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CHAPTER 2: FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- Accounting principles are theories, truths, and propositions that service as the basis for financial accounting and
- True
- False
reporting.
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.1 - LO: 2.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- The rules for accounting are based upon concepts, and principles which broad and subject to an interpretation.
- True
- False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.1 - LO: 2.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- Information is communicated to external users by the management of the company. Those users cannot dictate desired
- True
- False
financial results to the company.
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.2 - LO: 2.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
Intermediate Accounting Reporting and Analysis 2nd Edition Wahlen Test Bank Visit TestBankDeal.com to get complete for all chapters
Chapter 2: Financial Reporting: Its Conceptual Framework
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- The primary purpose of financial reporting is to provide useful and relevant information to the internal stakeholder’s of
- True
- False
the company.
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.2 - LO: 2.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- Management’s stewardship is to provide information about how a company’s cash flows cause changes in the
- True
- False
company’s resources and claim’s.
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.2 - LO: 2.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- Liquidity is positively related to financial flexibility but negatively related to risk and return on investments.
- True
- False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.2 - LO: 2.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
Chapter 2: Financial Reporting: Its Conceptual Framework
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- Relevance and faithful representation are the ultimate objectives of accounting information.
- True
- False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.3 - LO: 2.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- To measure assets, liabilities, revenues, expenses, and other elements of the financial statements with the most relevant
- True
- False
and faithful measurement available is the mixed attribute measurement model.
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.4 - LO: 2.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- Oil and gas reserves information would be included within the financial statements.
- True
- False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.5 - LO: 2.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
Chapter 2: Financial Reporting: Its Conceptual Framework
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- Management discussion and analysis would be included in the supplementary information to the financial statements.
- True
- False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.5 - LO: 2.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- The eight phases of the joint FASB and IASB framework project are: 1) objective and qualitative characteristics, 2)
- True
- False
elements and recognition, 3) presentation and disclosure, 4) reporting entity, 5) measurement, 6) framework for GAAP hierarchy, 7) applicability to the not-for-profit sector, and 8) any remaining issues needing to be addressed.
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ACCT.WHAL.16.2.6 -
LO: 2.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
- Three phases of the convergence project were put on hold they were elements and recognition, measurement, and
- True
- False
presentation and disclosure.
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ACCT.WHAL.16.2.6 -
LO: 2.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom’s: Remembering
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