Intermediate Accounting Test Bank Chapter 1

5120 Words Apr 10th, 2011 21 Pages
CHAPTER 1

FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS

IFRS questions are available at the end of this chapter.

TRUE-FALSE—Conceptual

Answer No. Description

F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Financial reports. F 6. Fair value information. F 7. Objectives of financial reporting. F 8. Accrual accounting. T 9. Generally accepted accounting principles. T 10. Users of financial statements. F 11. Committee on Accounting Procedure. F 12. Passage of FASB standards. T 13. Financial Accounting Concepts. T 14. Creation of Accounting Principles Board. F 15. Definition of financial accounting. T 16. Code of
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3. Describe some of the challenges facing accounting.

4. Identify the objectives of financial reporting.

5. Explain the need for accounting standards.

6. Identify the major policy-setting bodies and their role in the standard-setting process.

7. Explain the meaning of generally accepted accounting principles (GAAP) and the role of the codification for GAAP.

8. Describe the impact of user groups on the rule-making process.

9. Understand issues related to ethics and financial accounting.

SUMMARY OF LEARNING OBJECTIVES BY QUESTIONS

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