Test Bank Intermediate Accounting 3rd Edition, Kindle Edition by Elizabeth A. Gordon (Author), Jana S. Raedy (Author), Alexander J. Sannella (Author) All Chapters LATEST VERSION

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,Test;,Bank;,for;,Intermediate;,Accounting,;,3rd;,Edition;,by;,Elizabeth;,A.;,Gordon



Intermediate;,Accounting,;,3e;,(Gordon/Raedy/Sannella)
All;,Chapters
Chapter;,1 The;,Financial;,Reporting;,Environment

1.1 Overview;,of;,Financial;,Reporting

1) The;,financial;,reporting;,process;,generates;,three;,basic ;,financial;,statemen
ts.;,Answer:; , FALSE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

2) The;,demand;,for;,financial;,information;,is;,based;,on;,market;,participant;,dema
nd.;,Answer:; , TRUE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

3) Managers;,of;,economic ;,entities;,are;,best;,considered;,to;,be;,users;,of;,financial;,informati
on.;,Answer:; , FALSE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

4) Managers;,of;,economic ;,entities;,are;,best;,considered;,to;,be;,preparers;,of;,financial;,informati
on.;,Answer:; , TRUE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

5) The;,Securities;,and;,Exchange;,Commission;,(SEC);,regulates;,financial;,reporting;,for;,publicly;,tra
ded;,companies.
Answer:; , ; , TRUE
Diff:;,2
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP
AACSB:; , ; , Application;,of;,knowledge

6) The;,FASB;,gives;,the;,SEC;,authority;,to;,regulate;,accounting;,for;,publicly;,traded;,compan
ies.;,Answer:; , FALSE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP
AACSB:; , ; , Application;,of;,knowledge
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,7) The;,Public ;,Company;,Accounting;,Oversight;,Board;,(PCAOB);,sets;,financial;,accounting;,standards;,
and;,oversees;,the;,audits;,of;,public ;,companies;,in;,the;,United;,States.
Answer:; , ; , FALSE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP
AACSB:; , ; , Application;,of;,knowledge

8) Financial;,accounting;,standards;,influence;,the;,behavior;,of;,managers;,and;,other;,internal;,us
ers.;,Answer:; , TRUE
Diff:;,2
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

9) Theories;,and;,procedures;,that;,evolve;,as;,a;,result;,of;,lobbying;,from;,various;,groups;,are;,exampl
es;,of;,proactive;,factors;,within;,the;,legal,;,economic,;,political,;,and;,social;,environment.
Answer:; , ; , FALSE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

10) Financial;,information;,includes;,information;,that;,is;,not;,governed;,by;,rules;,set;,forth;,by;,the;,accoun
ting;,standard-setting;,bodies.
Answer:; , ; , TRUE
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

11) What;,is;,the;,term;,that;,describes;,the;,process;,of;,identifying,;,measuring,;,and;,communicating;,finan
cial;,information;,about;,an;,economic ;,entity;,to;,various;,user;,groups?
A) financial;,reporting
B) accounting;,standard;,setting
C) financial;,statement
D) financial;,accountin
g;,Answer:; , D
Diff:;,2
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge




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, 12) Which;,element;,of;,financial;,accounting;,involves;,identifying;,the;,individuals;,who;,demand;,finan
cial;,information?
A) financial;,information
B) economic ;,entity
C) user;,groups
D) legal,;,economic,;,political,;,and;,social;,environme
nt;,Answer:; , C
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

13) Which;,of;,the;,following;,is;,not;,one;,of;,the;,four;,basic ;,financial;,statements?
A) balance;,sheet
B) trial;,balance
C) cash;,flows;,statement
D) statement;,of;,comprehensive;,incom
e;,Answer:; , B
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

14) Which;,organization;,is;,responsible;,for;,promulgating;,U.S.;,GAAP?
A) Financial;,Accounting;,Standards;,Board
B) Public ;,Company;,Accounting;,Oversight;,Board
C) International;,Accounting;,Standards;,Board
D) Securities;,and;,Exchange;,Commissio
n;,Answer:; , A
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP/IFRS
AACSB:; , ; , Application;,of;,knowledge

15) Which;,organization;,is;,responsible;,for;,setting;,auditing;,standards;,and;,overseeing;,the;,audits;,of;,pu
blic ;,companies;,in;,the;,United;,States?
A) Financial;,Accounting;,Standards;,Board
B) Public ;,Company;,Accounting;,Oversight;,Board
C) American;,Institute;,of;,Certified;,Public ;,Accountants
D) Securities;,and;,Exchange;,Commissio
n;,Answer:; , B
Diff:;,1
Objective:; , 1.1;,IFRS/GA
AP:; , GAAP
AACSB:; , ; , Application;,of;,knowledge




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