TCU Review (Fronk, FR1) – Questions With Clear
Solutions
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Terms in this set (67)
T/F: Management reports are True. (Management vs general purpose Financial
prepared primarily for internal users. reporting)
T/F: Financial Reporting is indirectly False. Directly concerned with stockholders and
concerned with stockholders and creditors
creditors.
T/F: A company can choose the types False. GAAP requires specified statements.
of financial statements to report
according to the needs of external
users.
T/F: Providing both cash basis and True. Both types are useful. GAAP requires both
accrual basis information through types of statements.
financial reporting is beneficial to
external users.
, T/F: The addition of notes following False. Notes are required.
financial statements is an optional
way for companies to communicate
information with investors.
T/F: Financial reporting focuses False. The users are external.
primarily on internal users of financial
statements.
Acts as an advisory council to the FASAC
FASB
Develops international financial IASB
reporting standards
Emerged from actions of congress SEC
Professional organization of CPA's AICPA
Focused on technical issues, short- EITF
term in nature
Raises funds to support the FASB FAF
Requires a full time commitment as a FASB
board member
Requires registered companies to file SEC
annual financial statements
(Fundamental Qualitative) Materiality. Won't make a difference to the users.
Management concludes that a
depreciation error discovered will not
make a difference to external
financial statement users because it
represents less than 1% of net income.
Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (67)
T/F: Management reports are True. (Management vs general purpose Financial
prepared primarily for internal users. reporting)
T/F: Financial Reporting is indirectly False. Directly concerned with stockholders and
concerned with stockholders and creditors
creditors.
T/F: A company can choose the types False. GAAP requires specified statements.
of financial statements to report
according to the needs of external
users.
T/F: Providing both cash basis and True. Both types are useful. GAAP requires both
accrual basis information through types of statements.
financial reporting is beneficial to
external users.
, T/F: The addition of notes following False. Notes are required.
financial statements is an optional
way for companies to communicate
information with investors.
T/F: Financial reporting focuses False. The users are external.
primarily on internal users of financial
statements.
Acts as an advisory council to the FASAC
FASB
Develops international financial IASB
reporting standards
Emerged from actions of congress SEC
Professional organization of CPA's AICPA
Focused on technical issues, short- EITF
term in nature
Raises funds to support the FASB FAF
Requires a full time commitment as a FASB
board member
Requires registered companies to file SEC
annual financial statements
(Fundamental Qualitative) Materiality. Won't make a difference to the users.
Management concludes that a
depreciation error discovered will not
make a difference to external
financial statement users because it
represents less than 1% of net income.
