Test Bank for Intermediate Accounting 18th Edition by Kieso, Weygandt and Warfield, ISBN: 9781119790976, All 23 Chapters Covered, Verified Latest Edition

TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete

,Table of Contents hs hs




1 The Environment and Conceptual Framework of Financial Reporting
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2 The Accounting Information System
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3 Income Statement, Related Information, and Revenue Recognition
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4 Balance Sheet and Statement of Cash Flows
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5 Accounting and the Time Value of Money
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6 Cash and Receivables
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7 Valuation of Inventories: A Cost-Basis Approach
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8 Inventories: Additional Valuation Issues
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9 Acquisition and Disposition of Property, Plant, and Equipment
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10 Depreciation, Impairments, and Depletion
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11 Intangible Assets
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12 Current Liabilities and Contingencies
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13 Long-Term Liabilities
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14 Stockholders’ Equity
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15 Dilutive Securities and Earnings per Share
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16 Investments
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17 Revenue Recognition
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18 Accounting for Income Taxes
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19 Accounting for Pensions and Postretirement Benefits
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20 Accounting for Leases
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21 Accounting Changes and Error Analysis
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22 Statement of Cash Flows
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23 Full Disclosure in Financial Reporting
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, CHAPTER1 s
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THEENVIRONMENTANDCONCEPTUALFRAMEWORK OF FINANCIA
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L REPORTING hs




IFRS questions are available at the end of this chapter.
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TRUE-FALSE—Conceptual
1. Financial statements are the principal means through which a company communicates its financial inform hs hs hs hs hs hs hs hs hs hs hs hs hs




ation to those outside it. hs hs hs hs




Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




2. Users of financial reports of a company use the information provided by these reports to make cap
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ital allocation decisions. hs hs




Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




3. An effective process of capital allocation provides an efficient market for buying and selling securities and o
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btaining and granting credit. hs hs hs




Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




4. Investors are interested in financial reporting because it provides information that is useful for making deci hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs




sions.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




5. Users of financial accounting statements have both coinciding and conflicting needs for informa
h s h s h s h s h s h s h s h s h s h s h s hs




tion of various types. hs hs hs




Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




6. Although the FASB has developed a conceptual framework, no Statements of Financial Accounting Conce hs hs hs hs hs hs hs hs hs hs hs hs hs




pts have been issued to date. hs hs hs hs hs




Ans: F, LO: 1, Bloom: K, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stateme
hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs h s hs hs




nt Analysis, IFRS: None hs hs hs




7. The passage of a new FASB Accounting Standards Update requires the support of five of the seven board m
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embers.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Preparation, IFRS: None hs hs hs




8. Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are use hs hs hs hs hs hs hs hs hs h s hs hs hs




d by the FASB in developing future standards of financial accounting and reporting.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Analysis, IFRS: None hs hs hs




9. TheFASB’s Codification createsa new set of GAAP. hs hs hs hs hs hs hs hs




Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial S
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tatement Analysis, IFRS: None hs hs hs

, 1-2
hs hs Test Bank for Intermediate Accounting, Eighteenth Edition
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10. The objective of financial reporting is to report the plans made by a company to improve the productivity of it
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s employees.
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Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Sta
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




tement Preparation, IFRS: None hs hs hs




11. A soundly developed conceptual framework enables the FASB to issue more useful and consisten
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t pronouncements over time.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




12. Aconceptual framework is a coherent system of concepts that flow from an objective.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




13. The first level of the conceptual framework identifies the recognition, measurement, and disclosu
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re concepts used in establishing accounting standards.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




14. Theobjectiveof financialreportingserves asthefoundation oftheconceptual framework.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




15. Users of financial statements are assumed to need no knowledge of business and financial accounting mat
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ters to understand the information contained in financial statements.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




16. Relevance and faithful representation are the two fundamental qualities that make acc h s h s h s h s h s h s h s h s h s h s hs




ounting information useful for decision-making. hs hs hs hs




Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




17. The idea of consistency does not mean that companies cannot switch from one accounting method to anot
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her.
Ans: T, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Statement
hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs h s hs hs hs




Analysis, IFRS: None hs hs




18. Timelinessandneutralityare twoingredientsofrelevance. sh hs hs hs hs hs hs




Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




19. Verifiabilityandpredictive valuearetwoingredientsoffaithfulrepresentation. hs hs hs hs hs hs hs hs hs




Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Stat
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs




ement Analysis, IFRS: None hs hs hs




20. Revenues,gains,anddistributions toownersallincrease equity. hs hs hs hs hs hs hs hs




Ans: F, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, I
h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s h s hs hs hs




MA: Reporting & Control: Financial Statement Analysis, IFRS: None hs hs hs hs hs hs hs hs




21. Comprehensive income includes all changes in equity during a period except those res h s h s h s h s h s h s h s h s h s h s h s hs




ulting from investments by owners and distributions to owners.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA
hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs hs h s PC: None, IMA: Reporting
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& Control: Financial Statement Analysis, IFRS: None
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