Accounting Theory
Terms in this set (35)
Which of the following bodies has the SEC Securities and Exchange Commission
ultimate authority to issue accounting
pronouncements in the United States?
Which of the following types of Statements of Concepts
pronouncements are intended to establish
the objectives and concepts that the FASB
will use in developing standards of financial
accounting and reporting?
We have an expert-written solution to this problem!
The impact of accounting reports on various Economic consequences
segments of our economic system is the
definition of the concept of
In the Entity theory of accounting, the assets False, Proprietary Theory
used in conducting business in an entity
belong to the proprietor; the liabilities are the
obligation of the proprietor; and, the net
result is the net worth of the proprietor
Which of the following is not viewed as a cost Monitoring expenditures by the managers
to the owners of the business in an agency
relationship?
, Accounting standards differ from accounting True
theories in that the standards specify
methods and approaches for the
measurement and recognition of economic
events, whereas the theories provide broad
guidelines and objectives that would guide
the development and evaluation of the
standards.
The proposition, Among firms that use FIFO True
inventory valuation method, top executives
receive higher bonus compensation, falls into
the category of inductive proposition.
Which of the following is not a benefit of Provides a frame of reference for resolving questions about the political effects of accounting
accounting theory
a. Guides standards setters
b. Provides a frame of reference for resolving
questions about the political effects of
accounting
c. Establishes bounds for judgment in
preparing financial statements
d. Increases financial statements users'
understanding of and confidence in financial
statements
In the Entity theory of accounting, the assets False
used in conducting business in an entity
belong to the proprietor; the liabilities are the
obligation of the proprietor; and, the net
result is the net worth of the proprietor
a. True
b. False
Terms in this set (35)
Which of the following bodies has the SEC Securities and Exchange Commission
ultimate authority to issue accounting
pronouncements in the United States?
Which of the following types of Statements of Concepts
pronouncements are intended to establish
the objectives and concepts that the FASB
will use in developing standards of financial
accounting and reporting?
We have an expert-written solution to this problem!
The impact of accounting reports on various Economic consequences
segments of our economic system is the
definition of the concept of
In the Entity theory of accounting, the assets False, Proprietary Theory
used in conducting business in an entity
belong to the proprietor; the liabilities are the
obligation of the proprietor; and, the net
result is the net worth of the proprietor
Which of the following is not viewed as a cost Monitoring expenditures by the managers
to the owners of the business in an agency
relationship?
, Accounting standards differ from accounting True
theories in that the standards specify
methods and approaches for the
measurement and recognition of economic
events, whereas the theories provide broad
guidelines and objectives that would guide
the development and evaluation of the
standards.
The proposition, Among firms that use FIFO True
inventory valuation method, top executives
receive higher bonus compensation, falls into
the category of inductive proposition.
Which of the following is not a benefit of Provides a frame of reference for resolving questions about the political effects of accounting
accounting theory
a. Guides standards setters
b. Provides a frame of reference for resolving
questions about the political effects of
accounting
c. Establishes bounds for judgment in
preparing financial statements
d. Increases financial statements users'
understanding of and confidence in financial
statements
In the Entity theory of accounting, the assets False
used in conducting business in an entity
belong to the proprietor; the liabilities are the
obligation of the proprietor; and, the net
result is the net worth of the proprietor
a. True
b. False
