Intermediate Accounting Chapter 1

17 Questions | Total Attempts: 2140

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Intermediate Accounting Quizzes & Trivia

Intermediate Accounting Chapter 1


Questions and Answers
  • 1. 
    Which of the following is correct about soft assets?
    • A. 

      They can lose their value at anytime

    • B. 

      An example is a patent

    • C. 

      They are intangible

    • D. 

      All of the above

  • 2. 
    There are two sets of accounting standards GAPP and iGAPP. By the year ______ GAPP will be phased out for iGAPP.
    • A. 

      2015

    • B. 

      2016

    • C. 

      2020

    • D. 

      2030

  • 3. 
    Auditors ensure that information is _________ presented.
    • A. 

      Exactly

    • B. 

      Fairly

    • C. 

      Not

    • D. 

      Well

  • 4. 
    The purpose of financial accounting is to provide information for _______ use.
    • A. 

      External

    • B. 

      Internal

    • C. 

      Strictly governmental

  • 5. 
    Which is not a component of shareholder's equity?
    • A. 

      Retained earnings

    • B. 

      AOCI (accumulate other comprehensive income)

    • C. 

      Cash

    • D. 

      Paid-in capital

  • 6. 
    The expectations gap exists between...
    • A. 

      The public and accountants

    • B. 

      Accountants and the government

    • C. 

      Accountants and the economy

    • D. 

      The public and the government

  • 7. 
    Which is NOT a challenge for accountants?
    • A. 

      Timeliness

    • B. 

      Providing non-financial information

    • C. 

      Soft assets

    • D. 

      Backward looking info

  • 8. 
    Which is NOT a component of the Sarbannes-Oxley Act?
    • A. 

      Establishment of the PACOB

    • B. 

      CEOS and CFOs must hand sign statements

    • C. 

      Companies must present financial information exactly

    • D. 

      Auditors limit of 5 years

    • E. 

      Statements must be prepared in a timely fashion

    • F. 

      Board members must be independent and have financial expertise

  • 9. 
    Which party does not help set accounting standards?
    • A. 

      AICPA

    • B. 

      SEC

    • C. 

      FASB

    • D. 

      Congress

  • 10. 
    Which FASB pronouncement does not establish GAAP?
    • A. 

      Stds. Interps Staff Pos

    • B. 

      Fin Acct Concepts

    • C. 

      EITF

  • 11. 
    Which type of statement would deal with an emerging issue involving a new form of online transaction?
    • A. 

      Staff position

    • B. 

      Intrepretation

    • C. 

      EITF

    • D. 

      Fin acct concepts

  • 12. 
    What kind of information is gathered for financial accounting?
    • A. 

      All

    • B. 

      Some

    • C. 

      Relevant

    • D. 

      Profitable

  • 13. 
    What is the purpose of financial statements?
    • A. 

      Making decisions

    • B. 

      Asthetics

    • C. 

      Regulation

  • 14. 
    What is the purpose of the Sarbannes Oxley Act?
    • A. 

      Curb accidental accounting errors

    • B. 

      Curb fraud

    • C. 

      Curb paper waste

  • 15. 
    Which organization works under the Financial Accounting Foundation and FASB. It consults on major policy issues.
    • A. 

      FASAC

    • B. 

      FACS

    • C. 

      FDD

    • D. 

      SEC

  • 16. 
    Who are the primary users of general-purpose financial statements?
    • A. 

      Government

    • B. 

      Creditors

    • C. 

      Investors

    • D. 

      B and C

  • 17. 
    What was the fiirst accounting standards organization?
    • A. 

      Committee on Accounting Procedure

    • B. 

      Accounting Principles Board

    • C. 

      The SEC

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