Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
1
Answers are located in the second half of this document.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1)
The role of financial accounting information is to facilitate economic transactions and to
foster efficient allocation of resources among businesses and individuals.
⊚
true
⊚
false
Question Details
Learning Objective : 01-01 Understand why financial statements are valuable sources of
information ab
Difficulty : 1 Easy
AACSB : Reflective Thinking
AICPA : BB Resource Management
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Topic : Financial statements—As sources of information
Gradable : automatic
2)
Financial reports provide information that can reduce investors’ uncertainty about the
company’s opportunities and risks, thereby raising the company’s cost of capital.
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
,Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
3)
Comparability across companies allows analysts to identify real economic similarities in
and differences between underlying economic events because those similarities or
differences are
not obscured by accounting methods or disclosure practices.
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
2
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : FN Risk Analysis
,Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : FN Measurement
Topic : Fundamental Concepts of Financial Reporting
Gradable : automatic
4)
Executive compensation contracts seldom contain annual bonus and longer term pay
components tied to financial statement results, but instead usually rely on stock options as a
means to reward managers in a manner that is less subject to manipulation by management.
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
AICPA : BB Critical Thinking
Topic : Financial statements―For decision-maker needs
Gradable : automatic
5)
Congress stipulated that the SEC develop rules for companies to disclose information on
use of “conflict minerals.”
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
, Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
3
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
6)
The public and private sector regulatory agencies establish and enforce financial
reporting requirements designed to ensure that companies meet certain minimum levels of
financial disclosure.
⊚
true
⊚
false
Question Details
,Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-03 Understand how the supply of financial information is influenced
by the co
AICPA : BB Legal
Topic : Financial statements—Disclosure costs and benefits
Gradable : automatic
7)
Although the SEC has the ultimate legal authority to set accounting principles in the U.S.,
it has looked to private-sector organizations (e.g., the FASB) to establish and enforce these
principles.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
4
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
,Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
8)
Management has considerable discretion over the particular accounting procedures used
in the financial statements and over the details contained in related note disclosures.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : FN Measurement
Topic : Financial reporting strategies
Gradable : automatic
9)
Accounting standard-setting in the U.S. is a technical process and thus little affected by
political considerations.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
, Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
5
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
10)
Government regulation provides the primary motivation for firms to disclose
sustainability-related information.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
,Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-05 Understand why companies disclose sustainability information.
Topic : Sustainability Reporting under the GRI
AICPA : FN Reporting
Gradable : automatic
11)
While an increasing percentage of companies report on sustainability, consistency in
reporting continues to provide challenges for information users.
⊚
true
⊚
false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : BB Global
Learning Objective : 01-05 Understand why companies disclose sustainability information.
AACSB : Analytical Thinking
Bloom's : Analyze
Topic : Sustainability Reporting under the GRI
Gradable : automatic
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
,6
12)
The IASB and FASB have worked together to develop a single set of high-quality,
understandable, enforceable and globally accepted international financial reporting
standards.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AICPA : FN Measurement
AACSB : Diversity
AICPA : BB Global
Learning Objective : 01-07 Understand how International Financial Reporting Standards
(IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
13)
Foreign companies registered with the SEC that use IFRS no longer have to reconcile
their financial statements to U.S. GAAP.
⊚
true
⊚
false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
, Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Measurement
AICPA : BB Legal
AACSB : Diversity
Learning Objective : 01-07 Understand how International Financial Reporting Standards
(IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
14)
U.S. GAAP has been criticized as being too "rules-based" thus allowing managers to
invent "loopholes" that conform to the letter of a standard but simultaneously violate its
spirit.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
7
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Ch02
Version 1
1
Answers are located in the second half of this document.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1)
The role of financial accounting information is to facilitate economic transactions and to
foster efficient allocation of resources among businesses and individuals.
⊚
true
⊚
false
Question Details
Learning Objective : 01-01 Understand why financial statements are valuable sources of
information ab
Difficulty : 1 Easy
AACSB : Reflective Thinking
AICPA : BB Resource Management
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Topic : Financial statements—As sources of information
Gradable : automatic
2)
Financial reports provide information that can reduce investors’ uncertainty about the
company’s opportunities and risks, thereby raising the company’s cost of capital.
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
,Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
3)
Comparability across companies allows analysts to identify real economic similarities in
and differences between underlying economic events because those similarities or
differences are
not obscured by accounting methods or disclosure practices.
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
2
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : FN Risk Analysis
,Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : FN Measurement
Topic : Fundamental Concepts of Financial Reporting
Gradable : automatic
4)
Executive compensation contracts seldom contain annual bonus and longer term pay
components tied to financial statement results, but instead usually rely on stock options as a
means to reward managers in a manner that is less subject to manipulation by management.
⊚
true
⊚
false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
AICPA : BB Critical Thinking
Topic : Financial statements―For decision-maker needs
Gradable : automatic
5)
Congress stipulated that the SEC develop rules for companies to disclose information on
use of “conflict minerals.”
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
, Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
3
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information
demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
6)
The public and private sector regulatory agencies establish and enforce financial
reporting requirements designed to ensure that companies meet certain minimum levels of
financial disclosure.
⊚
true
⊚
false
Question Details
,Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-03 Understand how the supply of financial information is influenced
by the co
AICPA : BB Legal
Topic : Financial statements—Disclosure costs and benefits
Gradable : automatic
7)
Although the SEC has the ultimate legal authority to set accounting principles in the U.S.,
it has looked to private-sector organizations (e.g., the FASB) to establish and enforce these
principles.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
4
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
,Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
8)
Management has considerable discretion over the particular accounting procedures used
in the financial statements and over the details contained in related note disclosures.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : FN Measurement
Topic : Financial reporting strategies
Gradable : automatic
9)
Accounting standard-setting in the U.S. is a technical process and thus little affected by
political considerations.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
, Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
5
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why
management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
10)
Government regulation provides the primary motivation for firms to disclose
sustainability-related information.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
,Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-05 Understand why companies disclose sustainability information.
Topic : Sustainability Reporting under the GRI
AICPA : FN Reporting
Gradable : automatic
11)
While an increasing percentage of companies report on sustainability, consistency in
reporting continues to provide challenges for information users.
⊚
true
⊚
false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : BB Global
Learning Objective : 01-05 Understand why companies disclose sustainability information.
AACSB : Analytical Thinking
Bloom's : Analyze
Topic : Sustainability Reporting under the GRI
Gradable : automatic
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
,6
12)
The IASB and FASB have worked together to develop a single set of high-quality,
understandable, enforceable and globally accepted international financial reporting
standards.
⊚
true
⊚
false
Question Details
Difficulty : 1 Easy
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AICPA : FN Measurement
AACSB : Diversity
AICPA : BB Global
Learning Objective : 01-07 Understand how International Financial Reporting Standards
(IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
13)
Foreign companies registered with the SEC that use IFRS no longer have to reconcile
their financial statements to U.S. GAAP.
⊚
true
⊚
false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
, Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Measurement
AICPA : BB Legal
AACSB : Diversity
Learning Objective : 01-07 Understand how International Financial Reporting Standards
(IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
14)
U.S. GAAP has been criticized as being too "rules-based" thus allowing managers to
invent "loopholes" that conform to the letter of a standard but simultaneously violate its
spirit.
⊚
true
⊚
false
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Edition
Revsine
mynursytest.store
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Version 1
7
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
