Question 1 (5 points)
Question 1 Und
Which of the following was not a criticism of the
development of accounting standards by the Accounting Principles Board?
Question 1 options:
Harmonization. The accounting standards developed were
dissimilar to those developed by the International Accounting Standards
Committee.
Response time. The emerging accounting problems were not
being investigated and solved quickly enough by the part-time members.
The independence of the members of the APB. The individuals
serving on the board had full-time responsibilities elsewhere that might
influence their views of certain issues.
The structure of the board. The largest eight public
accounting firms (at that time) were automatically awarded one member, and
there were usually five or six other public accountants on the APB.
Question 2 (5 points)
Question 2 Und
Which of the following is the professional organization of
university accounting professors?
Question 2 options:
Financial Executives Institute
American Accounting Association
American Institute of Certified Public Accountants
American Institute of Accountants
Question 3 (5 points)
Question 3 Und
The net realizable value of receivables is calculated as the
face value of the receivables less adjustments for:
Question 3 options:
credit sales.
actual uncollected amounts adjusted for purchase discounts.
estimated uncollectible accounts.
bad debts already written off.
Question 4 (5 points)
Question 4 Und
Who was the author of Accounting Research Study No. 1, The
Basic Postulates of Accounting?
Question 4 options:
Maurice Moonitz
Thomas Hatfield
Robert Sprouse
Alvin Jennings
Question 5 (5 points)
Question 5 Und
What is the objective of financial reporting?
Question 5 options:
Provide information that excludes claims to the resources
Provide information that is useful to management in making
decisions
Provide information that clearly portrays nonfinancial
transactions
Provide information about the reporting entity that is
useful to present and potential equity investors, lenders, and other creditors
Question 6 (5 points)
Question 6 Und
What is the name given to the agreement between the FASB and
IASC to harmonize accounting standards?
Question 6 options:
The Paris Accords
The Norwalk Agreement
The Washington DC agreement
The London agreement
Question 7 (5 points)
Question 7 Und
Which of the following is not a qualitative characteristic
contained in the IASB’s Framework for the Preparation of Financial Statements?
Question 7 options:
Understandability
Reliability
Relevance
Timeliness
Question 8 (5 points)
Question 8 Und
Which of the following research approaches is attributed to
DR Scott?
Question 8 options:
Inductive
Deductive
Ethical
Pragmatic
Question 9 (5 points)
Question 9 Und
Which of the following outcomes of providing accounting
information is an attempt to identify individual securities that are mispriced
by reviewing all available financial information?
Question 9 options:
Capital asset pricing model
Agency theory
Efficient markets
Fundamental analysis
Question 10 (5 points)
Question 10 Und
A trading security is measured at fair value on the balance
sheet date and reported as:
Question 10 options:
a current asset, and changes in fair value are reported in accumulated
other comprehensive income as unrealized gains and losses.
either a current or noncurrent asset depending on whether it
meets the definition of a current asset.
a current asset, and changes in fair value are reported in
earnings as unrealized gains and losses.
a current asset, and changes in fair value are reported in
earnings as realized gains and losses.
Question 11 (50 points)
Question 11 Und
What is goodwill?
How is the recorded value of goodwill determined?
How is goodwill written off under the provisions of SFAS No.
142 now FASB ASC 350?
Question 11 options:
