TEST BANK FOR Intermediate Accounting 3rd Edition by Elizabeth A Gordon ISBN: 978-0136946694 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

,Intermediate Accounting, 3e (Gordon/Raedy/Sannella)
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Chapter 1 The Financial Reporting Environment
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1.1 Overview of Financial Reporting dt dt dt




1) The financial reporting process generates three basic financial statements.
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Answer: FALSE
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Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
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2) The demand for financial information is based on market participant demand.
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Answer: TRUE
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Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt


AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




3) Managers of economic entities are best considered to be users of financial information.
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Answer: FALSE
dt d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




4) Managers of economic entities are best considered to be preparers of financial information.
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Answer: TRUE
dt d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly traded
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companies.
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Answer: TRUE d t d t



Diff: 2 dt



Objective: 1.1 IFRS/GA d t dt



AP: GAAP
d t



AACSB: Application of knowledge
d t d t dt dt




6) The FASB gives the SEC authority to regulate accounting for publicly traded companies.
dt dt dt dt dt dt dt dt dt dt dt dt



Answer: FALSE
dt d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP
d t



AACSB: Application of knowledge
d t d t dt dt




1
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,7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards and
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oversees the audits of public companies in the United States.
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Answer: FALSE d t d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP
d t



AACSB: Application of knowledge
d t d t dt dt




8) Financial accounting standards influence the behavior of managers and other internal users.
dt dt dt dt dt dt dt dt dt dt dt



Answer: TRUE
dt d t



Diff: 2 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




9) Theories and procedures that evolve as a result of lobbying from various groups are examples of
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proactive factors within the legal, economic, political, and social environment.
dt dt dt dt dt dt dt dt dt dt



Answer: FALSE d t d t



Diff: 1 dt



Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




10) Financial information includes information that is not governed by rules set forth by the accounting
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standard-setting bodies.
dt dt



Answer: TRUE d t d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt


AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




11) What is the term that describes the process of identifying, measuring, and communicating financial
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information about an economic entity to various user groups?
dt dt dt dt dt dt dt dt dt



A) financial reporting dt



B) accounting standard setting dt dt



C) financial statement dt



D) financial accounting dt



Answer: D
dt d t



Diff: 2 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




2
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dt dt dt dt dt

, 12) Which element of financial accounting involves identifying the individuals who demand financial
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information?
dt



A) financial information dt



B) economic entity dt



C) user groups dt



D) legal, economic, political, and social environment
dt dt dt dt dt d



Answer: C
t d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




13) Which of the following is not one of the four basic financial statements?
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A) balance sheet dt



B) trial balance
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C) cash flows statement
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D) statement of comprehensive income dt dt dt dt



Answer: B d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board dt dt dt



B) Public Company Accounting Oversight Board
dt dt dt dt



C) International Accounting Standards Board dt dt dt



D) Securities and Exchange Commission dt dt dt dt



Answer: A d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP/IFRS
d t



AACSB: Application of knowledge
d t d t dt dt




15) Which organization is responsible for setting auditing standards and overseeing the audits of public
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companies in the United States?
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A) Financial Accounting Standards Board dt dt dt



B) Public Company Accounting Oversight Board
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C) American Institute of Certified Public Accountants dt dt dt dt dt



D) Securities and Exchange Commission dt dt dt dt



Answer: B d t



Diff: 1 dt


Objective: 1.1 IFRS/GA d t dt



AP: GAAP
d t



AACSB: Application of knowledge
d t d t dt dt




3
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