Intermediate Accounting,13th Canadian
Edition, Volume 2 with Actual Questions &
Correct Answers
Liability - ANS✔✔--Obligation to transfer cash or other resources as a result of a past
transaction.
distribution to owners - ANS✔✔--Dividends paid by a corporation to its shareholders
Internal users of acounting information - ANS✔✔--...
external users of accounting information - ANS✔✔--Investors, creditors, employees,
labor unions, customers, suppliers, government regulatory agencies, financial
intermediaries
financial accounting - ANS✔✔--Provides relevant financial information to various
external users.
managerial accounting - ANS✔✔--deals with the concepts and methods used to
provide information to an organization's internal users
GAAP - ANS✔✔--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 - ANS✔✔--responsible for setting accounting and reporting standards for
companies whose securities are publicly traded
FASB - ANS✔✔--the current private sector body that has been delegated the task of
setting accounting standards.
IASB - ANS✔✔--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 - ANS✔✔--developed by the IASB and used by more than 100 countries
, SOX - ANS✔✔--law provides for the regulation of the key players in the financial
reporting process
Initial market transactions - ANS✔✔--involves issuance of stocks and bonds by the
corporation
Secondary market transactions - ANS✔✔--involves the transfer of stocks and bonds
between individuals and institutions
Maltec Corporation has started placing its quarterly financial statements on its web
page, thereby reducing by 10 days the time to get information to investors and creditors.
The qualitative concept improved is: - ANS✔✔--Timeliness
managerial accounting - ANS✔✔--deals with the concepts and methods used to
provide information to an organization's internal users
GAAP - ANS✔✔--set of both broad and specific guidelines that companies should
follow when measuring and reporting the information in their financial statements and
related notes
Timeliness - ANS✔✔--information that is available to users early enough to allow its
use in the decision process
Consistency - ANS✔✔--permits valid comparisons between different periods
Faithful representation - ANS✔✔--exists when there is agreement between a
measure or description and the phenomenon it purports to represent
Comparability - ANS✔✔--the ability to help users see similarities and differences
among events and conditions
Astro Turf Company recognizes an expense, cost of goods sold, in the period the
product is manufactured. - ANS✔✔--The matching principle
Cloud Drug Company owns a patent that it purchased three years ago for $2 million.
The controller recently revalued the patent to its approximate market value of $8 million.
- ANS✔✔--The historical cost (original transaction value) principle
Philips Company pays the monthly mortgage on the home of its president, Larry
Crosswhite, and charges the expenditure to miscellaneous expense. - ANS✔✔--The
economic entity assumption
The economic entity assumption - ANS✔✔--of an entity be kept separated from
activities of its owner
Edition, Volume 2 with Actual Questions &
Correct Answers
Liability - ANS✔✔--Obligation to transfer cash or other resources as a result of a past
transaction.
distribution to owners - ANS✔✔--Dividends paid by a corporation to its shareholders
Internal users of acounting information - ANS✔✔--...
external users of accounting information - ANS✔✔--Investors, creditors, employees,
labor unions, customers, suppliers, government regulatory agencies, financial
intermediaries
financial accounting - ANS✔✔--Provides relevant financial information to various
external users.
managerial accounting - ANS✔✔--deals with the concepts and methods used to
provide information to an organization's internal users
GAAP - ANS✔✔--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 - ANS✔✔--responsible for setting accounting and reporting standards for
companies whose securities are publicly traded
FASB - ANS✔✔--the current private sector body that has been delegated the task of
setting accounting standards.
IASB - ANS✔✔--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 - ANS✔✔--developed by the IASB and used by more than 100 countries
, SOX - ANS✔✔--law provides for the regulation of the key players in the financial
reporting process
Initial market transactions - ANS✔✔--involves issuance of stocks and bonds by the
corporation
Secondary market transactions - ANS✔✔--involves the transfer of stocks and bonds
between individuals and institutions
Maltec Corporation has started placing its quarterly financial statements on its web
page, thereby reducing by 10 days the time to get information to investors and creditors.
The qualitative concept improved is: - ANS✔✔--Timeliness
managerial accounting - ANS✔✔--deals with the concepts and methods used to
provide information to an organization's internal users
GAAP - ANS✔✔--set of both broad and specific guidelines that companies should
follow when measuring and reporting the information in their financial statements and
related notes
Timeliness - ANS✔✔--information that is available to users early enough to allow its
use in the decision process
Consistency - ANS✔✔--permits valid comparisons between different periods
Faithful representation - ANS✔✔--exists when there is agreement between a
measure or description and the phenomenon it purports to represent
Comparability - ANS✔✔--the ability to help users see similarities and differences
among events and conditions
Astro Turf Company recognizes an expense, cost of goods sold, in the period the
product is manufactured. - ANS✔✔--The matching principle
Cloud Drug Company owns a patent that it purchased three years ago for $2 million.
The controller recently revalued the patent to its approximate market value of $8 million.
- ANS✔✔--The historical cost (original transaction value) principle
Philips Company pays the monthly mortgage on the home of its president, Larry
Crosswhite, and charges the expenditure to miscellaneous expense. - ANS✔✔--The
economic entity assumption
The economic entity assumption - ANS✔✔--of an entity be kept separated from
activities of its owner
