chapter7b - Chapter 7b 1. The generally accepted accounting...

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Chapter 7b 1. The generally accepted accounting principles have “substantial authoritative support” from organization such as the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). A. True B. Fals e 2. The FASB's conceptual framework includes the subjective issues of financial reporting. A. True B. Fals e 3. Accounting information has reliability if it makes a difference in a decision. A. True B. Fals e 4. Consistency means that a company uses the same accounting principles and methods from year to year. A. True B. Fals e 5. The elements of financial statements include such terms as assets, liabilities, equity, revenues, expenses, and management objectives. A. True B. Fals e 6. Principles provide a foundation for the accounting process.
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A. True B. Fals e 7. The economic entity assumption states that the activities of the entity should be consolidated with the activities of the owner. A. True B. Fals e 8. The full disclosure principle requires that companies disclose all circumstances and events within the entity. A. True B. Fals e 9. Materiality relates to an item's impact on a firm's overall financial condition and operations. A. True B. Fals e 10. Because a corporation is a legal entity separate and distinct from its owners, when corporations pay income taxes all obligations associated with those earnings is met. A. True
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chapter7b - Chapter 7b 1. The generally accepted accounting...

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