Gia02 tb chapter 01 - Intermediate Accounting 2E - Gordon - TB PDF

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella)Chapter 1 The Financial Reporting Environment1 Overview of Financial Reporting1) The financial reporting process generates three basic financial statements. Answer: FALSE Diff: 1 Var: 1 Objective: 1. IFRS/GAAP: GAAP/IFRS AACSB: Application of knowle...

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Intermediate Accounting, 2e (Gordon/Raedy/Sannella) Chapter 1 The Financial Reporting Environment 1.1 Overview of Financial Reporting 1 )Thefinanc i a lr epor t i ngpr oc e s sge ne r a t e st hr e eba s i cfina nc i als t a t e me nt s . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 )Thede ma ndf orfina nc i ali nf or ma t i oni sba s e donma r ke tf a c t or s . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )Ma na ge r sofe c onomi ce nt i t i e sa r ebe s tc ons i de r e dt obeus e r soffina nc i ali nf or ma t i on. Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )Ma na ge r sofe c onomi ce nt i t i e sa r ebe s tc ons i de r e dt obepr e par e r soffinanc i ali nf or ma t i on. Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )TheSe c ur i t i e sa ndEx c hangeCommi s s i on( SEC)r e gul a t esfina nc i a lr e por t i ngf orpubl i c l yt r a de d c ompa ni e s . Ans we r :TRUE Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

6 )TheF ASBgi v e st heSECaut hor i t yt or e gul a t ea c c ount i ngf orpubl i c l yt r a de dc ompani e s . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

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7 )ThePubl i cCompa nyAc c ount i ngOve r s i ghtBoar d( PCAOB)s e t sfina nc i a la c c ount i ngs t a nda r dsa nd o ve r s e e st hea udi t sofpubl i cc ompa ni e si nt heUni t e dSt a t e s . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

8 )Fi na nc i alac c ount i ngs t a nda r dsi nflue nc et hebe ha vi orofma na ge r sa ndot he ri nt e r na lus e r s . Ans we r :TRUE Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

9 )The or i e sa ndpr oc e dur e st ha te vol veasar e s ul tofl obbyi ngf r om va r i ousgr oupsa r ee x ampl e sof pr oa c t i v ef a c t or swi t hi nt hel e gal ,e c onomi c , pol i t i c a l ,a nds oc i a le nvi r onme nt . Ans we r :F ALSE Di ff: 1 Va r :1 Pa geRe f :8 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0)Fi na nc i a li nf or ma t i oni nc l ude si nf or ma t i ont ha ti snotgo ve r ne dbyr ul e ss etf or t hbyt heac c ount i ng s t anda r ds e t t i ngbodi e s . Ans we r :TRUE Di ff: 1 Va r :1 Pa geRe f :8 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 1)Wha ti st het e r mt ha tde s c r i be st hepr oc e s sofi de nt i f yi ng, me as ur i ng,andc ommuni c a t i ngfina nc i a l i nf or ma t i ona boutane c onomi ce nt i t yt ov ar i ousus e rgr oups ? A)fina nc i a lr e por t i ng B)a c c ount i ngs t a nda r ds e t t i ng C)fina nc i als t a t e me nt D)financ i a lac c ount i ng Ans we r :D Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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1 2)Whi c he l e mentoffinanc i ala c c ount i ngi nvol v e si de nt i f yi ngt hei ndi vi dual swhode ma ndfina nc i a l i nf or ma t i on? A)fina nc i a li nf or ma t i on B)e c onomi ce nt i t y C)us e rgr oups D)l e gal ,e c onomi c ,pol i t i c a l ,a nds oc i a le nvi r onme nt Ans we r :C Di ff: 1 Va r :1 Pa geRe f :4 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 3)Whi c hoft hef ol l owi ngi sno toneoft hef ourba s i cfina nc i als t a t e me nt s ? A)ba l anc es he e t B)ge ne r al pur pos efina nc i als t a t e me nt C)c a s hflowss t a t e me nt D)s t a t e me ntofc ompr e he ns i vei nc ome Ans we r :B Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 4)Whi c hor gani za t i oni sr e s pons i bl ef orpr omul ga t i ngU. S. GAAP? A)Fi na nc i alAc c ount i ngSt anda r dsBoa r d B)Publ i cCompanyAc c ount i ngOve r s i ghtBoar d C)I nt e r na t i onalAc c ount i ngSt anda r dsBoa r d D)S e c ur i t i e sa ndEx c hangeCommi s s i on Ans we r :A Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 5)Whi c hor gani za t i oni sr e s pons i bl ef ors e t t i nga udi t i ngs t a nda r dsa ndove r s e e i ngt heaudi t sofpubl i c c ompa ni e si nt heUni t e dSt a t e s ? A)Fi na nc i alAc c ount i ngSt anda r dsBoa r d B)Publ i cCompanyAc c ount i ngOve r s i ghtBoar d C)Ame r i c a nI ns t i t ut eofCe r t i fie dPubl i cAc c ount ant s D)S e c ur i t i e sa ndEx c hangeCommi s s i on Ans we r :B Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

