TEST BANK hj
Intermediate Accounting, 18th Edition By
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Kieso,Warfield, Complete Chapters 1 To 23
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, TABLE OF CONTENTS h j h j
Ch. 1: The Environment and Conceptual Framework of Financial Reporting Ch.
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hj 2: Accounting Information System
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Ch. 3: Income Statement & Revenue Recognition Ch.
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hj 4: Balance Sheet and Statement of Cash Flows Ch. 5:
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hj Time Value of Money hj hj hj
Ch. 6: Cash and Accounts Receivable
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Ch. 7: Valuation ofInventories: A Cost-Basis Approach Ch.
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8: Inventories: Additional Valuation Issues
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Ch. 9: Acquisition and Disposition of Property, Plant, and Equipment Ch.
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10: Depreciation, Impairments, and Depletion
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Ch. 11: Intangible Asset
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Ch. 12: Current Liabilities and Contingencies Ch.
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hj 13: Long-Term Liabilities
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Ch. 14: Stockholders’ Equity
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Ch. 15: Dilutive Securities and Earnings per Share Ch.
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hj 16: Investments hj
Ch. 17: Revenue Recognition
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Ch. 18 Accounting for Income Taxes Ch.
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hj 19: Pensions hj
Ch. 20: Leases hj hj
To get this COMPLETE PDF Email us at
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Ch. 21: Accounting Changes and Error Analysis
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hj Ch. 22: Statement of Cash Flows
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Ch. 23: Full disclosure
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,Test Bank for Intermediate Accounting, 18th Edition 18e by Donald E. Kieso,Terry D. Warfield
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CHAPTER 1 hj All Chapters hj
✅
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORKOF
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FINANCIAL REPORTING hj hj
IFRS questions are available at the end of this chapter.
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TRUE-FALSE—Conceptual
1. Financial statements are the principal means through which a company communicates its financial
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information to those outside it.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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2. Users of financial reports of a company use the information provided by these reports tomake
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capital allocation decisions.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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3. Aneffectiveprocess ofcapital allocationprovides anefficientmarket forbuyingandselling
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securities and obtaining and granting credit.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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4. Investors are interested in financial reporting because it provides information that is usefulfor
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making decisions.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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5. Users of financial accounting statements have both coinciding and conflicting needs for
hj hj hj hj hj hj hj hj hj hj hj
information of various types.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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6. Although the FASB has developed a conceptual framework, no Statements of Financial Accounting
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Concepts have been issued to date.
h j hj hj hj hj hj
Ans: F, LO: 1, Bloom: K, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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7. The passage of a new FASB Accounting Standards Update requires the support of five ofthe seven
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board members.
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Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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8. Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are hj hj hj hj hj hj hj hj hj hj hj hj
usedby the FASB in developing future standards offinancialaccounting and reporting.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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9. The FASB’s Codification creates a new set of GAAP.
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Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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, 1 -2
hj hj TestBankfor Intermediate Accounting, Eighteenth Edition
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10. The objective of financial reporting is to report the plans made by a company to improve the
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productivity of its employees.
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Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: N one, IMA: R eporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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11. A soundly developed conceptual framework enables the FASB to issue more useful andconsistent
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pronouncements over time.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
12. A conceptual framework is a coherent system of c oncepts that flow from an objective.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
13. The first level of the conceptual framework identifies the recognition, measurement, anddisclosure
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hconcepts used in establishing accounting standards.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
14. The objective of financial reporting serves as the foundation of the conceptual framework.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
15. Users of financial statements are assumed to need no knowledge of business and financialaccounting
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matters to understand the information contained in financial statements.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
16. Relevance and faithful representation are the two fundamental qualities that h j hj hj h j h j h j h j hj h j
makeaccounting information useful for decision-making.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
17. The idea of consistency does not mean that companies cannot switch from one accountingmethod to
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h another.j
Ans: T, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
18. Timeliness and neutrality are two ingredients of relevance. hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
19. Verifiability and predictive value are two ingredients of faithful representation. hj hj hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
20. Revenues, gains, and distributions to owners all increase equity. hj hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA
hj hj hj hj hj hj hj h j h j h j h j h j h j h j h j h j h j h j h j h j hj
PC: None, IMA: Reporting & Control: Financial Statement Analysis, IFRS: None
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21. Comprehensive income includes all changes in equity during a period except thoseresulting from hj hj hj hj hj hj hj hj hj hj hj hj
investments by owners and distributions to owners.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA:
hj hj hj h j hj hj hj hj hj hj h j hj h j hj hj h j hj h j h j h j hj hj hj hj
Reporting & Control: Financial Statement Analysis, IFRS: None
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To get this COMPLETE PDF Email us at
hj hj hj hj hj hj hjhj
hj
Intermediate Accounting, 18th Edition By
hj hj hj hj
Kieso,Warfield, Complete Chapters 1 To 23
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, TABLE OF CONTENTS h j h j
Ch. 1: The Environment and Conceptual Framework of Financial Reporting Ch.
