TEST BANK FOR INTERMEDIATE ACCOUNTING, 3RD EDITION BY ELIZABETH A. GORDON QUESTIONS AND ANSWERS GRADED A+ |LATEST UPDATE| |100% VERIFIED| |2025-26|

Test Bank for Intermediate Accounting, 3rd Edition by Elizabeth A. Gordon
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IntermediatevAccounting,v3ev(Gordon/Raedy/Sannella)
All Chapters
v
Chapterv1 ThevFinancialvReportingvEnvironment

1.1 OverviewvofvFinancialvReporting

1) Thevfinancialvreportingvprocessvgeneratesvthreevbasicvfinancialvstatements
.vAnswer:v FALSE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

2) Thevdemandvforvfinancialvinformationvisvbasedvonvmarketvparticipantvdemand
.vAnswer:v TRUE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

3) Managersvofveconomicventitiesvarevbestvconsideredvtovbevusersvofvfinancialvinformation
.vAnswer:v FALSE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

4) Managersvofveconomicventitiesvarevbestvconsideredvtovbevpreparersvofvfinancialvinformation
.vAnswer:v TRUE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

5) ThevSecuritiesvandvExchangevCommissionv(SEC)vregulatesvfinancialvreportingvforvpubliclyvtrade
dvcompanies.
Answer:v v TRUE
Diff:v2
Objective:v 1.1vIFRS/GAA
P:v GAAP
AACSB:v v Applicationvofvknowledge

6) ThevFASBvgivesvthevSECvauthorityvtovregulatevaccountingvforvpubliclyvtradedvcompanies
.vAnswer:v FALSE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP
AACSB:v v Applicationvofvknowledge




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,7) ThevPublicvCompanyvAccountingvOversightvBoardv(PCAOB)vsetsvfinancialvaccountingvstandardsvan
dvoverseesvthevauditsvofvpublicvcompaniesvinvthevUnitedvStates.
Answer:v v FALSE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP
AACSB:v v Applicationvofvknowledge

8) Financialvaccountingvstandardsvinfluencevthevbehaviorvofvmanagersvandvothervinternalvusers
.vAnswer:v TRUE
Diff:v2
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

9) Theoriesvandvproceduresvthatvevolvevasvavresultvofvlobbyingvfromvvariousvgroupsvarevexamplesvo
fvproactivevfactorsvwithinvthevlegal,veconomic,vpolitical,vandvsocialvenvironment.
Answer:v v FALSE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

10) Financialvinformationvincludesvinformationvthatvisvnotvgovernedvbyvrulesvsetvforthvbyvthevaccountin
gvstandard-settingvbodies.
Answer:v v TRUE
Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

11) Whatvisvthevtermvthatvdescribesvthevprocessvofvidentifying,vmeasuring,vandvcommunicatingvfinancia
lvinformationvaboutvanveconomicventityvtovvariousvuservgroups?
A) financialvreporting
B) accountingvstandardvsetting
C) financialvstatement
D) financialvaccounting
vAnswer:v D

Diff:v2
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge




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,12) Whichvelementvofvfinancialvaccountingvinvolvesvidentifyingvthevindividualsvwhovdemandvfinancia
lvinformation?
A) financialvinformation
B) economicventity
C) uservgroups
D) legal,veconomic,vpolitical,vandvsocialvenvironment
vAnswer:v C

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

13) Whichvofvthevfollowingvisvnotvonevofvthevfourvbasicvfinancialvstatements?
A) balancevsheet
B) trialvbalance
C) cashvflowsvstatement
D) statementvofvcomprehensivevincome
vAnswer:v B

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

14) WhichvorganizationvisvresponsiblevforvpromulgatingvU.S.vGAAP?
A) FinancialvAccountingvStandardsvBoard
B) PublicvCompanyvAccountingvOversightvBoard
C) InternationalvAccountingvStandardsvBoard
D) SecuritiesvandvExchangevCommission
vAnswer:v A

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

15) Whichvorganizationvisvresponsiblevforvsettingvauditingvstandardsvandvoverseeingvthevauditsvofvpubli
cvcompaniesvinvthevUnitedvStates?
A) FinancialvAccountingvStandardsvBoard
B) PublicvCompanyvAccountingvOversightvBoard
C) AmericanvInstitutevofvCertifiedvPublicvAccountants
D) SecuritiesvandvExchangevCommission
vAnswer:v B

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP
AACSB:v v Applicationvofvknowledge




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, 16) WhichvorganizationvpreparesvandvgradesvthevUniformvCPAvExamination?
A) FinancialvAccountingvStandardsvBoard
B) PublicvCompanyvAccountingvOversightvBoard
C) AmericanvInstitutevofvCertifiedvPublicvAccountants
D) InternationalvAccountingvStandardsvBoard
vAnswer:v C

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP
AACSB:v v Applicationvofvknowledge

17) Whichvofvthevfollowingvuservgroupsvconsistsvofvindividualsvthatvprovidevguidancevtovothersvi
nvmakingvinvestmentvandvcreditvdecisions?
A) financialvanalysts
B) equityvinvestors
C) creditors
D) suppliers
vAnswer:vAv

Diff:v2
Objective:v1.1v IFRS/GAA
P:v v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

18) Whichvofvthevfollowingvuservgroupsvconsistsvofvindividualsvwhovexpectvtovreceivevavreturnvonvthei
rvinvestment?
A) employees
B) equityvinvestors
C) creditors
D) suppliersvandvcustomers
vAnswer:v B

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge

19) Whichvofvthevfollowingvuservgroupsvconsistvofvcompaniesvthatvanalyzevfinancialvinformationvtovidentif
yvthevreportingventity'svobjectives,vassumptions,voverallvbusinessvstrategy,vandvcapabilities?
A) competitors
B) creditorsvandvothervdebtvinvestors
C) employeesvandvlaborvunions
D) suppliersvandvcustomers
vAnswer:v A

Diff:v1
Objective:v 1.1vIFRS/GAA
P:v GAAP/IFRS
AACSB:v v Applicationvofvknowledge




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