International Financial Reporting Standards and Accounting Principles

2762 Words Mar 27th, 2011 12 Pages
21. General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting.

22. Users of financial reports include all of the following except a. creditors. b. government agencies. c. unions. d. All of these are users.

23. The financial statements most frequently provided include all of the following except the a. balance sheet. b. income statement. c. statement of cash flows. d. statement of retained earnings.

24. The information provided by financial reporting pertains to a. individual
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35. Which of the following statements is not an objective of financial reporting? a. Provide information that is useful in investment and credit decisions. b. Provide information about enterprise resources, claims to those resources, and changes to them. c. Provide information on the liquidation value of an enterprise. d. Provide information that is useful in assessing cash flow prospects.

36. Accrual accounting is used because a. cash flows are considered less important. b. it provides a better indication of ability to generate cash flows than the cash basis. c. it recognizes revenues when cash is received and expenses when cash is paid. d. none of the above.

37. One objective of financial reporting is to provide a. information about the investors in the business entity. b. information about the liquidation values of the resources held by the enterprise. c. information that is useful in assessing cash flow prospects. d. information that will attract new investors.

38. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established it in an official pro-nouncement. b. it has been accepted as appropriate because of its universal application. c. both a and b. d. neither a nor b.

39. A common set of accounting standards and
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