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1 6)Whi c hor gani za t i onpr e pa r e sa ndgr a de st heUni f or m CP AEx ami na t i on? A)Fi na nc i alAc c ount i ngSt anda r dsBoa r d B)Publ i cCompanyAc c ount i ngOve r s i ghtBoar d C)Ame r i c a nI ns t i t ut eofCe r t i fie dPubl i cAc c ount ant s D)I nt er na t i ona lAc c ount i ngSt a nda r dsBoa r d Ans we r :C Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 7)Whi c hoft hef ol l owi ngus e rgr oupsc ons i s t sofi ndi vi dual st ha tpr o vi degui da nc et oot he r si n maki ngi nve s t me nta ndc r e di tde c i s i ons ? A)fina nc i a la na l ys t s B)e qui t yi nv e s t or s C)c r e di t or s D)s uppl i e r s Ans we r :A Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 8)Whi c hoft hef ol l owi ngus e rgr oupsc ons i s t sofi ndi vi dual swhoe x pe c tt or e c e i vear e t ur nont he i r i nve s t ment ? A)e mpl oye e s B)e qui t yi nv e s t or s C)c r e di t or s D)s uppl i e r sandc us t ome r s Ans we r :B Di ff: 1 Va r :1 Pa geRe f :4 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 9)Whi c hoft hef ol l owi ngus e rgr oupsc ons i s tofc ompa ni est ha ta na l yz efinanc i a li nf or ma t i ont oi de nt i f y t her epor t i nge nt i t y' sobj e c t i ve s ,a s s umpt i ons , ove r al lbus i ne s ss t r a t e gy , andc a pabi l i t i e s ? A)c ompe t i t or s B)c r e di t or sa ndot he rde bti nve s t or s C)e mpl oye e sa ndl aboruni ons D)s uppl i e r sandc us t ome r s Ans we r :A Di ff: 1 Va r :1 Pa geRe f :5 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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2 0)Whi c hpar t yi nvol ve di nt hefina nc i alr e por t i ngpr oc e s spr ovi de sas s ur a nc et ha tt hefinanc i a l s t a t e ment spr e pa r e dbymana ge me ntf a i r l ypr e s e ntt hefina nc i alpos i t i onandpe r f or ma nc eoft he c ompa ny ? A)s t a nda r ds e t t e r s B)r e gul a t or s C)ac c ount i ngpr e pa r e r s D)e xt e r na la udi t or s Ans we r :D Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 1)Whi c hr e gul a t or ybodys e t saudi t i ngs t a nda r dsando ve r s e e st hea udi t sofpubl i cc ompani e si nt he Uni t e dSt a t e s ? A)Publ i cCompanyAc c ount i ngOv er s i ghtBoar d( PCAOB) B)Fi nanc i a lAc c ount i ngSt anda r dsBoar d( F ASB) C)Ame r i c a nI ns t i t ut eofCe r t i fie dPubl i cAc c ount a nt s( AI CP A) D)Se c ur i t i e sandEx c hangeCommi s s i on( SEC) Ans we r :A Di ff: 2 Va r :1 Pa geRe f :6 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

2 2)Whi c hoft hef ol l owi ngt ype sofi nf or ma t i onwoul dbec a t e gor i ze da sfinanc i a li nf or ma t i on? A)As s e tval ue sgove r ne dbyac c ount i ngs t anda r ds B)Foot not edi s c l os ur e si na nnua lr e por t s C)Audi t or ' sr e por t D)Al loft heabove Ans we r :D Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

