Test Bank for Intermediate Accounting 3rd Edition by Elizabeth A. Gordon, Jana S. Raedy

Test Bank for For Intermediate Accounting
3rd Edition by Elizabeth A. Gordon, Jana S. Raedy

,IntermediateKAccounting,K3eK(Gordon/Raedy/Sannella)
ChapterK1 TheKFinancialKReportingKEnvironment

1.1 OverviewKofKFinancialKReporting

1) TheKfinancialKreportingKprocessKgeneratesKthreeKbasicKfinancialKstatemen
Answer: ts.KFALSE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

2) TheKdemandKforKfinancialKinformationKisKbasedKonKmarketKparticipantKdema
Answer: nd.KTRUE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

3) ManagersKofKeconomicKentitiesKareKbestKconsideredKtoKbeKusersKofKfinancialKinformati
Answer: on.KFALSE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

4) ManagersKofKeconomicKentitiesKareKbestKconsideredKtoKbeKpreparersKofKfinancialKinformati
Answer: on.KTRUE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

5) TheKSecuritiesKandKExchangeKCommissionK(SEC)KregulatesKfinancialKreportingKforKpubliclyKtrad
edKcompanies.
Answer: TRUE
Diff:K2
Objective:K1.1KIFRS/GAA
P:KGAAP
AACSB:K ApplicationKofKknowledge

6) TheKFASBKgivesKtheKSECKauthorityKtoKregulateKaccountingKforKpubliclyKtradedKcompani
Answer: es.KFALSE
Diff:K1
Objective:K1.1KIFRS/GAA
P:KGAAP
AACSB:K ApplicationKofKknowledge

,7) TheKPublicKCompanyKAccountingKOversightKBoardK(PCAOB)KsetsKfinancialKaccountingKstandardsKa
ndKoverseesKtheKauditsKofKpublicKcompaniesKinKtheKUnitedKStates.
Answer:K FALSE
Diff:K1
Objective:K1.1KIFRS/GAA
P:KGAAP
AACSB:K ApplicationKofKknowledge

8) FinancialKaccountingKstandardsKinfluenceKtheKbehaviorKofKmanagersKandKotherKinternalKuse
rs.KAnswer:K TRUE
Diff:K2
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

9) TheoriesKandKproceduresKthatKevolveKasKaKresultKofKlobbyingKfromKvariousKgroupsKareKexample
sKofKproactiveKfactorsKwithinKtheKlegal,Keconomic,Kpolitical,KandKsocialKenvironment.
Answer:K FALSE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

10) FinancialKinformationKincludesKinformationKthatKisKnotKgovernedKbyKrulesKsetKforthKbyKtheKaccount
ingKstandard-settingKbodies.
Answer:K TRUE
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

11) WhatKisKtheKtermKthatKdescribesKtheKprocessKofKidentifying,Kmeasuring,KandKcommunicatingKfinan
cialKinformationKaboutKanKeconomicKentityKtoKvariousKuserKgroups?
A) financialKreporting
B) accountingKstandardK setting
C) financialKstatement
D) financialKaccountin
gKAnswer:K D
Diff:K2
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

, 12) WhichKelementKofKfinancialKaccountingKinvolvesKidentifyingKtheKindividualsKwhoKdemandKfinanc
ialKinformation?
A) financialKinformation
B) economicKentity
C) userKgroups
D) legal,Keconomic,Kpolitical,KandKsocialKenvironme
ntKAnswer:K C
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

13) WhichKofKtheKfollowingKisKnotKoneKofKtheKfourKbasicKfinancialKstatements?
A) balanceKsheet
B) trialKbalance
C) cashKflowsKstatement
D) statementKofKcomprehensiveKincom
eKAnswer:K B
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

14) WhichKorganizationKisKresponsibleKforKpromulgatingKU.S.KGAAP?
A) FinancialKAccountingKStandardsK Board
B) PublicKCompanyKAccountingKOversightKBoard
C) InternationalKAccountingK StandardsK Board
D) SecuritiesKandKExchangeKCommissio
nKAnswer:KA
Diff:K1
Objective:K 1.1KIFRS/GA
AP:KGAAP/IFRS
AACSB:K ApplicationKofKknowledge

15) WhichKorganizationKisKresponsibleKforKsettingKauditingKstandardsKandKoverseeingKtheKauditsKofKpu
blicKcompaniesKinKtheKUnitedKStates?
A) FinancialKAccountingKStandardsK Board
B) PublicKCompanyKAccountingKOversightKBoard
C) AmericanKInstituteKofKCertifiedKPublicKAccountants
D) SecuritiesKandKExchangeKCommissio
nKAnswer:K B
Diff:K1
Objective:K1.1KIFRS/GAA
P:KGAAP
AACSB:K ApplicationKofKknowledge