TEST BANK FOR Intermediate Accounting 3rd Edition, by Elizabeth Gordon , Jana Raedy ISBN:978-0136946427 ALL CHAPTERS COVERED YOUR ULTIMATE GUIDE 100% VERIFIED A+ GRADE ASSURED!!!!!! NEW LATEST UPDATE!!!!!!!

,Intermediate Accounting, 3e (Gordon/Raedy/Sannella)
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Chapter 1 The Financial Reporting Environment
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1.1 Overview of Financial Reporting gf gf gf




1) The financial reporting process generates three basic financial statement
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s. Answer: FALSE
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

2) The demand for financial information is based on market participant deman
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d. Answer: TRUE
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

3) Managers of economic entities are best considered to be users of financial informatio
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n. Answer: FALSE
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

4) Managers of economic entities are best considered to be preparers of financial informatio
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n. Answer: TRUE
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly trad
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ed companies.
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Answer: TRUE g f g f


Diff:gf2
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP
AACSB:g f g f Applicationgfofgfknowledge

6) The FASB gives the SEC authority to regulate accounting for publicly traded compani
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es. Answer: FALSE
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP
AACSB:g f g f Applicationgfofgfknowledge




1
Copyright © 2022 Pearson Education, Inc.
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,7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards a
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nd oversees the audits of public companies in the United States.
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Answer: FALSE g f g f


Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP
AACSB:g f g f Applicationgfofgfknowledge

8) Financial accounting standards influence the behavior of managers and other internal use
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rs. Answer: TRUE
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Diff:gf2
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

9) Theories and procedures that evolve as a result of lobbying from various groups are examples
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of proactive factors within the legal, economic, political, and social environment.
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Answer: FALSE g f g f


Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

10) Financial information includes information that is not governed by rules set forth by the accounti
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ng standard-setting bodies.
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Answer: TRUE g f g f


Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

11) What is the term that describes the process of identifying, measuring, and communicating financ
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ial information about an economic entity to various user groups?
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A) financial reporting gf


B) accounting standard setting gf gf


C) financial statement gf


D) financial accounting gf


Answer: D
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Diff:gf2
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge




2
Copyright © 2022 Pearson Education, Inc.
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, 12) Which element of financial accounting involves identifying the individuals who demand financi
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al information?
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A) financial information gf


B) economic entity gf


C) user groups
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D) legal, economic, political, and social environmen
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t Answer: C
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

13) Which of the following is not one of the four basic financial statements?
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A) balance sheet gf


B) trial balance
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C) cash flows statement
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D) statement of comprehensive income gf gf gf


Answer: B
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board
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B) Public Company Accounting Oversight Board
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C) International Accounting Standards Board gf gf gf


D) Securities and Exchange Commission gf gf gf


Answer: A
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP/IFRS
AACSB:g f g f Applicationgfofgfknowledge

15) Which organization is responsible for setting auditing standards and overseeing the audits of pub
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lic companies in the United States?
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A) Financial Accounting Standards Board
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B) Public Company Accounting Oversight Board
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C) American Institute of Certified Public Accountants
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D) Securities and Exchange Commission gf gf gf


Answer: B
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Diff:gf1
Objective:g f 1.1gfIFRS/GA
AP:g f GAAP
AACSB:g f g f Applicationgfofgfknowledge




3
Copyright © 2022 Pearson Education, Inc.
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