2 3)Equi t yi nve s t or si nc l udea l lbutwhi c hoft hef ol l owi ng ? A)Pa r t ne r s B)Sha r e hol de r s C)Bondhol de r s D)Sol epr opr i e t o r Ans we r :C Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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2 4)Wha tgr ouporor ga ni z a t i onbo t hpr ot e c t si nve s t or sa ndove r s e e st heac c ount i ngs t a nda r ds e t t i ng pr oc e s si nt heUni t e dSt a t e s ? A)Publ i cac c ount i ngfir ms B)Ame r i c a nI ns t i t ut eofPubl i cAc c ount a nt s C)Uni t e dSt a t esSe c ur i t i esandEx c ha ngeCommi s s i on D)Fi nanc i alAc c ount i ngSt a nda r dsBoar d Ans we r :C Di ff: 1 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

2 5)How doe sac c ount i nghe l pi nt hec a pi t a la l l oc a t i onpr oc e s s ? Ans we r :Fi na nc i a lac c ount i ngpr ovi de si nf or ma t i ont ha te na bl e sus er st oe va l ua t ee c onomi ce nt i t i e sand makee ffic i e ntr es our c ea l l oc a t i onde c i s i onsba s e dont her i s ksandr e t ur nsofapa r t i c ul a ri nve s t me nt . Thi spr oc e s sdi r e c t sc a pi t a lflowst ot he i rmos tpr oduc t i veus e s .Thenot i onof" e ffic i e ntande ffe c t i ve " a l l oc a t i onofc api t alhe l psdr i vec api t a l i s te c onomi e sands oc i e t i e st ogr e a t e rs t anda r dsofl i vi ng. To pr ovi deunr e l i a bl ea ndi r r e l e vanti nf or ma t i onl e a dst opoorc api t a lal l oc a t i onwhi c hadve r s e l yaffe c t st he s ec ur i t i e sma r ke t . Ani ne ffic i e nta ndwa s t e f ulal l oc a t i onwoul dr e wa r dpoor l yr une nt i t i e sunt i lt he y ul t i ma t e l yflounde rorgobus t . Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Re fle c t i v et hi nki ng

2 6)I nwha twa ysdoe sac c ount i ngi nf or ma t i onpr oac t i ve l yi nt e r a c twi t hi t se nvi r onme nt ? Ans we r :Fi na nc i a lac c ount i ngi spr oa c t i vei nt ha ti tc a nc hangeori nflue nc ei t se nvi r onme ntby pr ovi di ngf e e dba c ki nf or ma t i ont ha ti sus e dbyor ga ni z a t i onsa ndi ndi vi dua l st or e s ha pet hee c onomy . Ac c ount i ngi nf or ma t i oni sus e dt oe ffic i e nt l yal l oc a t ec a pi t a lr e s our c e st hr oughoutt hee c onomy . Ac c ount i ngs t andar dsc a nal s oi nflue nc ema na ge r i albe ha vi or . Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Re fle c t i v et hi nki ng

2 7)Wha ti sme a ntbyge ne r a l pur pos efina nc i a ls t a t e me nt s ? Ans we r :Publ i s he dfina nc i als t a t e me nt sar ec a l l e dg e ne r a l pur p o s efina nc i a ls t a t e me nt b s e c a us et he y pr ovi dei nf or ma t i ont oawi des pe c t r um ofus e rgr oups : i nve s t or s ,c r e di t or s ,fina nc i a lanal ys t s , c us t ome r s ,e mpl oye es ,c ompe t i t or s , s uppl i e r s ,uni ons ,andgo ve r nmenta ge nc i e s . Al t houghc ons i de r e d ge ne r alpur pos e , mos tfinanc i a li nf or ma t i oni spr ovi de dt os a t i s f yus e r swi t hl i mi t e dabi l i t yora ut hor i t y t oobt a i naddi t i ona li nf or ma t i on, whi c hi nc l ude si nve s t or sandc r e di t or s . Di ff: 2 Va r :1 Obj e c t i ve :1 . 1 I FRS/GAAP:GAAP/I FRS AACSB:Re fle c t i v et hi nki ng

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1.2 Role of Standard Setters 1 )I FRSr e f e r st oge ner a l l yac c e pt e dac c ount i ngs t a nda r dst ha ta ppl ygl oba l l y . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:I FRS AACSB:Appl i c a t i onofknowl e dge

2 )S t andar ds e t t e r sde ve l opa c c ount i ngs t anda r dsba s e donna t ur ale c onomi cl a ws . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

3 )TheF ASBa ndt heI FRSha vebe e nwor ki ngt oge t he rt oc onve r geU. S. a ndi nt e r na t i onals t a nda r dst o e l i mi na t edi ffe r e nc e s . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

