ACCT 3311 Exam 1 MC questions with |\ |\ |\ |\ |\ |\ |\
answers
Poseidon Corp is Aware that a large portion of receivables
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
may become uncollectible because the customer is in
|\ |\ |\ |\ |\ |\ |\ |\
talks for bankruptcy. By choosing not to disclose this
|\ |\ |\ |\ |\ |\ |\ |\ |\
information, the information provided in the statements |\ |\ |\ |\ |\ |\ |\
__________. - CORRECT ANSWERS ✔✔Does not faithfully |\ |\ |\ |\ |\ |\ |\
represent the firm's financial positon |\ |\ |\ |\
Under the U.S. GAAP, comprehensive income includes
|\ |\ |\ |\ |\ |\ |\
what? And does not include what? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Includes operating income, does not include |\ |\ |\ |\ |\ |\
investments by owners |\ |\
Which organization is responsible for promulgating U.S.
|\ |\ |\ |\ |\ |\ |\
GAAP? - CORRECT ANSWERS ✔✔Financial Accounting
|\ |\ |\ |\ |\ |\
Standards Board (FASB) |\ |\
The primary purpose of the conceptual framework is to
|\ |\ |\ |\ |\ |\ |\ |\ |\
provide guidance to _______________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔standards setters
|\ |\
During the standard-setting process, an __________ is
|\ |\ |\ |\ |\ |\ |\
issued by the FASB to solicit input from financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
, statement prepares, auditors, and other users of the
|\ |\ |\ |\ |\ |\ |\ |\
financial statements. - CORRECT ANSWERS ✔✔Exposure
|\ |\ |\ |\ |\ |\
draft
Which type of standard relies on theories and concepts
|\ |\ |\ |\ |\ |\ |\ |\ |\
that are linked to a well-developed theoretical
|\ |\ |\ |\ |\ |\ |\
framework? - CORRECT ANSWERS ✔✔Principles-based
|\ |\ |\ |\ |\
standard
______________ characteristics distinguish useful financial
|\ |\ |\ |\ |\
information from information that is not useful. -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔fundamental
|\ |\
Which financial statement is implicitly considered
|\ |\ |\ |\ |\ |\
dominant as standard setting have shifted toward
|\ |\ |\ |\ |\ |\
asset/liability approach? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Statement of financial position |\ |\ |\
___________________ indicates whether financial |\ |\ |\ |\
information depicts an economic event in a way that is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
complete, neutral, and free from error - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Faithful representation
|\ |\
Changes in equity that result from the company's central
|\ |\ |\ |\ |\ |\ |\ |\ |\
business operations are __________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔Revenues and expenses |\ |\
answers
Poseidon Corp is Aware that a large portion of receivables
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
may become uncollectible because the customer is in
|\ |\ |\ |\ |\ |\ |\ |\
talks for bankruptcy. By choosing not to disclose this
|\ |\ |\ |\ |\ |\ |\ |\ |\
information, the information provided in the statements |\ |\ |\ |\ |\ |\ |\
__________. - CORRECT ANSWERS ✔✔Does not faithfully |\ |\ |\ |\ |\ |\ |\
represent the firm's financial positon |\ |\ |\ |\
Under the U.S. GAAP, comprehensive income includes
|\ |\ |\ |\ |\ |\ |\
what? And does not include what? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Includes operating income, does not include |\ |\ |\ |\ |\ |\
investments by owners |\ |\
Which organization is responsible for promulgating U.S.
|\ |\ |\ |\ |\ |\ |\
GAAP? - CORRECT ANSWERS ✔✔Financial Accounting
|\ |\ |\ |\ |\ |\
Standards Board (FASB) |\ |\
The primary purpose of the conceptual framework is to
|\ |\ |\ |\ |\ |\ |\ |\ |\
provide guidance to _______________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔standards setters
|\ |\
During the standard-setting process, an __________ is
|\ |\ |\ |\ |\ |\ |\
issued by the FASB to solicit input from financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
, statement prepares, auditors, and other users of the
|\ |\ |\ |\ |\ |\ |\ |\
financial statements. - CORRECT ANSWERS ✔✔Exposure
|\ |\ |\ |\ |\ |\
draft
Which type of standard relies on theories and concepts
|\ |\ |\ |\ |\ |\ |\ |\ |\
that are linked to a well-developed theoretical
|\ |\ |\ |\ |\ |\ |\
framework? - CORRECT ANSWERS ✔✔Principles-based
|\ |\ |\ |\ |\
standard
______________ characteristics distinguish useful financial
|\ |\ |\ |\ |\
information from information that is not useful. -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔fundamental
|\ |\
Which financial statement is implicitly considered
|\ |\ |\ |\ |\ |\
dominant as standard setting have shifted toward
|\ |\ |\ |\ |\ |\
asset/liability approach? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔Statement of financial position |\ |\ |\
___________________ indicates whether financial |\ |\ |\ |\
information depicts an economic event in a way that is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
complete, neutral, and free from error - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Faithful representation
|\ |\
Changes in equity that result from the company's central
|\ |\ |\ |\ |\ |\ |\ |\ |\
business operations are __________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔Revenues and expenses |\ |\
