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Unformatted text preview: 1. Companies that are listed on a stock exchange are required to submit their financial statements to the A) AICPA. B) APB C) FASB. D) SEC. 2. The Financial Accounting Standards Board employs a "due process" system which A) is an efficient system for collecting dues from members. B) enables interested parties to express their views on issues under consideration. C) identifies the accounting issues that are the most important. D) requires that all accountants must receive a copy of financial standards. 3. The purpose of the Emerging Issues Task Force is to A) develop a conceptual framework as a frame of reference for the solution of future problems. B) lobby the FASB on issues that affect a particular industry. C) do research on issues that relate to long-term accounting problems. D) issue statements which reflect a consensus on how to account for new and unusual financial transactions that need to be resolved quickly. 4. The most significant current source of generally accepted accounting principles is the A) AICPA. B) SEC. C) APB. D) FASB. 5. A soundly developed conceptual framework of concepts and objectives should A) increase financial statement users' understanding of and confidence in financial reporting. B) enhance comparability among companies' financial statements. C) allow new and emerging practical problems to be more quickly soluble. D) all of these. 6. Financial information exhibits the characteristic of consistency when A) expenses are reported as charges against revenue in the period in which they are paid. B) accounting entities give accountable events the same accounting treatment from period to period. C) extraordinary gains and losses are not included on the income statement. D) accounting procedures are adopted which give a consistent rate of net income. 7. A decrease in net assets arising from peripheral or incidental transactions is called a(n) A) capital expenditure. B) cost. C) loss. D) expense. 8. Revenue generally should be recognized A) at the end of production. B) at the time of cash collection. C) when realized. D) when realized or realizable and earned. 9. The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as the A) conservatism constraint....
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This note was uploaded on 09/25/2009 for the course FN 102 taught by Professor Drsingh during the Spring '09 term at Punjab Engineering College.
- Spring '09