Test bank for intermediate accounting 3rd edition elizabeth a gordon

IntermediateeAccounting,e3ee(Gordon/Raedy/Sannella)
Chaptere1 TheeFinancialeReportingeEnvironment

1.1 OvervieweofeFinancialeReporting

1) Theefinancialereportingeprocessegeneratesethreeebasicefinancialestatements.e
Answer:e FALSE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

2) Theedemandeforefinancialeinformationeisebasedeonemarketeparticipantedemand.e
Answer:e TRUE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

3) Managerseofeeconomiceentitieseareebesteconsideredetoebeeuserseofefinancialeinformation.e
Answer:e FALSE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

4) Managerseofeeconomiceentitieseareebesteconsideredetoebeepreparerseofefinancialeinformation.e
Answer:e TRUE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

5) TheeSecuritieseandeExchangeeCommissione(SEC)eregulatesefinancialereportingeforepubliclyetradede
companies.
Answer:e TRUE
Diff:e2
Objective:e1.1eIFRS/GAA
P:e GAAP
AACSB:e Applicationeofeknowledge

6) TheeFASBegivesetheeSECeauthorityetoeregulateeaccountingeforepubliclyetradedecompanies.e
Answer:e FALSE
Diff:e1
Objective:e1.1eIFRS/GAA
P:e GAAP
AACSB:e Applicationeofeknowledge




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,7) TheePubliceCompanyeAccountingeOversighteBoarde(PCAOB)esetsefinancialeaccountingestandardseande
overseesetheeauditseofepublicecompanieseinetheeUnitedeStates.
Answer:e FALSE
Diff:e1
Objective:e1.1eIFRS/GAA
P:e GAAP
AACSB:e Applicationeofeknowledge

8) Financialeaccountingestandardseinfluenceetheebehavioreofemanagerseandeothereinternaleusers.e
Answer:e TRUE
Diff:e2
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

9) Theorieseandeproceduresethateevolveeaseaeresulteofelobbyingefromevariousegroupseareeexampleseofe
proactiveefactorsewithinetheelegal,eeconomic,epolitical,eandesocialeenvironment.
Answer:e FALSE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

10) Financialeinformationeincludeseinformationethateisenotegovernedebyeruleseseteforthebyetheeaccountinge
standard-settingebodies.
Answer:e TRUE
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

11) Whateisetheetermethatedescribesetheeprocesseofeidentifying,emeasuring,eandecommunicatingefinanciale
informationeabouteaneeconomiceentityetoevariouseuseregroups?
A) financialereporting
B) accountingestandardesetting
C) financialestatement
D) financialeaccountinge
Answer:e D
Diff:e2
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge




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,12) Whicheelementeofefinancialeaccountingeinvolveseidentifyingetheeindividualsewhoedemandefinanciale
information?
A) financialeinformation
B) economiceentity
C) useregroups
D) legal,eeconomic,epolitical,eandesocialeenvironmente
Answer:e C
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

13) Whicheofetheefollowingeisenoteoneeofetheefourebasicefinancialestatements?
A) balanceesheet
B) trialebalance
C) casheflowsestatement
D) statementeofecomprehensiveeincomee
Answer:e B
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

14) WhicheorganizationeiseresponsibleeforepromulgatingeU.S.eGAAP?
A) FinancialeAccountingeStandardseBoard
B) PubliceCompanyeAccountingeOversighteBoard
C) InternationaleAccountingeStandardseBoard
D) SecuritieseandeExchangeeCommissione
Answer:e A
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

15) Whicheorganizationeiseresponsibleeforesettingeauditingestandardseandeoverseeingetheeauditseofepublice
companieseinetheeUnitedeStates?
A) FinancialeAccountingeStandardseBoard
B) PubliceCompanyeAccountingeOversighteBoard
C) AmericaneInstituteeofeCertifiedePubliceAccountants
D) SecuritieseandeExchangeeCommissione
Answer:e B
Diff:e1
Objective:e1.1eIFRS/GAA
P:e GAAP
AACSB:e Applicationeofeknowledge




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, 16) WhicheorganizationeprepareseandegradesetheeUniformeCPAeExamination?
A) FinancialeAccountingeStandardseBoard
B) PubliceCompanyeAccountingeOversighteBoard
C) AmericaneInstituteeofeCertifiedePubliceAccountants
D) InternationaleAccountingeStandardseBoarde
Answer:e C
Diff:e1
Objective:e1.1eIFRS/GAA
P:e GAAP
AACSB:eee Applicationeofeknowledge

17) Whicheofetheefollowingeuseregroupseconsistseofeindividualsethateprovideeguidanceetoeotherseinemakingei
nvestmenteandecreditedecisions?
A) financialeanalysts
B) equityeinvestors
C) creditors
D) supplierse
Answer:eAeD
iff:e2eObjective
:e 1.1
IFRS/GAAP:e GAAP/IFRS
AACSB:e Applicationeofe knowledge

18) Whicheofetheefollowingeuseregroupseconsistseofeindividualsewhoeexpectetoereceiveeaereturneonetheirei
nvestment?
A) employees
B) equityeinvestors
C) creditors
D) supplierseandecustomerse
Answer:e B
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge

19) Whicheofetheefollowingeuseregroupseconsisteofecompaniesethateanalyzeefinancialeinformationetoeidentifye
theereportingeentity'seobjectives,eassumptions,eoverallebusinessestrategy,eandecapabilities?
A) competitors
B) creditorseandeotheredebteinvestors
C) employeeseandelaboreunions
D) supplierseandecustomerse
Answer:e A
Diff:e1
Objective:eee1.1eIFRS/GAA
P:e GAAP/IFRS
AACSB:e Applicationeofeknowledge




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