Click On The Link Below to Purchase A+ Graded Material
Instant Download
Week 2 Quiz 1: Chapter 1
Chapter 1
Multiple Choice:
- Which of the following bodies has the ultimate authority to issue
accounting pronouncements in the United States?
a. Securities and Exchange Commission
b. Financial Accounting Standards Board
c. International Accounting Standards Committee
d. Internal Revenue Service
Answer
- What historical evidence of the business operations of the private
estate of Apollonius was discovered early inthe20th century?
a.
The Iliad
c.
The Zenon papyri
d.
Pacioli’s work, Summa de Arithmetica Geometria Proportioni
et Proportionalita,
Answer
- Who has been given credit or developing the double-entry system of
bookkeeping?
a. Francis Wheat
b. Fra Luca Pacioli
c. A. C. Littleton
d. William Paton
Answer
- Which of the following was not a criticism of the development of
accounting standards by the Accounting Principles Board?
a.
The independence
of the members of the APB. The individuals serving on the board had full-time
responsibilities elsewhere that might influence their views of certain issues.
b.
The structure of
the board. The largest eight public accounting firms (at that time) were
automatically awarded one member, and there were usually five or six other
public accountants on the APB.
c.
Harmonization.
The accounting standards developed were dissimilar to those developed by the
International Accounting Standards Committee.
d.
Response time.
The emerging accounting problems were not being investigated and solved quickly
enough by the part-time members.
Answer
- Which of the following is the professional organization of
university accounting professors?
a. American Accounting Association
b. American Institute of Certified Public Accountants
c. American Institute of Accountants
d. Financial Executives Institute
Answer
- What controversy originally highlighted the need for standard
setting groups to have more authority?
a. Accounting for stock options
b. Accounting for derivatives
c. Accounting for marketable securities
d. Accounting for the investment tax credit
Answer
- Which of the following committees recommended abolishing the
Accounting Principles Board and replacing it with the Financial Accounting
Board ?
a. Wheat
b. Cohen
c. Trueblood
d. Anderson
Answer
- Which of the following is a public sector accounting standard
setter?
a. FASB
b. SEC
c. APB
d. CAP
Answer
- Which of the following types of pronouncements now establishes generally
accepted accounting principles?
a. Statements of Concepts
b. Statements of Financial Accounting Standards
c. APB Opinions
d. Accounting Standards Updates
Answer
- Which of the following types of pronouncements are intended to
establish the objectives and concepts that the FASB will use in developing
standards of financial accounting and reporting?
a. Statements of Concepts
b. Statements of Financial Accounting Standards
c. APB Opinions
d. Accounting Standards Updates
Answer
- Which of the following is not a consequence of the standards
overload problem to small businesses?
a. If a small business omits a GAAP requirement from
audited financial statements, a qualified or adverse opinion may be rendered.
b. Small businesses do not need to keep financial records
c. The cost of complying with GAAP requirements may cause
a small business to forgo the development of other, more relevant information.
d. Small CPA firms that audit smaller companies must keep
up to date on all the same requirements as large international firms, but they
cannot afford the specialists that are available on a centralized basis in the
large firms.
Answer
- Some accountants maintain that accounting standards are as much a
product of political action as they are of careful logic or empirical
findings. This belief is an example of the concept of
a. Standard setting as apolitical process
b. Standards overload
c. Economic consequences
d. The role of ethics in accounting
Answer
13. T he impact of accounting reports on various segments
of our economic society is the definition of the concept of
a. Standard setting as apolitical process
b. Standards overload
c. Economic consequences
d. The role of ethics in accounting
Answer
14. Considering
and understanding how business decisions affect the financial statements is
a. The sole responsibility of the Securities and
Exchange Commission.
b. Provided in the auditor’s report.
c. Referred to as an economic consequence
perspective.
d. Interpreted
strictly by the company’s suppliers.
Answer
15.
Which of the
following is a source of nonauthoritative accounting guidance and literature?
a.
Financial Accounting Standards Board
Statements
b. Financial Accounting Standards Board Interpretations
c. Financial Accounting Standards Board Technical
Bulletins
d. Practices that are widely recognized and prevalent
either generally or in the industry
Answer
16.
Which of the
following companies was involved in an accounting failure that caused the
public accounting firm Arthur Andersen to gout of business?
a. Goldman Sachs
b. Wachovia
c. Enron
d. AIG
Answer
Essay
1. What
is the difference between normative and positive theory?
2. Why
is the development of a general theory of accounting important
3. Discuss
the evolution of accounting during the 1930s.
4. Discuss
the evolution of the three private sector accenting standard setting
organizations.
5. What
were the purposes of the Wheat and Trueblood committees?
6. What
was the purpose of the GAAP Hierarchy?
7. What
were the four types of pronouncements issued by the FASB?
8. Discuss
why standard setting may be viewed as a political process.
9. Define
the following terms
10. Discuss
the evolution of the phrase “generally accepted accounting principles.
11. What
controversy caused the AICPA to issue Rule 203 that requires companies to use
GAAP when issuing financial statements?
12. Discuss
the FASB ASC including the reasons for its adoption and the FASB’s goals in
developing it..
13. Discuss
the role of ethics in accounting.
14. What
is a special purpose entity and how do they work?
15. How
did the Sarbanes-Oxley Act change the way the FASB is funded?
16. Discuss
the objectives of the International Accounting Standards Board.
No comments:
Post a Comment