SDSU ACCTG 326 Chapter 1 ACTUAL UPDATED QUESTIONS AND
CORRECT ANSWERS
Most members of the financial community recognize useful
generally accepted accounting principles as
Information in financial statements is used to make buying, selling, or holding equity and debt instruments, and providing or settling
decisions about loans and other forms of credit.
Investors would be interested in which of the following Both assessing the company's ability to generate net cash inflows and assessing
when making decisions? management's ability to protect and enhance the capital provider's investments.
The objective of financial reporting is to provide information about the reporting entity that is useful to present and
potential equity investors, lenders, and other creditors.
Effective capital allocation is related to encouraging innovation, providing an efficient market for buying and selling
securities, promoting productivity
If a foreign company wants to trade shares in U.S. False.
markets, they are required to comply with U.S. GAAP.
Financial statements that are provided only quarterly are do not provide up-to-date financial information.
often problematic because they
If politics plays too large of a role in accounting standard Accounting standards that are not truly generally accepted.
setting, what danger is likely to occur?
Which of the following is inaccurate statement about the It covers all transactions and events.
CRS?
, Which of the following is true about the Securities and The SEC coordinates with the AICPA in establishing accounting standards.
Exchange Commission's role in accounting standard
setting in the United States?
Financial reports often lack________ because large understandability
businesses often have complex financial dealings and the
reports require the use of technical language.
How are the investing public and the financial community Both influence the formation of GAAP.
similar to one another?
Financial reports have failed to provide much information True.
about a company's soft assets (intangibles).
In response to concerns about reporting nonfinancial sustainability efforts.
information, some companies are preparing reports on
the company's
The Sarbanes-Oxley Act was passed due to the Scandals
occurrence of accounting _____ at a number of large
companies.
Ethical decisions are made more difficult because there is no comprehensive system to provide guidelines.
The Public Company Accounting Oversight Board is overseeing the development of financial auditing standards.
responsible for
The national professional organization of practicing The national professional organization of practicing Certified Public Accountants
Certified Public Accountants is the is the
________ are not considered to be GAAP documents. Pronouncements issued by the SEC
Which of the following is a difference between the All members of the FASB are fully remunerated, serve full time, and are
Financial Accounting Standards Board and the independent of any companies or institutions.
Accounting Principles Board?
Which of the following works to provide online access to the CRS
the Codification in the form of a database?
Which of the following would be inaccurately described APB Technical Bulletins
as a document included in GAAP?
Having a reduced role in issuing accounting standards for AICPA; FASB.
public companies was one way that the role of the ________
changed after the establishment of the ________
Which of the following is an inaccurate expectation of the To create multiple levels of GAAP
codification?
Accountants often have to choose between allowable alternatives.
CORRECT ANSWERS
Most members of the financial community recognize useful
generally accepted accounting principles as
Information in financial statements is used to make buying, selling, or holding equity and debt instruments, and providing or settling
decisions about loans and other forms of credit.
Investors would be interested in which of the following Both assessing the company's ability to generate net cash inflows and assessing
when making decisions? management's ability to protect and enhance the capital provider's investments.
The objective of financial reporting is to provide information about the reporting entity that is useful to present and
potential equity investors, lenders, and other creditors.
Effective capital allocation is related to encouraging innovation, providing an efficient market for buying and selling
securities, promoting productivity
If a foreign company wants to trade shares in U.S. False.
markets, they are required to comply with U.S. GAAP.
Financial statements that are provided only quarterly are do not provide up-to-date financial information.
often problematic because they
If politics plays too large of a role in accounting standard Accounting standards that are not truly generally accepted.
setting, what danger is likely to occur?
Which of the following is inaccurate statement about the It covers all transactions and events.
CRS?
, Which of the following is true about the Securities and The SEC coordinates with the AICPA in establishing accounting standards.
Exchange Commission's role in accounting standard
setting in the United States?
Financial reports often lack________ because large understandability
businesses often have complex financial dealings and the
reports require the use of technical language.
How are the investing public and the financial community Both influence the formation of GAAP.
similar to one another?
Financial reports have failed to provide much information True.
about a company's soft assets (intangibles).
In response to concerns about reporting nonfinancial sustainability efforts.
information, some companies are preparing reports on
the company's
The Sarbanes-Oxley Act was passed due to the Scandals
occurrence of accounting _____ at a number of large
companies.
Ethical decisions are made more difficult because there is no comprehensive system to provide guidelines.
The Public Company Accounting Oversight Board is overseeing the development of financial auditing standards.
responsible for
The national professional organization of practicing The national professional organization of practicing Certified Public Accountants
Certified Public Accountants is the is the
________ are not considered to be GAAP documents. Pronouncements issued by the SEC
Which of the following is a difference between the All members of the FASB are fully remunerated, serve full time, and are
Financial Accounting Standards Board and the independent of any companies or institutions.
Accounting Principles Board?
Which of the following works to provide online access to the CRS
the Codification in the form of a database?
Which of the following would be inaccurately described APB Technical Bulletins
as a document included in GAAP?
Having a reduced role in issuing accounting standards for AICPA; FASB.
public companies was one way that the role of the ________
changed after the establishment of the ________
Which of the following is an inaccurate expectation of the To create multiple levels of GAAP
codification?
Accountants often have to choose between allowable alternatives.