4 )TheF ASBpr omul ga t e sa c c ount i ngs t a nda r dsi nt heU. S. andt heI FRSi s s uesi nt e r na t i ona lac c ount i ng s t anda r ds . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

5 )Ac c ount a nt si nt heUni t e dSt a t e sdonotne edt ol e a r ni nt e r na t i onalac c ount i ngs t a nda r ds . Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

6 )TheSECpe r mi t st heus eofI FRSbas e dfinanc i a ls t a t e me nt sbyi nt e r na t i ona lc ompa ni e swi t hs ha r e s t r adi ngonU. S. s t oc ke xc hange s . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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7 )Whe nac c ount a nt swor kont hefina nc i a ls t a t e me nt sofU. S.c ompani e swi t hf or ei gns ubs i di ar i es pr e pa r e dunde rI FRSi nt hehomec ount r i es ,t heac c ount a nt sdonotc onve r tt hes ubs i di ar i es ' financ i al s t a t e ment st oU. S. GAAP . Ans we r :F ALSE Di ff: 1 Va r :1 Pa geRe f :9 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

8 )TheAme r i c a nI ns t i t ut eofCe r t i fie dPubl i cAc c ount a nt st e s t sI FRSont heuni f or m CP Ae xam. Ans we r :TRUE Di ff: 1 Va r :1 Pa geRe f :8 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

9 )Whi c hoft hef ol l owi ngs t a t e me nt sc or r e c t l yi de nt i fie sa c c ount i ngs t andar ds et t e r s ? A)TheAI CP Apr omul ga t e sa c c ount i ngs t a nda r dsi nt heU. S. andt heI FRSi s s ue si nt e r na t i ona l a c c ount i ngs t anda r ds . B)TheAI CP Apr omul ga t e sac c ount i ngs t a ndar dsi nt heU. S. andt heI ASBi s s ue si nt e r na t i ona l a c c ount i ngs t anda r ds . C)TheF ASBpr omul ga t e sa c c ount i ngs t anda r dsi nt heU. S.a ndt heI FRSi s s ue si nt e r na t i onala c c ount i ng s t anda r ds . D)TheF ASBpr omul ga t e sa c c ount i ngs t andar dsi nt heU. S. a ndt heI AS Bi s s ue si nt e r na t i ona la c c ount i ng s t anda r ds . Ans we r :D Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 0)Whi c hoft hef ol l owi ngs t a t e me nt si sf a l s e ? A)TheSECpe r mi t st heus eofI FRSba s e dfinanc i a ls t a t e me nt sbyi nt e r na t i ona lc ompa ni e swi t hs ha r e s t r adi ngonU. S. s t oc ke xc hange s . B)NonU. S.c ompani esope r a t ei nt heUni t e dSt a t e sbutpr e par et he i rfina nc i als t a t e me nt sus i ngI FRS. C)Ac c ount a nt smus tc onve r tt oU. S.GAAPt heI FRSfina nc i als t a t e me nt soff or e i gns ubs i di a r i e st ha t be l ongt oU. S. c ompa ni e s . D)Theac c ount i ngpr of e s s i onhasde t e r mi ne dt ha tawor ki ngknowl e dgeofI FRSi snoti mpor t antf or a c c ount a nt swor ki ngi nt heUni t e dSt a t e s . Ans we r :D Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

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1 1)Whi c hoft hef ol l owi ngi sno tar e a s onwhyana c c ount a nti nt heUni t e dS t a t e ss houl dl e ar n i nt e r na t i ona la c c ount i ngs t a ndar ds ? A)TheUni t e dSt a t e shaspl a nst oa doptI FRSi nt hene arf ut ur e . B)TheSECpe r mi t st heus eofI FRSba s e dfinanc i a ls t a t e ment sbyi nt e r na t i onalc ompa ni e swi t hs ha r e s t r adi ngont heU. S.s t oc ke xc hange s . C)Ana c c ount a ntma ywor kf or , oras s i s t , af or e i gnc ompanyt ha tope r a t e si nt heU. S.a ndus e sI FRSf or fina nc i alr e por t i ng . D)U. S. c ompani e sope r a t es ubs i di a r i e sout s i deoft heUni t e dSt a t e swhi c hr e por tunde rI FRSi nt he i r homec ount r i e s . Ans we r :A Di ff: 1 Va r :1 Pa geRe f :8 9 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 2)Ac c ount i ngs t anda r dss e t t e r sdowhi c hoft hef ol l owi ng ? A)pr ot e c ti nve s t or sandc r e di t or s B)de ve l opc onc e pt s , r ul e s ,a ndgui de l i ne sf orfina nc i alr e por t i ng C)as s ur et r a ns pa r e ntandt r ut hf ulr e por t i ngandguar ant e et hee ffic i e ntf unc t i oni ngoft hec api t a lmar ke t s D)pr os e c ut evi ol a t or soft he i rr ul e sa ndgui de l i ness oast omai nt a i nt hepubl i ct r us ta ndt oe ns ur et he e ffic i e ntf unc t i oni ngofc api t a lma r ke t s Ans we r :B Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Appl i c a t i onofknowl e dge

