TEST BANK - Intermediate Accounting, 3rd Edition by Elizabeth A. Gordon, Jana S. Raedy, All Chapters 1 - 22, Complete Newest Version

Test zBank zfor zIntermediate zAccounting, z3rd zEdition zby zElizabeth zA.
zGordon




✅
Intermediate zAccounting, z3e z(Gordon/Raedy/Sannella)
All zChapters
Chapter z1 The zFinancial zReporting zEnvironment

1.1 Overview zof zFinancial zReporting

1) The zfinancial zreporting zprocess zgenerates zthree zbasic zfinancial
zstatements.zAnswer: z FALSE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

2) The zdemand zfor zfinancial zinformation zis zbased zon zmarket zparticipant
zdemand.zAnswer: z TRUE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

3) Managers zof zeconomic zentities zare zbest zconsidered zto zbe zusers zof zfinancial
zinformation.zAnswer: z FALSE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

4) Managers zof zeconomic zentities zare zbest zconsidered zto zbe zpreparers zof zfinancial
zinformation.zAnswer: z TRUE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

5) The zSecurities zand zExchange zCommission z(SEC) zregulates zfinancial zreporting zfor
zpublicly ztradedzcompanies.
Answer: z TRUE
Diff: z2
Objective: z1.1
zIFRS/GAAP: z GAAP
AACSB: z Application zof zknowledge

6) The zFASB zgives zthe zSEC zauthority zto zregulate zaccounting zfor zpublicly ztraded
zcompanies.zAnswer: z FALSE
Diff: z1
Objective: z1.1
zIFRS/GAAP: z GAAP
1

,AACSB: z Application zof zknowledge




2

,7) The zPublic zCompany zAccounting zOversight zBoard z(PCAOB) zsets zfinancial zaccounting
zstandards zandzoversees zthe zaudits zof zpublic zcompanies zin zthe zUnited zStates.
Answer: z FALSE
Diff: z1
Objective: z1.1
zIFRS/GAAP: z GAAP
AACSB: z Application zof zknowledge

8) Financial zaccounting zstandards zinfluence zthe zbehavior zof zmanagers zand zother
zinternal zusers.zAnswer: z TRUE
Diff: z2
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

9) Theories zand zprocedures zthat zevolve zas za zresult zof zlobbying zfrom zvarious zgroups zare
zexamples zofzproactive zfactors zwithin zthe zlegal, zeconomic, zpolitical, zand zsocial zenvironment.
Answer: z FALSE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

10) Financial zinformation zincludes zinformation zthat zis znot zgoverned zby zrules zset zforth zby zthe
zaccountingzstandard-setting zbodies.
Answer: z TRUE
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

11) What zis zthe zterm zthat zdescribes zthe zprocess zof zidentifying, zmeasuring, zand
zcommunicating zfinancialzinformation zabout zan zeconomic zentity zto zvarious zuser zgroups?
A) financial zreporting
B) accounting zstandard zsetting
C) financial zstatement
D) financial
zaccountingzAnswer:
zD
Diff: z2
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge




3

, 12) Which zelement zof zfinancial zaccounting zinvolves zidentifying zthe zindividuals zwho zdemand
zfinancialzinformation?
A) financial zinformation
B) economic zentity
C) user zgroups
D) legal, zeconomic, zpolitical, zand zsocial
zenvironmentzAnswer: z C
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

13) Which zof zthe zfollowing zis znot zone zof zthe zfour zbasic zfinancial zstatements?
A) balance zsheet
B) trial zbalance
C) cash zflows zstatement
D) statement zof zcomprehensive
zincomezAnswer: z B
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

14) Which zorganization zis zresponsible zfor zpromulgating zU.S. zGAAP?
A) Financial zAccounting zStandards zBoard
B) Public zCompany zAccounting zOversight zBoard
C) International zAccounting zStandards zBoard
D) Securities zand zExchange
zCommissionzAnswer: z A
Diff: z1
Objective: z z z1.1
zIFRS/GAAP:
z GAAP/IFRS
AACSB: z Application zof zknowledge

15) Which zorganization zis zresponsible zfor zsetting zauditing zstandards zand zoverseeing zthe zaudits
zof zpubliczcompanies zin zthe zUnited zStates?
A) Financial zAccounting zStandards zBoard
B) Public zCompany zAccounting zOversight zBoard
C) American zInstitute zof zCertified zPublic zAccountants
D) Securities zand zExchange
zCommissionzAnswer: z B
Diff: z1
Objective: z1.1
zIFRS/GAAP: z GAAP
AACSB: z Application zof zknowledge




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