basic concepts - Question: TREPA-0001 Which of the...

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Unformatted text preview: Question: TREPA-0001 Which of the following accounting pronouncements is the most authoritative? Answers A : FASB Statement of Financial Accounting Concepts. B : FASB Technical Bulletin. C : AICPA Accounting Principles Board Opinion. D : AICPA Statement of Position. Answer Explanations A. This answer is incorrect. Refer to the correct answer explanation. B. This answer is incorrect. Refer to the correct answer explanation. C. Answer C is correct. The sources of established accounting principles that are generally accepted in the US are accounting principles promulgated by a body designated by the AICPA Council to establish such principles, pursuant to rule 203 of the AICPA Code of Professional Conduct. The most authoritative accounting pronouncements come from FASB Statements of Financial Accounting Standards and Interpretations, Accounting Principles Board Opinions, and AICPA Accounting Research Bulletins. Only answer C falls into this category. D. This answer is incorrect. Refer to the correct answer explanation. Question: TREPA-0002 The information provided by financial reporting pertains to Answers A : Individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. B : Individual business enterprises and industries, rather than to an economy as a whole or to members of society as consumers. C : Individual business enterprises and an economy as a whole, rather than to industries or to members of society as consumers. D : Individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. Answer Explanations A. Answer A is correct. SFAC 1 states that information provided by financial reporting pertains to individual business enterprises rather than to industries or an economy as a whole or to members of society as consumers. B. Answer B is incorrect. Refer to the correct answer explanation. C. Answer C is incorrect. Refer to the correct answer explanation. D. Answer D is incorrect. Refer to the correct answer explanation. Question: TREPA-0003 According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on Answers A : The need for conservatism. B : Reporting on managements stewardship. C : Generally accepted accounting principles. D : The needs of the users of the information. Answer Explanations A. Answer A is incorrect. Refer to the correct answer explanation. B. Answer B is incorrect. Refer to the correct answer explanation. C. Answer C is incorrect. Refer to the correct answer explanation. D. Answer D is correct. Per SFAC 1, the objectives of financial reporting focus on providing present and potential investors with information useful in making investment decisions. Financial statement users do not have the authority to prescribe the data they desire; therefore, they must rely on external financial reporting to satisfy their information needs....
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This note was uploaded on 12/08/2009 for the course FAR 5745 taught by Professor Philoreily during the Spring '09 term at Nova Southeastern University.

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basic concepts - Question: TREPA-0001 Which of the...

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