Test Bank for Intermediate Accounting 4th IFRS Edition by Wiley

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Copyright © 2022 Pearson Education, Inc.
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,Intermediate Accounting, 4e (Gordon/Raedy/Sannella) x$ x$ x$




Chapter 1 The Financial Reporting Environment
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1.1 Overview of Financial Reporting x$ x$ x$




1) The financial reporting process generates three basic financial statements
x$ x$ x$ x$ x$ x$ x$ x$



. Answer: FALSE
x$ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS
x $



AACSB: Application of knowledge
x $ x $ x$ x$




2) The demand for financial information is based on market participant demand
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



. Answer: TRUE
x$ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$


AP: GAAP/IFRS
x $



AACSB: Application of knowledge
x $ x $ x$ x$




3) Managers of economic entities are best considered to be users of financial information
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



. Answer: FALSE
x$ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS
x $



AACSB: Application of knowledge
x $ x $ x$ x$




4) Managers of economic entities are best considered to be preparers of financial information
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



. Answer: TRUE
x$ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS
x $



AACSB: Application of knowledge
x $ x $ x$ x$




5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly trade
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



d companies.
x$



Answer: TRUE x $ x $



Diff: 2 x$



Objective: 1.1 IFRS/GA x $ x$



AP: GAAP x $



AACSB: Application of knowledge
x $ x $ x$ x$




6) The FASB gives the SEC authority to regulate accounting for publicly traded companies
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



. Answer: FALSE
x$ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP x $



AACSB: Application of knowledge
x $ x $ x$ x$




2
Copyright © 2022 Pearson Education, Inc.
x$ x$ x$ x$ x$

, 7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards an
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



d oversees the audits of public companies in the United States.
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



Answer: FALSE x $ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP x $



AACSB: Application of knowledge
x $ x $ x$ x$




8) Financial accounting standards influence the behavior of managers and other internal users
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



. Answer: TRUE
x$ x $



Diff: 2 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS x $



AACSB: Application of knowledge
x $ x $ x$ x$




9) Theories and procedures that evolve as a result of lobbying from various groups are examples o
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



f proactive factors within the legal, economic, political, and social environment.
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



Answer: FALSE x $ x $



Diff: 1 x$



Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS x $



AACSB: Application of knowledge
x $ x $ x$ x$




10) Financial information includes information that is not governed by rules set forth by the accountin
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



g standard-setting bodies.
x$ x$



Answer: TRUE x $ x $



Diff: 1 x$


Objective: 1.1 IFRS/GA x $ x$


AP: GAAP/IFRS x $



AACSB: Application of knowledge
x $ x $ x$ x$




11) What is the term that describes the process of identifying, measuring, and communicating financia
x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$ x$



l information about an economic entity to various user groups?
x$ x$ x$ x$ x$ x$ x$ x$ x$



A) financial reporting x$



B) accounting standard setting x$ x$



C) financial statement x$



D) financial accounting x$



Answer: D
x$ x $



Diff: 2 x$


Objective: 1.1 IFRS/GA x $ x$



AP: GAAP/IFRS x $



AACSB: Application of knowledge
x $ x $ x$ x$




3
Copyright © 2022 Pearson Education, Inc.
x$ x$ x$ x$ x$