Question 1

A list of statements follows: 
a.GAAP identifies the___________ of financial reporting

b.Financial reporting should, above all, provide information that is_______ to external decision makers.

c.A company's financial statements and other means of financial reporting should include explanations and interpretations by its management to help external users understand the financial information provided. This represents management's to________out siders.

d.Financial reporting should provide information about how and the company's management___________ and_________ goverming board have dis charged their responsibilities to use the company's resources.

e.A specific objective of financial reporting is to provide information about how a company's cash flow can cause changes in the company's __________and_________
Required:
Fill in the words necessary to complete the statements.

Accepted Answer

The answer of A list of statements follows: 
a.GAAP identifies...

Question 2

A list of statements follows:

a.GAAP states that the two primary qualitative characteristics that make accounting information useful for decision-making purposes are _________and________

b.Corporations prepare quaterly financial statements in order to help achieve_____________ an ingredient of the primary quality of relevance.

c.Expensing the purchase of waste paper baskets that have a three-ye ar estimated useful life at the date of accuisition is a permissible procedure according to the_________ constraint.

d.The three components of relevance are _________,_________and________

e.______is the overall qualitative characteristic to be used in judging the quality of accountinge.
 Required:
Fill in the words necessary to complete the statements.

Accepted Answer

The answer of A list of statements follows:

a.GAAP states...

Question 3

How is the information concerning the company's net income, comprehensive income and their components useful to external users?

Accepted Answer

The answer of How is the information concerning the company's...

Question 4

The FASB's Conceptual Framework was established as a foundation for many interrelated objectives, concepts, principles and definitions. The following is a series of descriptive statements.   Required:
Match each objective with the appropriate statement by placing the appropriate letter in the space provided.

Accepted Answer

The answer of The FASB's Conceptual Framework was established as...

Question 5

FASB's Statements of Financial Accounting Concepts that are general proclamations. List two proclamations that form the basis of GAAP.

Accepted Answer

The answer of FASB's Statements of Financial Accounting Concepts that...

Question 6

The FASB and IASB describe four characteristics that enhance the decision usefulness of information that is relevant and faithfully represented. What are these characteristics and provide a brief explanation of each.

Accepted Answer

The answer of The FASB and IASB describe four characteristics...

Question 7

The boards are planning to evaluate various measurement techniques for assets and liabilities in order to satisfy objective and qualitative characteristics. To date nine measurement techniques have been identified.
Required:
List those techniques below. 
1__________________________
2__________________________
3__________________________
4__________________________
5__________________________
6__________________________
7__________________________
8__________________________
9__________________________

Accepted Answer

The answer of The boards are planning to evaluate various...

Question 8

List 5 of the important accounting assumptions that have had an impact on the development of GAAP and Accounting.

Accepted Answer

The answer of List 5 of the important accounting assumptions...

Question 9

A list of statements follows: 
a.__________on__________provides a measure of overall company performance. 
b._______________is the uncertainty or umpredictability of the future results of a company. 
c.________________________is the ability of a company to take effective actions to change the amounts and timing of cash flows. 
d.______________is the term used to describe how quickly a company can convert its assets into cash to pay a liability. 
e.______________refers to the ability of a company to maintain a given physical level of operations. Required:
Fill in the words necessary to complete the statements.

Accepted Answer

The answer of A list of statements follows: 
a.__________on__________provides a...

Question 10

A list of statements follows: 
a._______are applications of______ and_____ to differing types of transactions. 
b._________are specific implementation procedures.
c._________and______are broad and definitional
d.The ac counting projects for the conceptual framework project for financial accounting and reporting define the accounting______ how they should be______ and______
 Required:
Fill in the words necessary to complete the statements.

Accepted Answer

The answer of A list of statements follows: 
a._______are applications...

Question 11

Below is a list of the qualitative characteristics identified by GAAP. Following the list is a series of descriptive phrases.

Required:
Match each characteristic with the appropriate phrase.

Accepted Answer

The answer of Below is a list of the qualitative...

Question 12

Following the list below is a series of descriptions of inappropriate accounting procedures.   Required:
Indicate which item (or items) on the list was (were) violated in each description by placing the appropriate letter(s) in the space provided.

Accepted Answer

The answer of Following the list below is a series...

Question 13

Below is a list of accounting assumptions, conventions, and principles. Following the list is a series of descriptive statements.  Required:
Match each item in the list with its descriptive statement by placing the appropriate letter(s) in the space provided.

Accepted Answer

The answer of Below is a list of accounting assumptions,...

Question 14

What types of information would be helpful in accessing the amounts, timing, and uncertainty of future cash flows?

Accepted Answer

The answer of What types of information would be helpful...

Question 15

The FASB and IASB have joined forces to develop a joint Conceptual Framework. The joint task force's objective is to provide a sound foundation for both boards to develop accounting standards. This framework is essential to fulfilling the board's goal. What is the goal?

Accepted Answer

The answer of The FASB and IASB have joined forces...

Question 16

The tentative FASB and IASB Joint Conceptual Framework is presented below.
Required:
Provide the qualitative characteristic for each lettered box.

Accepted Answer

The answer of The tentative FASB and IASB Joint Conceptual...

