LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1

Chapter 1

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True / False

• A problem arising from equal information is called information asymmetry.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The demand for relevant and reliable financial information stems from the needs of the internal and external

stakeholders.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient

markets, and assist in the formation of capital.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling 1 / 4

Chapter 1

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KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies,

exchanges, and investors.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the Accounting

Principles Board (APB).

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing timely but more

narrow and specific standard setting issues.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False 2 / 4

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LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The Codification is set up as a system of levels starting with sections, topics, and subtopics.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The Codification was established to assist in reducing the time necessary to research an accounting issue and improve

the ability to utilize accounting information that conforms with GAAP.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S.

GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause some companies more harm than good.

• True
• False

ANSWER: True

POINTS: 1 3 / 4

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DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.5 - LO: 1.5

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The balance sheet is a snapshot of a company’s financial position at a particular date.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• The statement of shareholders' equity reports the effects from the recognition or valuation of certain asset or liability

transactions that change Accumulated Other Comprehensive Income.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6

NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling KEYWORDS: Bloom's: Remember

DATE CREATED: 8/27/2018 10:46 AM

DATE MODIFIED: 4/14/2023 11:31 AM

• “In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral

judgments in all their activities.” This is the Integrity Principle of the AICPA Code of Professional Conduct.

• True
• / 4