Intermediate Accounting (Volume 1 & 2), 8th Canadian Edition By Thomas H. Beechy, Joan E. Conrod

TEST BANK for Intermediate Accounting (Volume 1), 8th
Canadian Edition By Thomas H. Beechy, Joan E. Conrod,
Verified Chapters 1 - 11, Complete Newest Version
Financial accounting is the process of identifying, measuring, analyzing, and
communicating financial information needed by management to plan, evaluate, and
control a company's operations - ANSWER: False

Financial statements are the principal means through which a company
communicates its financial information to those outside it - ANSWER: True

Users of financial reports of a company use the information provided by these
reports to make their capital allocation decisions - ANSWER: True

An effective process of capital allocation promotes productivity and provides an
efficient market for buying and selling securities and obtaining and granting credit -
ANSWER: True

The objective of financial reporting is to report the plans made by a company to
improve the productivity of its employees - ANSWER: False

Investors are interested in financial reporting because it provides information that is
useful for making decisions - ANSWER: True

Users of financial accounting statements have both coinciding and conflicting needs
for information of various types - ANSWER: True

The Securities and Exchange Commission appointed the Committee on Accounting
Procedure - ANSWER: False

The passage of a new FASB Accounting Standards Update requires the support of
five of the seven board members - ANSWER: False

Statements of Financial Accounting Concepts set forth fundamental objectives and
concepts that are used by the FASB in developing future standards of financial
accounting and reporting - ANSWER: True

The AICPA created the Accounting Principles Board in 1959 - ANSWER: True

The FASB's Codification creates a new set of GAAP - ANSWER: False

The AICPA's Code of Professional Conduct requires that members prepare financial
statements in accordance with generally accepted accounting principles - ANSWER:
True

, GAAP is a product of careful logic or empirical findings and is not influenced by
political action - ANSWER: False

The Public Company Accounting Oversight Board has oversight and enforcement
authority and establishes auditing and independence standards and rules - ANSWER:
True

The expectations gap is due to the difference between what the public thinks
accountants should do and what accountants think they can do - ANSWER: True

Financial reports in the early 21st century did not provide any information about a
company's soft assets (intangibles) - ANSWER: False

Accounting standards are now less likely to require the recording or disclosure of fair
value information - ANSWER: False

U.S. companies that list overseas are required to use International Financial
Reporting Standards, issued by the International Accounting Standards Board -
ANSWER: False

Ethical issues in financial accounting are governed by the AICPA - ANSWER: False

IFRS includes both International Financial Reporting Standards and International
Accounting Standards - ANSWER: True

International Financial Reporting Standards preceded International Accounting
Standards - ANSWER: False

The standard-setting structure used by the International Accounting Standards Board
is very similar to that used by the Financial Accounting Standards Board - ANSWER:
True

The rules-based standards of IFRS are more detailed than the simpler, principles-
based standards of U.S. GAAP - ANSWER: False

The International Accounting Standards Board has seven members - ANSWER: False

The internal control standards applicable to Sarbanes-Oxley (SOX) apply only to large
public companies listed on U.S. exchanges - ANSWER: True

General-purpose financial statements are the product of - ANSWER: financial
accounting

Which of the following is not a user of financial reports - ANSWER: Creditors
Government agencies
Unions
All user of financial reports