AC550 Midterm - 1(TCO A Which of the following statements...

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1. (TCO A) Which of the following statements is not an objective of financial reporting? (Points: 5) 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. 2. (TCO A) Under Sarbanes Oxley, the new law does not: (Points: 5) 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. 3. (TCO A) The cash method of accounting: (Points: 5) is used by most publicly-traded corporations for financial statement purposes. is not in accordance with the matching principle for most publicly-traded corporations. is often used on the income statement by large, publicly-held companies. All of the above is true. 4. (TCO A) The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is (Points: 5) relevance. reliability. verifiability. neutrality. 5. (TCO A) The two primary qualities for accounting information are: (Points: 5) relevance and reliability reliability and historical cost comparability and consistency none of the above. 6. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? (Points: 5) Assets Liabilities Gains Expenses 7. (TCO A) Which of the following is not a basic assumption underlying the financial accounting structure? (Points: 5) Economic entity assumption Going concern assumption Historical cost assumption. Monetary unit assumption 8. (TCO A) What is the quality of information that enables users to better forecast future operations? (Points: 5) Reliability. Materiality. Comparability. Relevance.
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9. (TCO A) Accounting information is considered to be relevant when it (Points: 5) can be depended on to represent the economic conditions and events that is intended to represent. is capable of making a difference in a decision.
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This note was uploaded on 07/25/2011 for the course ACCT 550 taught by Professor Cavendar during the Fall '10 term at Keller Graduate School of Management.

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AC550 Midterm - 1(TCO A Which of the following statements...

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