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 jk jk jk




1) The financial reporting process generates three basic financial statements.
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Answer: FALSE j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
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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 j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk


P: GAAP/IFRS
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AACSB: Application of knowledge
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3) Managers of economic entities are best considered to be users of financial information.
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Answer: FALSE j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
j k



AACSB: Application of knowledge
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4) Managers of economic entities are best considered to be preparers of financial information.
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Answer: TRUE j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
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AACSB: Application of knowledge
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5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly traded
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companies.
Answer: TRUE j k j k



Diff: 2 jk



Objective: 1.1 IFRS/GAA j k jk



P: GAAP
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AACSB: Application of knowledge
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6) The FASB gives the SEC authority to regulate accounting for publicly traded companies.
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Answer: FALSE j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP
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AACSB: Application of knowledge
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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 j k j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP
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AACSB: Application of knowledge
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8) Financial accounting standards influence the behavior of managers and other internal users.
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Answer: TRUE j k



Diff: 2 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
j k



AACSB: Application of knowledge
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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.
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Answer: FALSE j k j k



Diff: 1 jk



Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
j k



AACSB: Application of knowledge
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10) Financial information includes information that is not governed by rules set forth by the accounting s
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tandard-setting bodies. jk



Answer: TRUE j k j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk


P: GAAP/IFRS
j k



AACSB: Application of knowledge
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11) What is the term that describes the process of identifying, measuring, and communicating financial i
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nformation about an economic entity to various user groups?
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A) financial reporting jk



B) accounting standard setting jk jk



C) financial statement jk



D) financial accounting jk j



Answer: D
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Diff: 2 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
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AACSB: Application of knowledge
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2
Copyright © 2022 Pearson Education, Inc.
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, 12) Which element of financial accounting involves identifying the individuals who demand financial i
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nformation?
A) financial information jk



B) economic entity jk



C) user groups jk



D) legal, economic, political, and social environment
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Answer: C j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
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AACSB: Application of knowledge
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13) Which of the following is not one of the four basic financial statements?
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A) balance sheet jk



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



Answer: B j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
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AACSB: Application of knowledge
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14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board jk jk jk



B) Public Company Accounting Oversight Board
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C) International Accounting Standards Board jk jk jk



D) Securities and Exchange Commission jk jk jk jk



Answer: A j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP/IFRS
j k



AACSB: Application of knowledge
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15) Which organization is responsible for setting auditing standards and overseeing the audits of public
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companies in the United States? jk jk jk jk



A) Financial Accounting Standards Board jk jk jk



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



D) Securities and Exchange Commission jk jk jk jk



Answer: B j k



Diff: 1 jk


Objective: 1.1 IFRS/GAA j k jk



P: GAAP
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AACSB: Application of knowledge
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