(TCO A) Which of the following statements is
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.
(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.
(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.
(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)
(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.
(TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? (Points: 5)
(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
(TCO A) What is the quality of information that enables users to better forecast future operations? (Points: 5)
(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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