1 3)Li s tf ourr e as onswhyi ti si mpor t antf oranac c ount a nti nt heUni t e dS t a t e st ol e ar ni nt e r na t i ona l a c c ount i ngs t anda r ds . Ans we r : • U. S. c ompa ni e sope r a t es ubs i di ar i e sout s i deoft heUni t e dSt a t e s . • NonU. S. c ompani e sope r a t ei nt heUni t e dS t a t e sandpr e pa r et he i rfina nc i a ls t a t e me nt sus i ngI FRS. • TheSECpe r mi t st heus eofI FRSba s e dfinanc i als t a t e me nt sbyi nt e r na t i onalc ompani eswi t hs ha r e s t r adi ngonU. S. s t oc ke xc hange s . • U. S. ac c ount a nt sandaudi t or sne e dawor ki ngknowl e dgeofI FRSt oi mpl e me ntgl obals t a nda r dsi n c ompa ni e sandpe r f or m audi t s . • ManyU. S.ac c ount a nt snow s pe ndt i mewor ki ngout s i deoft heUni t e dSt a t e s . • Thea c c ount i ngpr of e s s i onha sde t e r mi ne dt ha tawor ki ngknowl e dgeofI FRSi si mpor t a ntf ort oda y' s a c c ount a nt . Di ff: 1 Va r :1 Obj e c t i ve :1 . 2 I FRS/GAAP:GAAP/I FRS AACSB:Re fle c t i v et hi nki ng

9 Copyr i ght©2 0 19Pe a r s onEduc a t i on, I nc .

1.3 The Standard-Setting Process 1 )TheU. S. Congr e s shasgi ve nt heSe c ur i t i e sandEx c ha ngeCommi s s i ont hepo we rt opr omul ga t e a c c ount i ngs t anda r dsf ora l lpubl i c l yt r ade dfir ms . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

2 )Ac c ount i ngs t anda r ds e t t i ngbe ga ni nt heUni t e dSt a t e swi t ht he1 934Se c ur i t i e sEx c hangeAc t . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

3 )TheSe c ur i t i e sa ndEx c hangeCommi s s i onc ur r e nt l yde l e ga t e si t ss t a nda r ds e t t i ngpowe rt ot heAI CP A, apr i va t es e c t oror ga ni z a t i on. Ans we r :F ALSE Di ff: 1 Va r :1 Pa geRe f :9 10 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

4 )Offic i alU. S.GAAPc ons i s toft hebul l e t i ns ,opi ni ons , ands t a t e ment si s s ue dbyt heCAP , t heAPB,and t heF ASB. Ans we r :F ALSE Di ff: 1 Va r :1 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

5 )TheF ASBAc c ount i ngS t anda r dsCodi fic a t i oni st hes i ngl es our c eofGAAPi nt heUni t e dS t a t e s . Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

6 )Bo t hfina nc i alandgove r nme nt a la c c ount i ngs t a nda r dsa r eunde rt heaus pi c e soft heFi na nc i al Ac c ount i ngFounda t i on. Ans we r :TRUE Di ff: 1 Va r :1 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

1 0 Copyr i ght©2 0 19Pe a r s onEduc a t i on, I nc .

7 )TheF ASBi sas ubc ommi t t e eoft heAI CP A. Ans we r :F ALSE Di ff: 1 Va r :1 Pa geRe f :1 0 Obj e c t i ve :1 . 3 I FRS/GAAP:GAAP AACSB:Appl i c a t i onofknowl e dge

8 )TheF AFfina nc e st heF ASBpr i ma r i l ybyf undsf r om t hePubl i cCompanyAc c ount i ngOve r s i ghtBoar d whi c has s e s s e sf e e sa gai ns tc ompani e st ha ti s s uee qui t ys e c ur i t i e s . Ans we r :TRUE D...