Statement I: The objective of financial reporting is to provide insider information about the reporting entity. Statement II: The insider information provided about the reporting entity is useful only to international investors and lenders in making decisions about providing resources to the entity. a. Neither statement I is true nor statement II is true b. Only statement I is true c. Only statement II is true d. Statement I only false but statement II is true

Statement I: The objective of financial reporting is to provide insider information about the reporting entity. Statement II: The insider information provided about the reporting entity is useful only to international investors and lenders in making decisions about providing resources to the entity. a. Neither statement I is true nor statement II is true b. Only statement I is true c. Only statement II is true d. Statement I only false but statement II is true

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by...

See similar textbooks

Similar questions

PROBLEM True (t) or False (f) _____ Currently, both U.S. GAAP and the International Financial Reporting Standars are acceptable for international use. _____ The AICPA's Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accotungin principles. _____ Companies consider only quantitative factors in determining whether an item is material. _____ Financial statements are the principal means through which financial information is communicated to those outside an enterprise. _____ The matching principle states that debits must equal credits in each transaction. _____ The income statement is useful for helping to assess the risk or uncertainty of achieving future flows. _____ Revenues, gains, and distributions to owners all increase equity. _____ The balance sheet omits many items that are of financial value to the business but cannot be recorded objectivelty. _____ A strength of the income statement as compared to the…
Don’t answer if you not 100% sure , Do not provide AI generated answer It is wrong 36 In accordance with IAS 32 Financial Instruments: Presentation, which of the following describes an equity instrument? • A contractual obligation to deliver cash or another financial asset to another entity • A contract which is evidence of a residual interest in the assets of an entity after deducting all of its liabilities • A contractual right to exchange financial instruments with another entity under potentially favourable conditions • A contract which gives rise to both a financial asset of one entity and a financial liability of another
11. S1: For financial reporting purposes, an entity’s risk assessment process includes its identification, analysis, and management of risks relevant to the preparation of financial statements in accordance with applicable financial reporting framework. S2: The risk of material misstatement is broader in scope compared to business risks. Group of answer choices Both S1 and S2 are incorrect. Only S2 is correct. Both S1 and S2 are correct. Only S1 is correct.
16. International Accounting Standard (lAS) No.1 least likely requires which of the following? Neither assets and liabilities, nor income and expenses, may be offset unless required or permitted by a financial reporting standard. Audited financial statements and disclosures, along with updated information about the firm and its management, must be filed at least quarterly. Fair presentation of financial statements means faithfully representing the firm's events and transactions according to the financial reporting standards.
34 If the financial statements were prepared in accordance with international accounting standard framework, reliable and free from manipulation then what would be opinion of the auditor? a. Financial statements are true and fair b. All the options c. Financial statements are fair but not true d. Financial statements are true but not fair Clear my choice
3.B. A recent path in the financial disclosure literature has aimed at uncoveringinformation in the Notes (disclosures) of the financial statements through textualanalysis (i.e. Loughran and McDonald, 2014, 2015, 2016). What you think are theadvantages and disadvantages of textual analysis methods for uncoveringinformation helpful in financial analysis from the Notes (disclosures) of thefinancial statements? Recommended Reference Loughran, T., McDonald, B., 2014. Measuring Readability in FinancialDisclosures. The Journal of Finance 69, 1643-1671. Loughran, T., McDonald, B., 2015. The Use of Word Lists in Textual Analysis.Journal of Behavioral Finance 16, 1-11. Loughran, T., McDonald, B., 2016. Textual Analysis in Accounting and Finance: ASurvey. Journal of Accounting Research 54, 1187-1230.
1. Authoritative standards for IFRS include: a) International Financial Reporting Standards only. b) International Financial Reporting Standards and International Accounting Standards only. c) International Financial Reporting Standards, International Accounting Standards and GAAP only. d) International Financial Reporting Standards, International Accounting Standards and any GAAP standard recognized by an organized stock exchange. 2) Which of these statements regarding IFRS and GAAP is correct? a) GAAP is considered to be "principles-based". b) GAAP is considered to be less detailed than IFRS. c) IFRS is considered to be "principles-based" and less detailed than GAAP d) Both GAAP and IFRS are considered to be "rules-based", but GAAP tends to be more complex. 3) Which of the following organizations have committed to develop high-quality, compatible accounting standards that could be used for domestic and cross-border financial reporting. a) The Financial Accounting…
Q1. Investment banks are guilty of conflict of interest when they [ can select more than 1 answer] * A) pressure their analysts to produce research favorable to their client firms. B) permit executives of client firms to alter analysts' research on their firms. C) prohibit analysts from making negative or controversial comments about client firms. D) allow executives of potential client companies to buy underpriced initial public offerings of other companies' securities.
S1: For financial reporting purposes, an entity’s risk assessment process includes its identification, analysis, and management of risks relevant to the preparation of financial statements in accordance with applicable financial reporting framework.S2: The risk of material misstatement is broader in scope compared to business risks. Group of answer choices Both S1 and S2 are correct. Only S1 is correct. Both S1 and S2 are incorrect. Only S2 is correct.
Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or months
11) QBG Geojit Securities LLC, licensed by the Capital Market Authority as a Financial Intermediary buying securities from issuing companies and issue to public. What is the “process”called in financial system? a. Direct process b. All c. Factoring process d. Intermediary Process
1. Companies present sufficient financial information so the creditors and reasonably prudent investor will not be misled. 2. Companies listed on the philippine stock exchange report audited financial information annually and report unaudited information quarterly. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers