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Date Submitted: 05/10/2016 10:27 PM
CHAPTER 1
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Definition of financial accounting.
T 2. Purpose of financial statements.
T 3. Definition of financial accounting.
T 4. Capital allocation process.
F 5. Objective of financial reporting.
T 6. Decision-Usefulness approach.
T 7. Users of financial statements.
F 8. Committee on Accounting Procedure.
F 9. Passage of FASB standards.
T 10. Financial Accounting Concepts.
T 11. Creation of Accounting Principles Board.
F 12. FASB Codification.
T 13. Code of Professional Conduct.
F 14. GAAP and political action.
T 15. Public Company Accounting Oversight Board.
T 16. Expectations gap.
F 17. Financial reports.
F 18. Fair value information.
F 19. International Financial Reporting Standards.
F 20. Ethical issues.
Multiple Choice—Conceptual
Answer No. Description
a 21. Financial accounting.
d 22. Users of financial reports.
d 23. Identify the major financial statements.
a 24. Financial reporting entity.
d 25. Differences between financial and managerial accounting.
b 26. Financial reporting communication.
b 27. Managerial accounting.
a 28. Capital allocation process.
d 29. Efficient use of resources.
d 30. Capital allocation process.
c 31. Financial statement information.
c 32. Accounting profession challenge.
c 33. Financial reporting objective.
d 34. Financial statements primary users.
c 35. Investor’s decision making.
Multiple Choice—Conceptual (cont.)
Answer No. Description
b 36. Accrual accounting.
c 37. Objective of financial reporting perspective.
c 38. Meaning of “generally accepted.”
b 39. Common set of standards and procedures.
a 40. Limitation of general purpose financial statements.
c 41. Securities and Exchange Commission and accounting standard setting.
d 42. Due process in FASB standard...