ACCOUNTING 3300 1 QUESTIONS AND ANSWERS 2025
Financial accounting is the process of identifying, measuring, analyzing, and communicating financial
information needed by management to plan, evaluate, and control a company's operations. T/F -
(ANSWER)FALSE
Financial statements are the principal means through which a company communicates its financial
information to those outside it. T/F - (ANSWER)TRUE
Users of financial reports of a company use the information provided by these reports to make their
capital allocation decisions.
T/F - (ANSWER)TRUE
An effective process of capital allocation promotes productivity and provides an efficient market for
buying and selling securities and obtaining and granting credit. T/F - (ANSWER)TRUE
The objective of financial reporting is to report the plans made by a company to improve the
productivity of its employees. T/F - (ANSWER)FALSE
Investors are interested in financial reporting because it provides information that is useful for making
decisions. T/F - (ANSWER)TRUE
Users of financial accounting statements have both coinciding and conflicting needs for information of
various types. T/F - (ANSWER)TRUE
The Securities and Exchange Commission appointed the Committee on Accounting Procedure. T/F -
(ANSWER)FALSE
The passage of a new FASB Accounting Standards Update requires the support of five of the seven board
members. T/F - (ANSWER)FALSE
Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are
used by the FASB in developing future standards of financial accounting and reporting. T/F -
(ANSWER)TRUE
Financial accounting is the process of identifying, measuring, analyzing, and communicating financial
information needed by management to plan, evaluate, and control a company's operations. T/F -
(ANSWER)FALSE
Financial statements are the principal means through which a company communicates its financial
information to those outside it. T/F - (ANSWER)TRUE
Users of financial reports of a company use the information provided by these reports to make their
capital allocation decisions.
T/F - (ANSWER)TRUE
An effective process of capital allocation promotes productivity and provides an efficient market for
buying and selling securities and obtaining and granting credit. T/F - (ANSWER)TRUE
The objective of financial reporting is to report the plans made by a company to improve the
productivity of its employees. T/F - (ANSWER)FALSE
Investors are interested in financial reporting because it provides information that is useful for making
decisions. T/F - (ANSWER)TRUE
Users of financial accounting statements have both coinciding and conflicting needs for information of
various types. T/F - (ANSWER)TRUE
The Securities and Exchange Commission appointed the Committee on Accounting Procedure. T/F -
(ANSWER)FALSE
The passage of a new FASB Accounting Standards Update requires the support of five of the seven board
members. T/F - (ANSWER)FALSE
Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are
used by the FASB in developing future standards of financial accounting and reporting. T/F -
(ANSWER)TRUE
