ACCT 5321 (2026-2027) QUESTIONS AND ANSWERS
(PRACTICE QUESTIONS) WITH SOLUTIONS LATEST |
ALREADY GRADED A+|NEW!
What two pieces of information are missing from the following guidance citation?
Per FASB Concepts Statement No.6, assets are defined as "..probable future
economic benefits obtained or controlled by a particular entity as a result of past
transactions or events."
Select one or more:
a. Paragraph number
b Name of standard
c Section number
d Date of publication - ANSWER-a
b
The FASB Concepts Statements (CONs) are also known as (Select two):
Select one or more:
a. The Conceptual Framework
b. The Conceptual Foundation
c. Statements of Financial Accounting Concepts (SFAC) - ANSWER-a
c
What are two main purposes/uses of the FASB Concepts Statements ?
Select one or more:
,a. To set forth a common framework, for the Board's use in guiding the
development of new standards.
b. To interpret and provide illustrative examples for complex or nuanced guidance
in the Codification.
c. For use by practitioners, as a set of principles to consider in preparing financial
statements.
d. Guidance from these Concepts Statements was used to populate the Codification
and can now be referred to as a nonauthoritative pre-Codification source. -
ANSWER-a
c
Based on your understanding of the FASB's Concepts Statements, which of the
following statements would you not expect to have come from the Concepts
Statements?
a. "The primary objective of general purpose financial reporting is to provide
information that is useful to users."
b. Assets are defined as "probable future economic benefits..."
c. Expenses are defined as "outflows or other using up of assets or incurrences of
liabilities..."
d. "An entity shall initially recognize the financial statement effects of a tax
position when it is more likely than not..." - ANSWER-d
CON 6 may be useful for which of the following?
a. Determining whether a cost meets the definition of "asset"
b. Offering current viewpoints on recent FASB guidance
c. Evaluating present value measurement issues
d. Benchmarking against other public companies' disclosures - ANSWER-a
, Is it acceptable to cite from accounting firm guide books, in your technical
documentation?
a. Yes, but only if used to supplement authoritative resources, such as to offer
additional interpretation.
b. Yes, but any guidance that can be used from the Codification (such as definitions
of key terms) should be taken from the Codification directly, not from the guide
book.
c. Yes, but care should be taken to ensure that the guide book you are reviewing is
current (not outdated).
d. All of the answers are correct - ANSWER-d
Which of the following are nonauthoritative sources of guidance for a U.S.
accounting issue?
a. Basis for conclusions to standards
b. AICPA resources
c. IFRS
d. Peer benchmarking
e. SEC comment letters
f. Accounting Standards Updates
g. All answers are correct
h. All except IFRS and Accounting Standards Updates are correct - ANSWER-g
What two pieces of information are missing from the following citation? Deloitte's
publication, A Roadmap to Accounting for Income Taxes, states: "When disclosing
gross DTAs and DTLs, an entity should separately disclose deductible and taxable
temporary differences."
(PRACTICE QUESTIONS) WITH SOLUTIONS LATEST |
ALREADY GRADED A+|NEW!
What two pieces of information are missing from the following guidance citation?
Per FASB Concepts Statement No.6, assets are defined as "..probable future
economic benefits obtained or controlled by a particular entity as a result of past
transactions or events."
Select one or more:
a. Paragraph number
b Name of standard
c Section number
d Date of publication - ANSWER-a
b
The FASB Concepts Statements (CONs) are also known as (Select two):
Select one or more:
a. The Conceptual Framework
b. The Conceptual Foundation
c. Statements of Financial Accounting Concepts (SFAC) - ANSWER-a
c
What are two main purposes/uses of the FASB Concepts Statements ?
Select one or more:
,a. To set forth a common framework, for the Board's use in guiding the
development of new standards.
b. To interpret and provide illustrative examples for complex or nuanced guidance
in the Codification.
c. For use by practitioners, as a set of principles to consider in preparing financial
statements.
d. Guidance from these Concepts Statements was used to populate the Codification
and can now be referred to as a nonauthoritative pre-Codification source. -
ANSWER-a
c
Based on your understanding of the FASB's Concepts Statements, which of the
following statements would you not expect to have come from the Concepts
Statements?
a. "The primary objective of general purpose financial reporting is to provide
information that is useful to users."
b. Assets are defined as "probable future economic benefits..."
c. Expenses are defined as "outflows or other using up of assets or incurrences of
liabilities..."
d. "An entity shall initially recognize the financial statement effects of a tax
position when it is more likely than not..." - ANSWER-d
CON 6 may be useful for which of the following?
a. Determining whether a cost meets the definition of "asset"
b. Offering current viewpoints on recent FASB guidance
c. Evaluating present value measurement issues
d. Benchmarking against other public companies' disclosures - ANSWER-a
, Is it acceptable to cite from accounting firm guide books, in your technical
documentation?
a. Yes, but only if used to supplement authoritative resources, such as to offer
additional interpretation.
b. Yes, but any guidance that can be used from the Codification (such as definitions
of key terms) should be taken from the Codification directly, not from the guide
book.
c. Yes, but care should be taken to ensure that the guide book you are reviewing is
current (not outdated).
d. All of the answers are correct - ANSWER-d
Which of the following are nonauthoritative sources of guidance for a U.S.
accounting issue?
a. Basis for conclusions to standards
b. AICPA resources
c. IFRS
d. Peer benchmarking
e. SEC comment letters
f. Accounting Standards Updates
g. All answers are correct
h. All except IFRS and Accounting Standards Updates are correct - ANSWER-g
What two pieces of information are missing from the following citation? Deloitte's
publication, A Roadmap to Accounting for Income Taxes, states: "When disclosing
gross DTAs and DTLs, an entity should separately disclose deductible and taxable
temporary differences."
