AC 550 Mid-Term
4 Pages

AC 550 Mid-Term

Course Number: ACCT 505, Spring 2012

College/University: DeVry Alpharetta

Word Count: 312

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1. Question: (TCO A) Which of the following statements is not an objective of financial reporting? StudentAnswer: Provide information that is useful in investment and credit decisions. Provide information about enterprise resources, claims to those resources, and changes to them. Provide the liquidation value of a company. Provide information that is useful in assessing cash flow prospects....

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A) 1. Question: (TCO Which of the following statements is not an objective of financial reporting? StudentAnswer: Provide information that is useful in investment and credit decisions. Provide information about enterprise resources, claims to those resources, and changes to them. Provide the liquidation value of a company. Provide information that is useful in assessing cash flow prospects. InstructorExplanation: PointsReceived: General Feedback: Chapter 1 5of5 Comments: 2. Question: (TCO A) Under Sarbanes Oxley, the new law does not: StudentAnswer: require a national CPA license for all CPAs. establish an oversight board, called the Public Company Accounting Oversight Board, for accounting practices. require a company to maintain a system of internal controls. require codes of ethics for senior financial officers. InstructorExplanation: General Feedback: Chapter 1 *Timesaredisplayedin(GMT07:00)MountainTime(US&Canada) 1. Question: (TCO D) The net assets of a business equal are to StudentAnswer: current assets minus current liabilities. total assets plus total liabilities. total assets minus total stockholders' equity. None of these. InstructorExplanation: PointsReceived: General Feedback: Chapter 5 5of5 Comments: 2. Question: (TCO A) Why are some of the major differences between i-GAAP and U.S. GAAP? Explain in detail. StudentAnswer: Significantdifferences includethefactthattheU.S. GAAPmodelisrulesbased andIFRSisbasedonbroad principles.IFRS'srules applicationsaremore interpretativeby managementthanU.S. GAAPwhichuseshistorical costforassetvaluationfor mostassets.Thisis especiallytrueintheareaof longtermassets,whereas IFRSallowsforfairvaluefor mostassets.Whenanasset iswrittendownunderU.S. GAAP,itcannotbeartificially writtenup.UnderIFRS, however,itcanbeinmany cases.Changingfrom historicalcosttofairvalue methodologywillcreate artificialincrease,or decreases,intheprofitsofa *Timesaredisplayedin(GMT07:00)MountainTime(US&Canada)
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