review test 2 - View Attempt 2 of 4 Title Started Submitted...

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View Attempt 2 of 4  Title: Review Exam Started: February 15, 2008 3:12 PM Submitted: February 15, 2008 4:57 PM Time spent: 01:45:06  Total score: 31/40 = 77.5%   Total score adjusted by 0.0  Maximum possible  score: 40  1.      The body that has the power to prescribe the accounting practices and  standards to be employed by companies that fall under its jurisdiction is the:     Student Response Correct  Answer a.  FASB.    b.  AICPA.    c. SEC.    d.  APB.         2.   
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  The Financial Accounting Foundation:     Student Response Correct  Answer a. oversees the operations of the FASB.    b.  oversees the operations of the AICPA.    c.  provides information to interested parties on  financial reporting issues.    d.  works with the Financial Accounting Standards  Advisory Council to provide information to interested  parties on financial reporting issues.         3.      Accrual accounting is used because:     Student Response Correct  Answer 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.         4.   
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  The underlying theme of the conceptual framework is:     Student Response Correct  Answer a. decision usefulness.    b.  understandability.    c.  reliability.    d.  comparability.         5.      According to  Statement of Financial Accounting Concepts No. 2,  timeliness is  an ingredient of the primary quality of:  Option Relevance Reliability A Yes Yes B No Yes C Yes No D No No     Student Response Correct  Answer a.  A    b.  B    c. C    d.  D         6.   
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  The assumption that a business enterprise will not be sold or liquidated in the  near future is known as the:     Student Response Correct  Answer a.  economic entity assumption.    b.  monetary unit assumption.    c.  conservatism assumption.    d. none of these.         7.      Which of the following is not an objective of financial reporting?     Student Response Correct  Answer a.  To provide information about economic resources,  the claims to those resources, and the changes in  them.    b.  To provide information that is helpful to investors  and creditors and other users in assessing the  amounts, timing, and uncertainty of future cash  flows.   
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review test 2 - View Attempt 2 of 4 Title Started Submitted...

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