ACCT 3311 Exam 1 questions with |\ |\ |\ |\ |\ |\
answers
Which organization is responsible for setting auditing
|\ |\ |\ |\ |\ |\ |\
standards and overseeing the audits of public companies
|\ |\ |\ |\ |\ |\ |\ |\
in the United States? - CORRECT ANSWERS ✔✔Public
|\ |\ |\ |\ |\ |\ |\ |\
Company Accounting Oversight Board (PCAOB) |\ |\ |\ |\
Financial accounting provides information that enables
|\ |\ |\ |\ |\ |\
users to evaluate economic entities and make efficient
|\ |\ |\ |\ |\ |\ |\ |\
_________________ decisions based on the risks and returns |\ |\ |\ |\ |\ |\ |\
of a particular investment. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔resource allocation |\
Published financial statements are called |\ |\ |\ |\ |\
___________________ because they provide information to a |\ |\ |\ |\ |\ |\ |\
wide spectrum of user groups: investors, creditors,
|\ |\ |\ |\ |\ |\ |\
financial analysts, customers, employees, competitors,
|\ |\ |\ |\ |\
suppliers, unions, and government agencies. - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔general purpose |\ |\
The ________ is the organization is responsible for
|\ |\ |\ |\ |\ |\ |\ |\
promulgating U.S. GAAP. - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔Financial Accounting Standards Board (FASB) |\ |\ |\ |\
, The primary purpose of the conceptual framework is to
|\ |\ |\ |\ |\ |\ |\ |\ |\
provide guidance to ________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔standard setters |\
During the standard-setting process, a(n) ________ is
|\ |\ |\ |\ |\ |\ |\
issued by the FASB to solicit input from financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
statement preparers, auditors, and other users of |\ |\ |\ |\ |\ |\ |\
financial statements. - CORRECT ANSWERS ✔✔exposure
|\ |\ |\ |\ |\ |\
draft
________ standards rely on theories and concepts that are
|\ |\ |\ |\ |\ |\ |\ |\ |\
linked to a well-developed theoretical framework. -
|\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Principles-based |\ |\
Standard setting have shifted toward the asset/liability
|\ |\ |\ |\ |\ |\ |\
approach indicates that the ________ is implicitly
|\ |\ |\ |\ |\ |\ |\
considered the dominant financial statement. - CORRECT |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Statement of financial position (balance
|\ |\ |\ |\ |\ |\
sheet)
Which of the following is not a reason why an accountant
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in the United States should learn international accounting
|\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔Reasons: U.S. |\ |\ |\ |\ |\ |\
companies operate subsidiaries outside of the United |\ |\ |\ |\ |\ |\ |\
States which report under IFRS in their home countries.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The SEC permits the use of IFRS-based financial
|\ |\ |\ |\ |\ |\ |\ |\
statements by international companies with shares |\ |\ |\ |\ |\ |\
answers
Which organization is responsible for setting auditing
|\ |\ |\ |\ |\ |\ |\
standards and overseeing the audits of public companies
|\ |\ |\ |\ |\ |\ |\ |\
in the United States? - CORRECT ANSWERS ✔✔Public
|\ |\ |\ |\ |\ |\ |\ |\
Company Accounting Oversight Board (PCAOB) |\ |\ |\ |\
Financial accounting provides information that enables
|\ |\ |\ |\ |\ |\
users to evaluate economic entities and make efficient
|\ |\ |\ |\ |\ |\ |\ |\
_________________ decisions based on the risks and returns |\ |\ |\ |\ |\ |\ |\
of a particular investment. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔resource allocation |\
Published financial statements are called |\ |\ |\ |\ |\
___________________ because they provide information to a |\ |\ |\ |\ |\ |\ |\
wide spectrum of user groups: investors, creditors,
|\ |\ |\ |\ |\ |\ |\
financial analysts, customers, employees, competitors,
|\ |\ |\ |\ |\
suppliers, unions, and government agencies. - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔general purpose |\ |\
The ________ is the organization is responsible for
|\ |\ |\ |\ |\ |\ |\ |\
promulgating U.S. GAAP. - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔Financial Accounting Standards Board (FASB) |\ |\ |\ |\
, The primary purpose of the conceptual framework is to
|\ |\ |\ |\ |\ |\ |\ |\ |\
provide guidance to ________. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔standard setters |\
During the standard-setting process, a(n) ________ is
|\ |\ |\ |\ |\ |\ |\
issued by the FASB to solicit input from financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
statement preparers, auditors, and other users of |\ |\ |\ |\ |\ |\ |\
financial statements. - CORRECT ANSWERS ✔✔exposure
|\ |\ |\ |\ |\ |\
draft
________ standards rely on theories and concepts that are
|\ |\ |\ |\ |\ |\ |\ |\ |\
linked to a well-developed theoretical framework. -
|\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Principles-based |\ |\
Standard setting have shifted toward the asset/liability
|\ |\ |\ |\ |\ |\ |\
approach indicates that the ________ is implicitly
|\ |\ |\ |\ |\ |\ |\
considered the dominant financial statement. - CORRECT |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Statement of financial position (balance
|\ |\ |\ |\ |\ |\
sheet)
Which of the following is not a reason why an accountant
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in the United States should learn international accounting
|\ |\ |\ |\ |\ |\ |\ |\
standards? - CORRECT ANSWERS ✔✔Reasons: U.S. |\ |\ |\ |\ |\ |\
companies operate subsidiaries outside of the United |\ |\ |\ |\ |\ |\ |\
States which report under IFRS in their home countries.
|\ |\ |\ |\ |\ |\ |\ |\ |\
The SEC permits the use of IFRS-based financial
|\ |\ |\ |\ |\ |\ |\ |\
statements by international companies with shares |\ |\ |\ |\ |\ |\
