Test Bank for Financial Accounting

CHAPTER 1 FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS IFRS questions are available at the end of this chapter. TRUE-FALSE —Conceptual Answer No. Description 1. Definition of financial accounting. 2. Purpose of financial statements. 3. 4. Capital allocation process. 5. Objective of financial reporting. 6. Decision-Usefulness approach. 7. Users of financial statements. 8. Committee on Accounting Procedure. 9. Passage of FASB standards. 10. Financial Accounting Concepts. 11. Creation of Accounting Principles Board. 12. FASB Codification. 13. Code of Professional Conduct. 14. GAAP and political action. 15. Public Company Accounting Oversight Board. 16. Expectations gap. 17. Financial reports. 18. Fair value information. 19. International Financial Reporting Standards. 20. Ethical issues. MULTIPLE CHOICE 21. Financial accounting. 22. Users of financial reports. 23. Identify the major financial statements. 24. Financial reporting entity. 25. Differences between financial and managerial accounting. 26. Financial reporting communication. 27. Managerial accounting. 28. 29. Efficient use of resources. 30. 31. Financial statement information. 32. Accounting profession challenge. 33. Financial reporting objective. 34. Financial statements primary users.

Test Bank for Intermediate Accounting, Fourteenth Edition 35. Investor’s decision making. (cont.) 36. Accrual accounting. 37. Objective of financial reporting perspective. 38. Meaning of “generally accepted.” 39. Common set of standards and procedures. 40. Limitation of general purpose financial statements. 41. Securities and Exchange Commission and accounting standard setting. 42. Due process in FASB standard setting. 43. Organizations responsible for setting accounting standards. 44. Reason for Accounting Principles Board creation 45. Organization issuing Accounting Research Bulletins. 46. Characteristic of GAAP. 47. Characteristics of GAAP. 48. FASB accounting standards. 49. FASB standard passage. 50. Purpose of Emerging Issues Task Force. 51. AICPA role in standard setting. 52. Role of SEC. 53. Powers of the SEC. 54. SEC enforcement. 55. Creation of FASB. 56. Appointment of FASB members. 57. Purpose of the Financial Accounting Foundation. 58. Characteristics of FASB. 59. FASB and "due process" system. 60. Publications of FASB. 61. Purpose of FASB Technical Bulletins. 62.