Test Bank for Financial Statement Analysis 13th Edition By Charles H. Gibson (All Chapters, 100% Original Verified, A+ Grade)

This is Test Bank zip file. PDF file is giving error in upload, thats why zip file is added. Check Sample Preview: CHAPTER 1—INTRODUCTION TO FINANCIAL REPORTING MULTIPLE CHOICE 1. Charging off equipment that cost less than $20 would be an example of the application of: a. going concern. b. cost. c. matching. d. materiality. e. realization. ANS: D PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 2. The going concern assumption: a. is applicable to all financial statements. b. primarily involves periodic income measurement. c. allows for the statements to be prepared under generally accepted accounting principles. d. requires that accounting procedures be the same from period to period. e. none of the answers are correct. ANS: C PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 3. Understating assets and revenues is justified based on: a. realization assumption. b. matching. c. consistency. d. realization. e. None of the answers are correct. ANS: E PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 4. The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is: a. time period. b. business entity. c. historical cost. d. transaction. e. None of the answers are correct. ANS: A PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis Financial Statement Analysis, 13e Charles H. Gibson (Test Bank All Chapters, 100% Original Verified, A+ Grade) TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 5. Valuing assets at their liquidation values is not consistent with: a. conservatism. b. materiality. c. going concern. d. time period. e. None of the answers are correct. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 6. The business being separate and distinct from the owners is an integral part of the: a. time period assumption. b. going concern assumption. c. business entity assumption. d. realization assumption. e. None of the answers are correct. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 7. The principle that assumes the reader of the financial statements is not interested in the liquidation values is: a. conservatism. b. matching. c. time period. d. realization. e. None of the answers are correct. ANS: E PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 8. An accounting period that ends when operations are at a low ebb is: a. a calendar year. b. a fiscal year. c. the natural business year. d. an operating year. e. None of the answers are correct. ANS: C PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 9. The accounting principle that assumes that inflation will not take place or will be immaterial is: a. monetary unit. b. historical cost. c. realization. d. going concern. e. None of the answers are correct. ANS: A PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge NOT: Time: 1 min. 10. Valuing inventory at the lower of cost or market is an application of the: a. time period assumption. b. realization principle. c. going concern principle. d. conservatism principle. e. None of the answers are correct. ANS: D PTS: 1 DIF: Difficulty: Easy NAT: BUSPROG: Communication STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge