AC 305 Chapter 1 Flashcards Quizlet PDF

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TAGS RELATED TO THIS SET Publicly Traded Companies

Financial Accounting

Accounting

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Terms in this set (38) The objective

reporting to capital

of financial

providers.

reporting places most emphasis on:

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GAAP stands for

Generally Accepted Accounting Principles

GAAP is

any accounting guidance

comprised of

included in the FASB Codification.

Accounting

Research, discussion paper,

standard-

exposure draft, standard.

setters use the following process in establishing

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accounting standards: General-

external users

purpose financial statements are prepared primarily for:

IFRS includes

True

both International Financial Reporting Standards and https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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International Accounting Standards. (T or F)

International

False

Financial Reporting Standards preceded International Accounting Standards. (T or F) https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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The standard-

True

setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board. (T or F) https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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The rules-

False

based standards of IFRS are more detailed than the simpler, principlesbased standards of GAAP. (T or F)

Accounting https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

I. or II. 9/33

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principles are "generally accepted" only when I. an authoritative accounting rule-making body has established it in an official pronounceme nt. II. a given practice has https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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been accepted as appropriate because of its universal application. (T or F)

The role of the

varied - the SEC relies on

Securities and

FASB to develop standards

Exchange

but gives advice and

Commission

recommendations to the

(SEC) in the

private sector as needed.

formulation of accounting standards can https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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be best described as:

Which of the

SEC (Securities and

following was

Exchange Commission).

established by the federal government to help develop and standardize financial information https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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presented to stockholders?

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The first step

topics are identified and

taken in the

placed on the board's

establishment

agenda.

of a typical FASB statement is:

Financial

True

Accounting Concepts are a major type of pronounceme https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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nt issued by the FASB (Financial Accounting Standards Board). (T or F)

Which of the

Statements of Financial

following

Accounting Concepts

publications is not considered a GAAP document?

The Financial https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

- does not create new 15/33

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Accounting Standards

GAAP.

Board

- eliminates nonessential

Accounting

information.

Standards Codification:

- simplifies user access to all authoritative U.S. generally accepted accounting principles.

The European

True

Union requires publicly traded member country https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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companies to use IFRS (International Financial Reporting Standards): (T or F)

International

IASB (International

Financial

Accounting Standards

Reporting

Board).

Standards (IFRS) are issued by the: https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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IFRS is more

False

"rules-based" in its approach to standards than U.S. GAAP. (T or F)

The objective

companies are viewed as

of general

separate and distinct from

purpose

their owners.

financial reporting adopts an entity https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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perspective, which means that:

Which of the

- It would be almost

following

impossible to prepare

would result if

statements that could be

there was not

compared.

set of generally

- Each company would

accepted and

have to develop its own

universally

standards.

practiced accounting

- Readers of financial

standards?

statements would have to

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familiarize themselves with every company's peculiar accounting and reporting practices.

The Financial

True

Accounting Standards Advisory Council (FASAC) consults with the FASB on major policy and technical https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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issues and helps select task force members. (T or F)

Which group

FAF (Financial Accounting

selects

Foundation).

members of the FASB?

The

EITF (Emerging Issues Task

organization

Force).

that provides https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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implementatio n guidance within the framework of the Codification to reduce diversity in practice on a timely basis is the:

The

True

Codification creates one https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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level of GAAP which is considered authoritative. (T or F)

Foreign

False

companies listed on U.S. exchanges are required to issue statements that comply with https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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U.S. GAAP. (T or F) The mission of

develop a single set of

the

high-quality and

International

understandable IFRS for

Accounting

general-purpose financial

Standards

statements.

Board (IASB) is to:

All of the

IFRS includes standards

following are

referred to as International

true regarding

Auditing Standards (IAS).

IFRS except: https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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1. IFRS is more "principlesbased" than U.S. GAAP. 2. IFRS includes standards referred to as International Auditing Standards (IAS). 3. The https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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adoption of IFRS by U.S. companies would make it easier to compare them with foreign companies. 4. IFRS are developed by the IASB.

Which of the

about the reporting entity

following is the

that is useful to present and

objective of

potential equity investors,

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financial reporting? To

lenders, and other creditors.

provide information:

The objective

investors and creditors

of financial reporting identifies ______________ as the primary users for generalpurpose https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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financial statements: A common set

generally accepted

of accounting

accounting principles

standards and

(GAAP)

procedures are called:

Which of the

All of the above -

following user

academicians, government,

groups

and CPAs and accounting

influence the

firms

formulation of

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accounting standards? IFRS stands

International Financial

for:

Reporting Standards

The major key

IASB (International

players on the

Accounting Standards

international

Board) & IOSCO

side are the:

(International Organization of Securities Commissions)

IFRS is

International Financial

comprised of:

Reporting Standards, International Accounting Standards, and

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International Accounting Interpretations.

Choose the

It is a violation of SEC

correct

regulations for publicly

statement

traded companies to

about GAAP.

depart from GAAP.

The FASB is

private sector body

a(n):

Which of the https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

A proposed accounting 30/33

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following documents is

standards update.

typically issued as part of the dueprocess activities of the Financial Accounting Standards Board (FASB) for amending the FASB Accounting Standards Codification? https://quizlet.com/222993663/ac-305-chapter-1-flash-cards/

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