Test Bank – Intermediate Accounting, 3rd Edition – Elizabeth A. Gordon, Jana S. Raedy, & Alexander J. Sannella – ISBN 9780136946694 (Full Chapters 1–22 Covered)

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Intermediate Accounting
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3rd Edition
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TEST BANK
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Elizabeth A. Gordon, Jana S. Raedy
Alexander J. Sannella
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Comprehensive Test Bank for Instructors
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and Students
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9780136946694

© Elizabeth A. Gordon, Jana S. Raedy & Alexander J. Sannella. All
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rights reserved. Reproduction or distribution without permission is
prohibited.




© MEDGEEK

, TABLE OF CONTENTS

Test Bank – Intermediate Accounting (3rd Edition)
Authors: Elizabeth A. Gordon, Jana S. Raedy, and Alexander J. Sannella
ISBN: 9780136946694
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PART I: FOUNDATIONS AND REVIEW

Chapter 1: The Financial Reporting Environment
Chapter 2: Financial Reporting Theory
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Chapter 3: Judgment and Applied Financial Accounting Research
Chapter 4: Review of the Accounting Cycle

PART II: FINANCIAL STATEMENTS AND THE TIME VALUE OF MONEY

Chapter 5: Statements of Net Income and Comprehensive Income
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Chapter 6: Statements of Financial Position and Cash Flows and the Annual Report
Chapter 7: Accounting and the Time Value of Money

PART III: ASSET MANAGEMENT
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Chapter 8: Revenue Recognition
Chapter 9: Short-Term Operating Assets: Cash and Receivables
Chapter 10: Short-Term Operating Assets: Inventory
Chapter 11: Long-Term Operating Assets: Acquisition, Cost Allocation, and Derecognition
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Chapter 12: Long-Term Operating Assets: Departures from Historical Cost
Chapter 16: Investments in Financial Assets

PART IV: LIABILITIES AND EQUITY
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Chapter 13: Operating Liabilities and Contingencies
Chapter 14: Financing Liabilities
Chapter 15: Accounting for Stockholders' Equity

PART V: SPECIAL ACCOUNTING TOPICS
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Chapter 17: Accounting for Income Taxes
Chapter 18: Accounting for Leases
Chapter 19: Accounting for Employee Compensation and Benefits
Chapter 20: Earnings per Share
Chapter 21: Accounting Changes and Error Analysis
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Chapter 22: The Statement of Cash Flows

, Intermediate Accounting, 3e (Gordon/Raedy/Sannella)
Chapter 1 The Financial Reporting Environment

1.1 Overview of Financial Reporting
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1) The financial reporting process generates three basic financial statements.
Answer: FALSE
Diff: 1
Objective: 1.1
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IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge

2) The demand for financial information is based on market participant demand.
Answer: TRUE
Diff: 1
Objective: 1.1
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IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge

3) Managers of economic entities are best considered to be users of financial information.
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Answer: FALSE
Diff: 1
Objective: 1.1
IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge
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4) Managers of economic entities are best considered to be preparers of financial information.
Answer: TRUE
Diff: 1
Objective: 1.1
IFRS/GAAP: GAAP/IFRS
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AACSB: Application of knowledge

5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly traded
companies.
Answer: TRUE
Diff: 2
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Objective: 1.1
IFRS/GAAP: GAAP
AACSB: Application of knowledge

6) The FASB gives the SEC authority to regulate accounting for publicly traded companies.
Answer: FALSE
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Diff: 1
Objective: 1.1
IFRS/GAAP: GAAP
AACSB: Application of knowledge




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, 7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards and
oversees the audits of public companies in the United States.
Answer: FALSE
Diff: 1
Objective: 1.1
IFRS/GAAP: GAAP
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AACSB: Application of knowledge

8) Financial accounting standards influence the behavior of managers and other internal users.
Answer: TRUE
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Diff: 2
Objective: 1.1
IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge

9) Theories and procedures that evolve as a result of lobbying from various groups are examples of
proactive factors within the legal, economic, political, and social environment.
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Answer: FALSE
Diff: 1
Objective: 1.1
IFRS/GAAP: GAAP/IFRS
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AACSB: Application of knowledge

10) Financial information includes information that is not governed by rules set forth by the accounting
standard-setting bodies.
Answer: TRUE
Diff: 1
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Objective: 1.1
IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge

11) What is the term that describes the process of identifying, measuring, and communicating financial
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information about an economic entity to various user groups?
A) financial reporting
B) accounting standard setting
C) financial statement
D) financial accounting
Answer: D
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Diff: 2
Objective: 1.1
IFRS/GAAP: GAAP/IFRS
AACSB: Application of knowledge
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