Test Bank for Intermediate Accounting 18th Edition by Kieso, Weygandt and Warfield, ISBN: 9781119790976, All 23 Chapters Covered, Verified Latest Edition

TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete

,Table of Contents
v v


1vThevEnvironmentvandvConceptualvFrameworkvofvFinancialvReporting

2vThevAccountingvInformationvSystem

3vIncomevStatement,vRelatedvInformation,vandvRevenuevRecognition

4vBalancevSheetvandvStatementvofvCashvFlows

5vAccountingvandvthevTimevValuevofvMoney

6vCashvandvReceivables

7vValuationvofvInventories:vAvCost-BasisvApproach

8vInventories:vAdditionalvValuationvIssues

9vAcquisitionvandvDispositionvofvProperty,vPlant,vandvEquipment

10vDepreciation,vImpairments,vandvDepletion

11vIntangiblevAssets

12vCurrentvLiabilitiesvandvContingencies

13vLong-TermvLiabilities

14vStockholders’vEquity

15vDilutivevSecuritiesvandvEarningsvpervShare

16vInvestments

17vRevenuevRecognition

18vAccountingvforvIncomevTaxes

19vAccountingvforvPensionsvandvPostretirementvBenefits

20vAccountingvforvLeases

21vAccountingvChangesvandvErrorvAnalysis

22vStatementvofvCashvFlows

23vFullvDisclosurevinvFinancialvReportingv

, CHAPTER 1 v




THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK
v v v v v



OF FINANCIAL REPORTING v v




IFRSvquestionsvarevavailablevatvthevendvofvthisvchapter.


TRUE-FALSE—Conceptual
1. Financialvstatementsvarevthevprincipalvmeansvthroughvwhichvavcompanyvcommunicatesvitsvfina
ncialvinformationvtovthosevoutsidevit.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


2. Usersv ofv financialv reportsv ofv av companyv usev thev informationv providedv byv thesev reportsv tovm
akevcapitalvallocationvdecisions.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


3. Anveffectivevprocessvofvcapitalvallocationvprovidesvanvefficientvmarketvforvbuyingvandvsellingvsec
uritiesvandvobtainingvandvgrantingvcredit.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


4. Investorsvarevinterestedvinvfinancialvreportingvbecausevitvprovidesvinformationvthatvisvusefulvforv
makingvdecisions.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


5. Usersv ofv financialv accountingv statementsv havev bothv coincidingv andv conflictingv needsv forvinf
ormationvofvvariousvtypes.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


6. AlthoughvthevFASBvhasvdevelopedvavconceptualvframework,vnovStatementsvofvFinancialvAccou
ntingvConceptsvhavevbeenvissuedvtovdate.
Ans:vF,vLO:v1,vBloom:vK,vDifficulty:vModerate,vMin:v1,vAACSB:vKnowledge,vAICPAvBC:vNone,vAICPAvAC:vReporting,vAICPAvPC:vNone,vIMA:vReportingv&v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

7. ThevpassagevofvavnewvFASBvAccountingvStandardsvUpdatevrequiresvthevsupportvofvfivevofv thevs
evenvboardvmembers.
Ans:v F,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvPreparation,vIFRS:vNone


8. StatementsvofvFinancialvAccountingvConceptsvsetvforthvfundamentalvobjectivesvandv conceptsvt
hatvarevusedvbyvthevFASBvinvdevelopingvfuturevstandardsvofvfinancialvaccountingvandvreporting.
Ans:v T,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvAnalysis,vIFRS:vNone


9. ThevFASB’svCodificationvcreatesvavnewvsetvofvGAAP.
Ans:v F,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &
v Control:vFinancialvStatementvAnalysis,vIFRS:vNone

, 1v-v2 TestvBankvforvIntermediatevAccounting,vEighteenthvEdition

10. Thevobjectivevofvfinancialvreportingvisvtovreportvthevplansvmadevbyvavcompanyvtovimprovevthevpro
ductivityvofvitsvemployees.
Ans:v F,v LO:v 1,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvPreparation,vIFRS:vNone

11. Av soundlyv developedv conceptualv frameworkv enablesv thev FASBv tov issuev morev usefulv andvco
nsistentvpronouncementsvovervtime.
Ans:v T,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

12. Avconceptualvframeworkvisvavcoherentvsystemvofvconceptsvthatvflowvfromvanvobjective.
Ans:v T,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

13. Thev firstv levelv ofv thev conceptualv frameworkv identifiesv thev recognition,v measurement,v andvdi
sclosurevconceptsvusedvinvestablishingvaccountingvstandards.
Ans:v F,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone


14. Thevobjectivevofvfinancialvreportingvservesvasvthevfoundationvofvthevconceptualvframework.
Ans:v T,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

15. Usersvofvfinancialvstatementsvarevassumedvtovneedvnovknowledgevofvbusinessvandvfinancialvac
countingvmattersvtovunderstandvthevinformationvcontainedvinvfinancialvstatements.
Ans:v F,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

16. Relevancev andv faithfulv representationv arev thev twov fundamentalv qualitiesv thatv makevacc
ountingvinformationvusefulvforvdecision-making.
Ans:v T,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

17. Thevideavofvconsistencyvdoesvnotvmeanvthatvcompaniesvcannotvswitchvfromvonevaccountingvme
thodvtovanother.
Ans:vT,vLO:v2,vBloom:vC,vDifficulty:vModerate,vMin:v1,vAACSB:vKnowledge,vAICPAvBC:vNone,vAICPAvAC:vReporting,vAICPAvPC:vNone,vIMA:vReportingv&v C
ontrol:vFinancialvStatementvAnalysis,vIFRS:vNone

18. Timelinessvandvneutralityvarevtwovingredientsvofvrelevance.
Ans:v F,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

19. Verifiabilityvandvpredictivevvaluevarevtwovingredientsvofvfaithfulvrepresentation.
Ans:v F,v LO:v 2,v Bloom:v K,v Difficulty:v Easy,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Reporting,v AICPAv PC:v None,v IMA:v Reportingv &v
Control:vFinancialvStatementvAnalysis,vIFRS:vNone

20. Revenues,vgains,vandvdistributionsvtovownersvallvincreasevequity.
Ans:v F,v LO:v 2,v Bloom:v C,v Difficulty:v Moderate,v Min:v 1,v AACSB:v Knowledge,v AICPAv BC:v None,v AICPAv AC:v Measurementv Analysisv andv Interpretation,v
AICPAvPC:vNone,vIMA:vReportingv&vControl:vFinancialvStatementvAnalysis,vIFRS:vNone

21. Comprehensivev incomev includesv allv changesv inv equityv duringv av periodv exceptv thosevre
sultingvfromvinvestmentsvbyvownersvandvdistributionsvtovowners.
Ans:vT,vLO:v2,vBloom:vK,vDifficulty:vEasy,vMin:v1,vAACSB:vKnowledge,vAICPAvBC:vNone,vAICPAvAC:vMeasurementvAnalysisvandvInterpretation,vAICPAv
PC:vNone,vIMA:vReportingv&vControl:vFinancialvStatementvAnalysis,vIFRS:vNone