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hj 2: Accounting Information System
hj hj hj
Ch. 3: Income Statement & Revenue Recognition Ch.
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hj 4: Balance Sheet and Statement of Cash Flows Ch. 5:
hj hj hj hj hj hj hj hj hj
hj Time Value of Money hj hj hj
Ch. 6: Cash and Accounts Receivable
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Ch. 7: Valuation ofInventories: A Cost-Basis Approach Ch.
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8: Inventories: Additional Valuation Issues
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Ch. 9: Acquisition and Disposition of Property, Plant, and Equipment Ch.
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10: Depreciation, Impairments, and Depletion
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Ch. 11: Intangible Asset
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Ch. 12: Current Liabilities and Contingencies Ch.
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hj 13: Long-Term Liabilities
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Ch. 14: Stockholders’ Equity
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Ch. 15: Dilutive Securities and Earnings per Share Ch.
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hj 16: Investments hj
Ch. 17: Revenue Recognition
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Ch. 18 Accounting for Income Taxes Ch.
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hj 19: Pensions hj
Ch. 20: Leases hj hj
To get this COMPLETE PDF Email us at
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Ch. 21: Accounting Changes and Error Analysis
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hj
hj Ch. 22: Statement of Cash Flows
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Ch. 23: Full disclosure
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,Test Bank for Intermediate Accounting, 18th Edition 18e by Donald E. Kieso,Terry D. Warfield
h j h j h j h j h j h j h j h j h j h j h j h j h j
CHAPTER 1 hj All Chapters hj
✅
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORKOF
hj hj hj hj
FINANCIAL REPORTING hj hj
IFRS questions are available at the end of this chapter.
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TRUE-FALSE—Conceptual
1. Financial statements are the principal means through which a company communicates its financial
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information to those outside it.
h j hj hj hj hj
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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2. Users of financial reports of a company use the information provided by these reports tomake
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capital allocation decisions.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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3. Aneffectiveprocess ofcapital allocationprovides anefficientmarket forbuyingandselling
hj hj hj hj hj hj hj hj hj hj hj hj hj
securities and obtaining and granting credit.
hj hj hj hj hj hj
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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4. Investors are interested in financial reporting because it provides information that is usefulfor
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making decisions.
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Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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5. Users of financial accounting statements have both coinciding and conflicting needs for
hj hj hj hj hj hj hj hj hj hj hj
information of various types.
hj hj hj hj
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
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6. Although the FASB has developed a conceptual framework, no Statements of Financial Accounting
hj hj hj hj hj hj hj hj hj hj hj hj
Concepts have been issued to date.
h j hj hj hj hj hj
Ans: F, LO: 1, Bloom: K, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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7. The passage of a new FASB Accounting Standards Update requires the support of five ofthe seven
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
board members.
hj hj
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
h j hj hj hj
8. Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are hj hj hj hj hj hj hj hj hj hj hj hj
usedby the FASB in developing future standards offinancialaccounting and reporting.
hj hj hj hj hj hj hj hj hj hj hj hj hj
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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9. The FASB’s Codification creates a new set of GAAP.
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Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: N one, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None
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, 1 -2
hj hj TestBankfor Intermediate Accounting, Eighteenth Edition
h
j hj hj hj hj hj
10. The objective of financial reporting is to report the plans made by a company to improve the
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productivity of its employees.
hj hj hj hj
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: N one, IMA: R eporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Preparation, IFRS: None
h j hj hj hj
11. A soundly developed conceptual framework enables the FASB to issue more useful andconsistent
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pronouncements over time.
hj hj hj
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
12. A conceptual framework is a coherent system of c oncepts that flow from an objective.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & C ontrol: Financial
hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj hj
Statement Analysis, IFRS: None h j hj hj hj
13. The first level of the conceptual framework identifies the recognition, measurement, anddisclosure
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hconcepts used in establishing accounting standards.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
14. The objective of financial reporting serves as the foundation of the conceptual framework.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
15. Users of financial statements are assumed to need no knowledge of business and financialaccounting
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matters to understand the information contained in financial statements.
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Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
16. Relevance and faithful representation are the two fundamental qualities that h j hj hj h j h j h j h j hj h j
makeaccounting information useful for decision-making.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
17. The idea of consistency does not mean that companies cannot switch from one accountingmethod to
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h another.j
Ans: T, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
18. Timeliness and neutrality are two ingredients of relevance. hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
19. Verifiability and predictive value are two ingredients of faithful representation. hj hj hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
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Statement Analysis, IFRS: None h j hj hj hj
20. Revenues, gains, and distributions to owners all increase equity. hj hj hj hj hj hj hj hj
Ans: F, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA
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PC: None, IMA: Reporting & Control: Financial Statement Analysis, IFRS: None
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21. Comprehensive income includes all changes in equity during a period except thoseresulting from hj hj hj hj hj hj hj hj hj hj hj hj
investments by owners and distributions to owners.
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Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA:
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Reporting & Control: Financial Statement Analysis, IFRS: None
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