TEST BANK FOR Intermediate Accounting 3rd Edition by Elizabeth A Gordon ISBN: 978-0136946694 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

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




1) The financial reporting process generates three basic financial statements.
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Answer: FALSE z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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2) The demand for financial information is based on market participant demand.
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Answer: TRUE z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl


P: GAAP/IFRS
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AACSB: Application of knowledge
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3) Managers of economic entities are best considered to be users of financial information.
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Answer: FALSE z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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4) Managers of economic entities are best considered to be preparers of financial information.
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Answer: TRUE z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly traded
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companies.
Answer: TRUE z l z l



Diff: 2 zl



Objective: 1.1 IFRS/GAA z l zl



P: GAAP
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AACSB: Application of knowledge
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6) The FASB gives the SEC authority to regulate accounting for publicly traded companies.
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Answer: FALSE z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP
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AACSB: Application of knowledge
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Copyright © 2022 Pearson Education, Inc.
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,7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards and
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oversees the audits of public companies in the United States.
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Answer: FALSE z l z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP
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AACSB: Application of knowledge
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8) Financial accounting standards influence the behavior of managers and other internal users.
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Answer: TRUE z l



Diff: 2 zl


Objective: 1.1 IFRS/GAA z l zl



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



Diff: 1 zl



Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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10) Financial information includes information that is not governed by rules set forth by the accounting s
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tandard-setting bodies. zl



Answer: TRUE z l z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl


P: GAAP/IFRS
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AACSB: Application of knowledge
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11) What is the term that describes the process of identifying, measuring, and communicating financial i
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nformation about an economic entity to various user groups?
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A) financial reporting zl



B) accounting standard setting zl zl



C) financial statement zl



D) financial accounting zl z



Answer: D
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Diff: 2 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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2
Copyright © 2022 Pearson Education, Inc.
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, 12) Which element of financial accounting involves identifying the individuals who demand financial i
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nformation?
A) financial information zl



B) economic entity zl



C) user groups zl



D) legal, economic, political, and social environment
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Answer: C z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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13) Which of the following is not one of the four basic financial statements?
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A) balance sheet zl



B) trial balance
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C) cash flows statement
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D) statement of comprehensive income zl zl zl zl



Answer: B z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board zl zl zl



B) Public Company Accounting Oversight Board
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C) International Accounting Standards Board zl zl zl



D) Securities and Exchange Commission zl zl zl zl



Answer: A z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP/IFRS
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AACSB: Application of knowledge
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15) Which organization is responsible for setting auditing standards and overseeing the audits of public
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companies in the United States? zl zl zl zl



A) Financial Accounting Standards Board zl zl zl



B) Public Company Accounting Oversight Board
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C) American Institute of Certified Public Accountants zl zl zl zl zl



D) Securities and Exchange Commission zl zl zl zl



Answer: B z l



Diff: 1 zl


Objective: 1.1 IFRS/GAA z l zl



P: GAAP
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AACSB: Application of knowledge
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