The two major standard-setting organizations in the world are
a. Financial Accounting Standards Board (FASB) and the International Organization of Securities Commission (IOSCO).
b. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
c. The International Accounting Standards Board (IASB) and International Organization of Securities Commission (IOSCO).
d. The International Accounting Standards Board (IASB) and the Standards Advisory Council (SAC).
2. When comparing U.S. GAAP and International Financial Reporting Standards (IFRS)
a. IFRS are considered more comprehensive than U.S. GAAP.
b. IFRS contain more implementation guidance than U.S. GAAP.
c. IFRS are considered more principles-based than U.S. GAAP.
d. All of the choices are correct regarding U.S. GAAP and IFRS.
3. Which of the following statements is true regarding the International Accounting Standards Board (IASB)?
a. The IASB is a regulatory agency with enforcement powers for its International Financial Reporting Standards (IFRS).
b. The IASB is a public organization, funded by taxpayer dollars from member countries.
c. Is comprised of 13 members.
d. All of the choices are correct regarding the IASB.
4. Which of the following has the highest authoritative support?
a. International Financial Reporting Standards.
b. International Accounting Standards.
c. Interpretations of the IFRIC.
d. Framework for Financial Reporting.
5. What is a purpose of having a conceptual framework?
a. To make sure that economic activity can be identified with a particular legal entity.
b. To segregate activities among competing companies.
c. To provide comparable information for different companies.
d. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.
6. Which of the following is a fundamental quality of useful accounting information?
a. Comparability.
b. Relevance.
c. Neutrality.
d. Materiality.
7. Which of the following is an ingredient of relevance?
a. Verifiability.
b. Timeliness.
c. Predictive value.
d. Neutrality.
8. Which of the following is an ingredient of faithful representation?
a. Predictive value.
b. Materiality.
c. Neutrality.
d. Confirmatory value.
9. The two fundamental qualities that make accounting information useful for decision making are
a. comparability and timeliness.
b. materiality and neutrality.
c. relevance and faithful representation.
d. faithful representation and comparability.
10. In the International Accounting Standards Board’s (IASB’s) Conceptual Framework, an ingredient of a fundamental qualitative characteristic is
a. Neutrality.
b. Verifiability.
c. Timeliness.
d. Understandability.
11. In the International Accounting Standards Board’s (IASB’s) Conceptual Framework, a fundamental qualitative characteristic is
a. Materiality.
b. Faithful representation.
c. Decision usefulness.
d. Neutrality
12. A series of equal receipts at equal intervals of time when each receipt is received at the beginning of each time period is called an
a. ordinary annuity.
b. annuity in arrears.
c. annuity due.
d. unearned receipt.
13. An amount is deposited for eight years at 8%. If compounding occurs quarterly, then the table value is found at
a. 8% for eight periods.
b. 2% for eight periods.
c. 8% for 32 periods.
d. 2% for 32 periods.
14. Present value is
a. the value now of a future amount.
b. the amount that must be invested now to produce a known future value.
c. always smaller than the future value.
d. all of these answer choices are correct.
15. What is the primary difference between an ordinary annuity and an annuity due?
a. The timing of the periodic payment
b. The interest rate
c. Annuity due only relates to present values
d. Ordinary annuity only relates to present values