Intermediate Accounting Chapter 1

17 Questions | By Jaypolansky | Last updated: Mar 22, 2022 | Total Attempts: 2140

Questions

Settings

Create your own Quiz

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