Intermediate Accounting Final Exam Questions and answers with Complete Solutions

Which need is the primary influence on the demand for financial information? - The need for user groups to make decisions regarding resource allocation Which organization is responsible for the oversight, financing, and administration of all accounting standard setting organizations in the US? - Financial Accounting Foundation (FAF) Three organizations that set financial accounting standards for US companies? - Committee on Accounting Procedures (CAP), Accounting Principles Board (APB), and Financial Accounting Standards Board (FASB) Statement that correctly identifies accounting standard setters. - The FASB promulgates accounting standards in the US and the IASB issues international accounting standards. Which type of standard relies on theories and concepts that are linked to a well-developed theoretical framework? - Principles-based standard Which of the following is a characteristic of rule-based standards? - Result in inconsistencies between standards The conceptual framework assists with... - the development of a set of standards which ensure that financial reports meet the needs of investors and creditorsIn conceptual framework, what are the two types of qualitative characteristics of financial reporting? - Fundamental and enhancing