Question 17

Presented below are five inappropriate accounting procedures that are being used by the Playground Equipment Corporation. 
a.On the year-end balance sheet, Playground Equipment Corporation reported its inventory at market value, which was greater than cost. As a result of this procedure, a gain was recognized on the company's income statement.
b.Mrs. Devlin, the president of the company, purchased an automobile for her son using the company's money. The company's accountant recorded the expenditure as salaries expense.
c.Playground Equipment Corporation reported income from operations of $5,000,000 for the current year. During the year, Devlin settled and paid a $5,000,000 class action lawsuit against the company resulting from damages incurred from the sale of defective products. The settlement was reported as a miscellaneous expense with no footnotes provided. 
d.Playground Equipment is going to issue additional common stock next year. In order to improve its income, the company switched from the LIFO inventory cost flow method to FIFO. The company did not disclose the accounting change. Comparative financial statements were prepared. 
e.The company made $3,000,000 of expenditures to expand a building that originally cost $5,000,000. The expenditures are expected to benefit operations over the building's remaining useful life of ten years. The expenditures were expensed as maintenance.
Required:
For each of the above items, list the accounting assumption(s), convention(s), or principle(s) that is (are) being violated.

Accepted Answer

The answer of Presented below are five inappropriate accounting procedures...

Question 18

Define the following terms as they relate to decision usefulness, the ultimate objective of accounting information. 
a.Relevance
b.Predictive value
c.Confirmatory value
d.Materiality

Accepted Answer

The answer of Define the following terms as they relate...

Question 19

List the eight phases of the Joint FASB and IASB Conceptual Framework Project. 
1___________________
2___________________
3___________________
4___________________
5___________________
6___________________
7___________________
8___________________

Accepted Answer

The answer of List the eight phases of the Joint...

Question 20

Below are the sources of information used in external decision making.   Required:
Match each element with the appropriate statement by placing the appropriate letter in the space provided.

Accepted Answer

The answer of Below are the sources of information used...

Quiz 2: Financial Reporting: Its Conceptual Framework

How is the information concerning the company's net income, comprehensive income and their components useful to external users?

FASB's Statements of Financial Accounting Concepts that are general proclamations. List two proclamations that form the basis of GAAP.

The FASB and IASB describe four characteristics that enhance the decision usefulness of information that is relevant and faithfully represented. What are these characteristics and provide a brief explanation of each.

The boards are planning to evaluate various measurement techniques for assets and liabilities in order to satisfy objective and qualitative characteristics. To date nine measurement techniques have been identified. Required: List those techniques below. 1 2 3 4 5 6 7 8 9__

List 5 of the important accounting assumptions that have had an impact on the development of GAAP and Accounting.

Below is a list of the qualitative characteristics identified by GAAP. Following the list is a series of descriptive phrases. Required: Match each characteristic with the appropriate phrase.

Following the list below is a series of descriptions of inappropriate accounting procedures. Required: Indicate which item (or items) on the list was (were) violated in each description by placing the appropriate letter(s) in the space provided.

Below is a list of accounting assumptions, conventions, and principles. Following the list is a series of descriptive statements. Required: Match each item in the list with its descriptive statement by placing the appropriate letter(s) in the space provided.

What types of information would be helpful in accessing the amounts, timing, and uncertainty of future cash flows?

The FASB and IASB have joined forces to develop a joint Conceptual Framework. The joint task force's objective is to provide a sound foundation for both boards to develop accounting standards. This framework is essential to fulfilling the board's goal. What is the goal?

The tentative FASB and IASB Joint Conceptual Framework is presented below. Required: Provide the qualitative characteristic for each lettered box.

Define the following terms as they relate to decision usefulness, the ultimate objective of accounting information. a.Relevance b.Predictive value c.Confirmatory value d.Materiality

List the eight phases of the Joint FASB and IASB Conceptual Framework Project. 1_________ 2_ 3_ 4_ 5_ 6_ 7_ 8_________

Below are the sources of information used in external decision making. Required: Match each element with the appropriate statement by placing the appropriate letter in the space provided.

Quiz 2: Financial Reporting: Its Conceptual Framework

How is the information concerning the company's net income, comprehensive income and their components useful to external users?

FASB's Statements of Financial Accounting Concepts that are general proclamations. List two proclamations that form the basis of GAAP.

The FASB and IASB describe four characteristics that enhance the decision usefulness of information that is relevant and faithfully represented. What are these characteristics and provide a brief explanation of each.

List 5 of the important accounting assumptions that have had an impact on the development of GAAP and Accounting.

Below is a list of the qualitative characteristics identified by GAAP. Following the list is a series of descriptive phrases. Required: Match each characteristic with the appropriate phrase.

Following the list below is a series of descriptions of inappropriate accounting procedures. Required: Indicate which item (or items) on the list was (were) violated in each description by placing the appropriate letter(s) in the space provided.

Below is a list of accounting assumptions, conventions, and principles. Following the list is a series of descriptive statements. Required: Match each item in the list with its descriptive statement by placing the appropriate letter(s) in the space provided.

What types of information would be helpful in accessing the amounts, timing, and uncertainty of future cash flows?

The FASB and IASB have joined forces to develop a joint Conceptual Framework. The joint task force's objective is to provide a sound foundation for both boards to develop accounting standards. This framework is essential to fulfilling the board's goal. What is the goal?

The tentative FASB and IASB Joint Conceptual Framework is presented below. Required: Provide the qualitative characteristic for each lettered box.

Define the following terms as they relate to decision usefulness, the ultimate objective of accounting information. a.Relevance b.Predictive value c.Confirmatory value d.Materiality

List the eight phases of the Joint FASB and IASB Conceptual Framework Project. 1___________________ 2___________________ 3___________________ 4___________________ 5___________________ 6___________________ 7___________________ 8___________________

Below are the sources of information used in external decision making. Required: Match each element with the appropriate statement by placing the appropriate letter in the space provided.

List the eight phases of the Joint FASB and IASB Conceptual Framework Project. 1_________ 2_ 3_ 4_ 5_ 6_ 7_ 8_________