1
Accounting 3300 2| UPDATE| COMPLETE
FREQUENTLY TESTED QUESTIONS WITH
VERIFIED ANSWERS|GET IT 100%
ACCURATE!!
Generally accepted accounting principles - (ANSWER)c.) derive their credibility
and authority from general recognition and acceptance by the accounting
profession.
A soundly developed conceptual framework of concepts and objectives should -
(ANSWER)a.) increase financial statement users' understanding of and confidence
in financial reporting.
b.) enhance comparability among companies' financial statements.
c.) allow new and emerging practical problems to be more quickly solved.
d.) All of these answer choices are correct.
Which of the following is not true concerning a conceptual framework in
accounting? - (ANSWER)c.) It should be based on fundamental truths that are
derived from the laws of nature.
What is a purpose of having a conceptual framework?
which to build more useful standards. - (ANSWER)d.) To enable the profession to
more quickly solve emerging practical problems and to provide a foundation from
which to build more useful standards.
,2
Which of the following is not a benefit associated with the FASB Conceptual
Framework Project? - (ANSWER)d.) Business entities will need far less assistance
from accountants because the financial reporting process will be quite easy to
apply.
In the conceptual framework for financial reporting, what provides "the why"--the
purpose of accounting? - (ANSWER)d.) Objective of financial reporting
The underlying theme of the conceptual framework is - (ANSWER)a.) decision
usefulness.
The objective of general-purpose financial reporting is to provide financial
information about - (ANSWER)a reporting entity to each of the following except
a.) potential equity investors.
b.) potential lenders.
c.) present investors.
What is the primary objective of financial reporting as indicated in the conceptual
framework? - (ANSWER)a.) Provide information that is useful to those making
investing and credit decisions.
If the LIFO inventory method was used last period, it should be used for the
current and following periods because of - (ANSWER)a.) comparability.
, 3
What is the following is a characteristic describing the primary quality of
relevance? - (ANSWER)a.) Predictive value.
Which of the following is a fundamental quality of useful accounting information?
- (ANSWER)b.) Relevance.
Which of the following is a primary quality of useful accounting information? -
(ANSWER)c.) Faithful representation.
What is meant by comparability when discussing financial accounting
information? - (ANSWER)c.) Information that is measured and reported in a
similar fashion across companies.
What is meant by consistency when discussing financial accounting information? -
(ANSWER)a.) Information that is measured and reported in a similar fashion
across points in time.
Which of the following is an ingredient of relevance? - (ANSWER)d.) Materiality.
Which of the following is an ingredient of faithful representation? - (ANSWER)c.)
Neutrality.
Changing the method of inventory valuation should be reported in the financial
statements under what qualitative characteristic of accounting information? -
(ANSWER)a.) Consistency.
Accounting 3300 2| UPDATE| COMPLETE
FREQUENTLY TESTED QUESTIONS WITH
VERIFIED ANSWERS|GET IT 100%
ACCURATE!!
Generally accepted accounting principles - (ANSWER)c.) derive their credibility
and authority from general recognition and acceptance by the accounting
profession.
A soundly developed conceptual framework of concepts and objectives should -
(ANSWER)a.) increase financial statement users' understanding of and confidence
in financial reporting.
b.) enhance comparability among companies' financial statements.
c.) allow new and emerging practical problems to be more quickly solved.
d.) All of these answer choices are correct.
Which of the following is not true concerning a conceptual framework in
accounting? - (ANSWER)c.) It should be based on fundamental truths that are
derived from the laws of nature.
What is a purpose of having a conceptual framework?
which to build more useful standards. - (ANSWER)d.) To enable the profession to
more quickly solve emerging practical problems and to provide a foundation from
which to build more useful standards.
,2
Which of the following is not a benefit associated with the FASB Conceptual
Framework Project? - (ANSWER)d.) Business entities will need far less assistance
from accountants because the financial reporting process will be quite easy to
apply.
In the conceptual framework for financial reporting, what provides "the why"--the
purpose of accounting? - (ANSWER)d.) Objective of financial reporting
The underlying theme of the conceptual framework is - (ANSWER)a.) decision
usefulness.
The objective of general-purpose financial reporting is to provide financial
information about - (ANSWER)a reporting entity to each of the following except
a.) potential equity investors.
b.) potential lenders.
c.) present investors.
What is the primary objective of financial reporting as indicated in the conceptual
framework? - (ANSWER)a.) Provide information that is useful to those making
investing and credit decisions.
If the LIFO inventory method was used last period, it should be used for the
current and following periods because of - (ANSWER)a.) comparability.
, 3
What is the following is a characteristic describing the primary quality of
relevance? - (ANSWER)a.) Predictive value.
Which of the following is a fundamental quality of useful accounting information?
- (ANSWER)b.) Relevance.
Which of the following is a primary quality of useful accounting information? -
(ANSWER)c.) Faithful representation.
What is meant by comparability when discussing financial accounting
information? - (ANSWER)c.) Information that is measured and reported in a
similar fashion across companies.
What is meant by consistency when discussing financial accounting information? -
(ANSWER)a.) Information that is measured and reported in a similar fashion
across points in time.
Which of the following is an ingredient of relevance? - (ANSWER)d.) Materiality.
Which of the following is an ingredient of faithful representation? - (ANSWER)c.)
Neutrality.
Changing the method of inventory valuation should be reported in the financial
statements under what qualitative characteristic of accounting information? -
(ANSWER)a.) Consistency.
