Test Bank for Intermediate Accounting 18th Edition by Kieso, Weygandt and Warfield, ISBN: 9781119790976, All 23 Chapters Covered, Verified Latest Edition

TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete

,Table of Contents
u u


1uTheuEnvironmentuanduConceptualuFrameworkuofuFinancialuReporting

2uTheuAccountinguInformationuSystem

3uIncomeuStatement,uRelateduInformation,uanduRevenueuRecognition

4uBalanceuSheetuanduStatementuofuCashuFlows

5uAccountinguandutheuTimeuValueuofuMoney

6uCashuanduReceivables

7uValuationuofuInventories:uAuCost-BasisuApproach

8uInventories:uAdditionaluValuationuIssues

9uAcquisitionuanduDispositionuofuProperty,uPlant,uanduEquipment

10uDepreciation,uImpairments,uanduDepletion

11uIntangibleuAssets

12uCurrentuLiabilitiesuanduContingencies

13uLong-TermuLiabilities

14uStockholders’uEquity

15uDilutiveuSecuritiesuanduEarningsuperuShare

16uInvestments

17uRevenueuRecognition

18uAccountinguforuIncomeuTaxes

19uAccountinguforuPensionsuanduPostretirementuBenefits

20uAccountinguforuLeases

21uAccountinguChangesuanduErroruAnalysis

22uStatementuofuCashuFlows

23uFulluDisclosureuinuFinancialuReportingu

, CHAPTER 1 u




THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK
u u u u u



OF FINANCIAL REPORTING u u




IFRSuquestionsuareuavailableuatutheuenduofuthisuchapter.


TRUE-FALSE—Conceptual
1. Financialustatementsuareutheuprincipalumeansuthroughuwhichuaucompanyucommunicatesuitsufin
ancialuinformationutouthoseuoutsideuit.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

2. Usersu ofu financialu reportsu ofu au companyu useu theu informationu providedu byu theseu reportsu tou
makeucapitaluallocationudecisions.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

3. Anueffectiveuprocessuofucapitaluallocationuprovidesuanuefficientumarketuforubuyinguandusellingus
ecuritiesuanduobtaininguandugrantingucredit.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

4. Investorsuareuinteresteduinufinancialureportingubecauseuituprovidesuinformationuthatuisuusefulufo
rumakingudecisions.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

5. Usersu ofu financialu accountingu statementsu haveu bothu coincidingu andu conflictingu needsu forui
nformationuofuvariousutypes.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

6. AlthoughutheuFASBuhasudevelopeduauconceptualuframework,unouStatementsuofuFinancialuAcc
ountinguConceptsuhaveubeenuissuedutoudate.
Ans:uF,uLO:u1,uBloom:uK,uDifficulty:uModerate,uMin:u1,uAACSB:uKnowledge,uAICPAuBC:uNone,uAICPAuAC:uReporting,uAICPAuPC:uNone,uIMA:uReporti
ngu&u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

7. TheupassageuofuaunewuFASBuAccountinguStandardsuUpdateurequiresutheusupportuofufiveuofu th
eusevenuboardumembers.
Ans:u F,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

8. StatementsuofuFinancialuAccountinguConceptsusetuforthufundamentaluobjectivesuandu concepts
uthatuareuusedubyutheuFASBuinudevelopingufutureustandardsuof ufinancialuaccountinguandureporti

ng.
Ans:u T,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

9. TheuFASB’suCodificationucreatesuaunewusetuofuGAAP.
Ans:u F,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Report
ingu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

, 1u-u2 TestuBankuforuIntermediateuAccounting,uEighteenthuEdition

10. Theuobjectiveuofufinancialureportinguisutoureportutheuplansumadeubyuaucompanyutouimproveutheu
productivityuofuitsuemployees.
Ans:u F,u LO:u 1,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuPreparation,uIFRS:uNone

11. Au soundlyu developedu conceptualu frameworku enablesu theu FASBu tou issueu moreu usefulu andu
consistentupronouncementsuoverutime.
Ans:u T,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

12. Auconceptualuframeworkuisuaucoherentusystemuofuconceptsuthatuflowufromuanuobjective.
Ans:u T,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

13. Theu firstu levelu ofu theu conceptualu frameworku identifiesu theu recognition,u measurement,u andu
disclosureuconceptsuuseduinuestablishinguaccountingustandards.
Ans:u F,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone


14. Theuobjectiveuofufinancialureportinguservesuasutheufoundationuofutheuconceptualuframework.
Ans:u T,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

15. Usersuofufinancialustatementsuareuassumedutouneedunouknowledgeuofubusinessuandufinancialu
accountingumattersutouunderstandutheuinformationucontaineduinufinancialustatements.
Ans:u F,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

16. Relevanceu andu faithfulu representationu areu theu twou fundamentalu qualitiesu thatu makeua
ccountinguinformationuusefuluforudecision-making.
Ans:u T,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

17. Theuideauofuconsistencyudoesunotumeanuthatucompaniesucannotuswitchufromuoneuaccountingu
methodutouanother.
Ans:uT,uLO:u2,uBloom:uC,uDifficulty:uModerate,uMin:u1,uAACSB:uKnowledge,uAICPAuBC:uNone,uAICPAuAC:uReporting,uAICPAuPC:uNone,uIMA:uReporting
u&u Control:uFinancialuStatementuAnalysis,uIFRS:uNone


18. Timelinessuanduneutralityuareutwouingredientsuofurelevance.
Ans:u F,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

19. Verifiabilityuandupredictiveuvalueuareutwouingredientsuofufaithfulurepresentation.
Ans:u F,u LO:u 2,u Bloom:u K,u Difficulty:u Easy,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Reporting,u AICPAu PC:u None,u IMA:u Reportin
gu &u Control:uFinancialuStatementuAnalysis,uIFRS:uNone

20. Revenues,ugains,uandudistributionsutouownersualluincreaseuequity.
Ans:u F,u LO:u 2,u Bloom:u C,u Difficulty:u Moderate,u Min:u 1,u AACSB:u Knowledge,u AICPAu BC:u None,u AICPAu AC:u Measurementu Analysisu andu Interpretati
on,u AICPAuPC:uNone,uIMA:uReportingu&uControl:uFinancialuStatementuAnalysis,uIFRS:uNone

21. Comprehensiveu incomeu includesu allu changesu inu equityu duringu au periodu exceptu thoseu
resultingufromuinvestmentsubyuownersuandudistributionsutouowners.
Ans:uT,uLO:u2,uBloom:uK,uDifficulty:uEasy,uMin:u1,uAACSB:uKnowledge,uAICPAuBC:uNone,uAICPAuAC:uMeasurementuAnalysisuanduInterpretation,uAIC
PAu PC:uNone,uIMA:uReportingu&uControl:uFinancialuStatementuAnalysis,uIFRS:uNone