acc 421 final exam 23 questions answered 494858

ACC 421—- FINAL EXAM….23 QUESTIONS ANSWERED The Financial Accounting Standards Board employs a “due process” system which (Points: 5) has all CPAs in the United States vote on a new Statement. enables interested parties to express their views on issues under consideration. identifies the accounting issues that are the most important. requires that all accountants receive a copy of financial standards. 2. (TCO A) The IASB: (Points: 5) governs accounting standards in the U.S. is working on a convergence project with the FASB. sets the accounting standards for only European countries. plays only a minor part in accounting rule making throughout the world. 3. (TCO A) International GAAP, or i-GAAP: (Points: 5) has different standards than under U.S. GAAP. has some commonality with U.S. GAAP in many areas. is accepted by many countries throughout the world all of the above are true. 4. (TCO A) Information is neutral if it: (Points: 5) provides benefits which are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result. 5. (TCO A) Which of the following elements of financial statements is not a component of comprehensive income? (Points: 5) Revenues Distributions to owners Losses Expenses 6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements? (Points: 5) Revenues Losses Liabilities Equity 7. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? (Points: 5) Assets Liabilities Gains Expenses 8. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results? (Points: 5) Economic entity assumption Going concern assumption Periodicity assumption Monetary unit assumption 9. (TCO A) What is the quality of information that enables users to better…