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TEST BANK
Using Financial Accounting Information: The Alternative to Debits and Credits
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Gary A. Porter

10th Edition
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, Table of Contents — Main Chapters
1. Accounting as a Form of Communication
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2. Financial Statements and the Annual Report
3. Processing Accounting Information
4. Income Measurement and Accrual Accounting
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5. Inventories and Cost of Goods Sold
6. Cash and Internal Control
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7. Receivables and Investments
8. Operating Assets: Property, Plant, and Equipment, and Intangibles
9. Current Liabilities, Contingencies, and the Time Value of Money
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10.Long-Term Liabilities
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11.Stockholders’ Equity
12.The Statement of Cash Flows
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13.Financial Statement Analysis
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, True / False

1. The state of economic development can affect accounting standards.
a. True
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b. False
ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. A-2-A-3
LEARNING OBJECTIVES: FACC.PONO.18.A-01 - LO: A-01
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NATIONAL STANDARDS: United States - BUSPROG: Diversity
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
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AICPA: FN-Reporting
KEYWORDS: Bloom's: Remembering

2. Japan has a greater number of differences than the United States between the amount of income reported to
stockholders and that reported to the taxing authorities.
a. True
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b. False
ANSWER: False
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DIFFICULTY: Easy
REFERENCES: pp. A-2-A-3
LEARNING OBJECTIVES: FACC.PONO.18.A-01 - LO: A-01
KS
NATIONAL STANDARDS: United States - BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
AICPA: FN-Reporting
KEYWORDS: Bloom's: Remembering
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3. No single explanation can be given for the divergence of accounting standards.
a. True
b. False
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ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. A-2-A-3
LEARNING OBJECTIVES: FACC.PONO.18.A-01 - LO: A-01
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NATIONAL STANDARDS: United States - BUSPROG: Diversity
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
AICPA: FN-Reporting
KEYWORDS: Bloom's: Remembering
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, 4. In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders
and that reported to the taxing authorities exist than in the United States.
a. True
b. False
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ANSWER: True
DIFFICULTY: Easy
REFERENCES: pp. A-2-A-3
LEARNING OBJECTIVES: FACC.PONO.18.A-01 - LO: A-01
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NATIONAL STANDARDS: United States - BUSPROG: Diversity
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
AICPA: FN-Reporting
TB
KEYWORDS: Bloom's: Remembering

5. According to the text, in economies like those that made up the former Soviet Union, accounting standards are
relatively less complex due to the fact that they are just beginning to be developed.
a. True
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b. False
ANSWER: True
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DIFFICULTY: Easy
REFERENCES: pp. A-2-A-3
LEARNING OBJECTIVES: FACC.PONO.18.A-01 - LO: A-01
KS
NATIONAL STANDARDS: United States - BUSPROG: Communications
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
AICPA: FN-Reporting
KEYWORDS: Bloom's: Remembering
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6. Ultimately, it will be the responsibility of the FASB in the United States to decide if the advantages of IFRS’s outweigh
the disadvantages.
a. True
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b. False
ANSWER: False
DIFFICULTY: Moderate
REFERENCES: pp. A-3-A-4
LEARNING OBJECTIVES: FACC.PONO.18.A-02 - LO: A-02
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NATIONAL STANDARDS: United States - BUSPROG: Diversity
ACCREDITING STANDARDS: ACBSP: APC-02-GAAP
AICPA: FN-Reporting
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KEYWORDS: Bloom's: Understanding
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