Accounting Crash Course Questions And Answers

The regulating body that oversees the development of accounting standards in the U.S. is: SFAS GAAP FASB IASB - answer - FASB formulates accounting standards through the issuance of Statements of Financial Accounting Standards (SFAS). These statements make up the body of accounting rules known as the Generally Accepted Accounting Principles (GAAP). IASB oversees international financial reporting standards (IFRS). Which of the following statements is TRUE? GAAP requires that firms show recorded values for acquired intangible assets such as patents and trademarks on their financial statements. GAAP requires that firms show recorded values for intangible assets such as employee and customer loyalty. GAAP requires that financial statements accurately reflects the market value of internally-developed trademarks such as the value of the Coca-Cola brand name. All of the above. - answer - GAAP requires that firms show recorded values for acquired intangible assets such as patents and trademarks on their financial statements. GAAP requires that firms only show measurable activities, such as the value of acquired intangible assets. Assets such as employee, customer loyalty and internally-developed trademarks are not shown on financial statements because they're difficult to quantify. Which of the following statements is TRUE? Publicly traded US companies are required to file four 10-Q's and one 10-K annually. All US companies are required to file three 10-Q's and one 10-K annually. Publicly traded US companies are required to file three 10-Q's and one 10-K annually. Publicly traded US companies are required to file one 10-K annually; 10-Q's are typically filed but are technically voluntary. - answer - Publicly traded US companies are required to file three 10-Q's and one 10-K annually. Publicly-traded US companies must file three quarterly (10-Q) reports at the end of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal year. he income statement is designed to measure: The liquidity of a firm. How solvent a company has been. The income of a firm at a point in time. Cash inflows/outflows generated over a period of time. The profits of a firm over a period of time. - answer - The profits of a firm over a period of time. The income statement is designed to show the profitability of a business (revenues less expenses) over a period of time (usually a quarter or year). The income stat