INTERMEDIATE ACCOUNTING ONE MIDTERM EXAMINATION ACTUAL TEST PAPER
QUESTIONS CORRECT ANSWERS GRADED A PLUS
⩥GAAP (Generally Accepted Accounting Principles). Answer: set of
both broad and specific guidelines that companies should follow when
measuring and reporting the information in their financial statements and
related notes
⩥SEC (Securities and Exchange Commission) *. Answer: responsible
for setting accounting and reporting standards for companies whose
securities are publicly traded
⩥FASB (Financial Accounting Standards Board) *. Answer: the body
responsible for promulgating U.S. GAAP; currently issues Accounting
Standards Updates
⩥IASB (International Accounting Standards Board). Answer: objectives
are to develop a single set of high-quality understandable global
accounting standards, to promote the use of those standards, and to bring
about the convergence of national accounting standards and international
accounting standards
, ⩥IFRS (International Financial Reporting Standards). Answer:
developed by the IASB and used by more than 100 countries
⩥PCAOB (Public Company Accounting Oversight) *. Answer: set
auditing standards and oversees the audits of public companies in the US
⩥AICPA (American Institute of Certified Public Accountants) *.
Answer: professional organization; involved in the financial reporting
process; the national professional association for certifies public
accountants in the US; prepares and grades the uniform CPA exam;
supports accounting professionals throughout their careers by providing
training, professional skills development, and other resources
⩥EITF (Emerging Issues Task Force) *. Answer: formed in 1984 to
assist the FASB by addressing issues that are not as broad in scope as
those found on the FASB's agenda-agenda often includes industry-
specific items; made up of 13 representatives, including preparers,
auditors, and financial statement users
⩥PCC (Private Company Council). Answer: established in 2012 to set
accounting standards for US private companies
⩥seven-step process FASB follows. Answer: Step 1: Identification of an
issue
Step 2: Decision to pursue
QUESTIONS CORRECT ANSWERS GRADED A PLUS
⩥GAAP (Generally Accepted Accounting Principles). Answer: set of
both broad and specific guidelines that companies should follow when
measuring and reporting the information in their financial statements and
related notes
⩥SEC (Securities and Exchange Commission) *. Answer: responsible
for setting accounting and reporting standards for companies whose
securities are publicly traded
⩥FASB (Financial Accounting Standards Board) *. Answer: the body
responsible for promulgating U.S. GAAP; currently issues Accounting
Standards Updates
⩥IASB (International Accounting Standards Board). Answer: objectives
are to develop a single set of high-quality understandable global
accounting standards, to promote the use of those standards, and to bring
about the convergence of national accounting standards and international
accounting standards
, ⩥IFRS (International Financial Reporting Standards). Answer:
developed by the IASB and used by more than 100 countries
⩥PCAOB (Public Company Accounting Oversight) *. Answer: set
auditing standards and oversees the audits of public companies in the US
⩥AICPA (American Institute of Certified Public Accountants) *.
Answer: professional organization; involved in the financial reporting
process; the national professional association for certifies public
accountants in the US; prepares and grades the uniform CPA exam;
supports accounting professionals throughout their careers by providing
training, professional skills development, and other resources
⩥EITF (Emerging Issues Task Force) *. Answer: formed in 1984 to
assist the FASB by addressing issues that are not as broad in scope as
those found on the FASB's agenda-agenda often includes industry-
specific items; made up of 13 representatives, including preparers,
auditors, and financial statement users
⩥PCC (Private Company Council). Answer: established in 2012 to set
accounting standards for US private companies
⩥seven-step process FASB follows. Answer: Step 1: Identification of an
issue
Step 2: Decision to pursue
