Assignment for week 1 - CA1-1(FASB and Standard-Setting...

CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to
identify as true or false. If false, explain why the statement is false.
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1. GAAP is the term used to indicate the whole body of FASB authoritative literature.
(True)
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2. Any company claiming compliance with GAAP must comply with most standards and
interpretations but does not have to follow the disclosure requirements. (False)
Companies claiming compliance with GAAP must follow the disclosure
requirements as well.
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3. The primary governmental body that has influence over the FASB is the SEC . (True)
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4. The FASB has a government mandate and therefore does not have to follow due
process (False) FASB should operate in transparency to the public through due
process system.
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-
choice questions.
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1. GAAP stands for:
o
(a) governmental auditing and accounting practices.
o
(b) generally accepted attest principles.
o
(c) government audit and attest policies.
o
(d) generally accepted accounting principles .
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2. Accounting standard-setters use the following process in establishing accounting
standards:
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(a) Research, exposure draft, discussion paper, standard.
o
(b) Discussion paper, research, exposure draft, standard.
o
(c) Research, preliminary views, discussion paper, standard.
o
(d) Research, discussion paper, exposure draft, standard .
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3. GAAP is comprised of:
o
(a) FASB standards, interpretations, and concepts statements.
o
(b) FASB financial standards.
o
(c) FASB standards, interpretations, EITF consensuses, and accounting rules
issued by FASB predecessor organizations.
o
(d) any accounting guidance included in the FASB Codification .
E2-5 (Elements of Financial Statements) Ten interrelated elements that are most directly
related to measuring the performance and financial status of an enterprise are provided below.
Assets Distributions to owners Expenses
Liabilities Comprehensive income Gains
Equity Revenues Losses
Investments by owners
Identify the element or elements associated with the 12 items below.