Intermediate Accounting Exam 1 Study Guide With Latest Solutions

Intermediate Accounting Exam 1 Study Guide With Latest Solutions GAAP (Generally Accepted Accounting Principles) - answerA common set of accounting standards and procedures are called IRFS includes both International Reporting Standards and International Accounting Standards - answerTRUE International Financial Reporting Standards preceded International Accounting Standards - answerTRUE The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board. - answerTRUE The rules-based standards of IFRS are more detailed than the simpler, principles-based standards of GAAP - answerFALSE Accounting principles are "generally accepted" only when I. an authoritative accounting rule-making body has established it in an official pronouncement II. a given practice has been accepted as appropriate because of its universal application. - answer1 AND 2 The role of the Securities and Exchange Commission (SEC) in the formulation of accounting standards can be best described as - answerVARIED - the SEC relies on the FASB to develop standards but gives advice and recommendations to the private sector Which of the following was established by the federal government to help develop and standardize financial information presented to stockholders? - answerSecurities and Exchange Commission (SEC) The first step taken in the establishment of a typical FASB statement is - answertopics are identified and placed on the board's agenda Financial Accounting Concepts are a major type of pronouncement issued by the FASB (Financial Accounting Standards Board) - answerTRUE Which of the following is NOT considered a GAAP document? - answerStatement of Financial Accounting Concepts