financial accounting

Decent Essays
21. Generally accepted accounting principles c. derive their credibility and authority from general recognition and acceptance by the accounting profession. 22. A soundly developed conceptual framework of concepts and objectives should d. all of these. 23. Which of the following (a-c) are not true concerning a conceptual framework in account-ing? c. It should be based on fundamental truths that are derived from the laws of nature. S24. Which of the following is not a benefit associated with the FASB Conceptual Framework Project? d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. 25. In the conceptual framework for financial…show more content…
all of these. 47. In classifying the elements of financial statements, the primary distinction between revenues and gains is c. the nature of the activities that gave rise to the transactions involved. 48. A decrease in net assets arising from peripheral or incidental transactions is called a(n) c. loss. 49. One of the elements of financial statements is comprehensive income. As described in Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to d. none of these. 50. Which of the following elements of financial statements is not a component of compre-hensive income? b. Distributions to owners P51. Which of the following is false with regard to the element "comprehensive income"? d. It excludes prior period adjustments (transactions that relate to previous periods, such as corrections of errors). S52. According to the FASB conceptual framework, earnings b. exclude certain gains and losses that are included in comprehensive income. S53. According to the FASB Conceptual Framework, the elementsassets, liabilities, and equitydescribe amounts of resources and claims to resources at/during a a. Yes No S54. Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? a. Monetary unit assumption. S55. During the lifetime of an entity accountants
Get Access