100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank for Financial Reporting and Analysis, 13th Edition Charles H. Gibson Chapter 1-13 $10.98   Add to cart
Quickly navigate to
Preview
  2.  
  3. Answer
  4.  
  5. Answer

Exam (elaborations)

Test Bank for Financial Reporting and Analysis, 13th Edition Charles H. Gibson Chapter 1-13

1 review
 182 views  5 purchases
  • Course
  • Answer
  • Institution
  • Answer
  • Book
  • Financial Reporting and Analysis

Test Bank for Financial Reporting and Analysis, 13th Edition Charles H. Gibson Chapter 1-13

Preview 4 out of 283  pages

Document information

  • July 6, 2022
  • 283
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers

Subjects

  • test bank for financial reporting and analysis
  • 13th edition charles h gibson chapter 1 13

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Solution manual financial statement analysis 13th edition charles h gibson
  • Official© Solutions Manual to Accompany Financial Reporting and Analysis,Gibson,13e
  • Solution Manual for Financial Statement Analysis, 13th Edition By Charles H. Gibson
All for this textbook (15)

Written for

  • Answer
All documents for this subject (71)

1  review

review-writer-avatar

By: Student571 • 9 months ago

Seller

avatar-seller
solutions

Reviews received

Content preview

TEST BANK FOR
Financial Reporting and Analysis, 13th Edition Charles H. Gibson
Chapter 1-13
CHAPTER 1—INTRODUCTION TO FINANCIAL REPORTING


MULTIPLE CHOICE

1. Charging off equipment that cost less than $20 would be an example of the application of:
a. going concern.
b. cost.
c. matching.
d. materiality.
e. realization.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

2. The going concern assumption:
a. is applicable to all financial statements.
b. primarily involves periodic income measurement.
c. allows for the statements to be prepared under generally accepted accounting principles.
d. requires that accounting procedures be the same from period to period.
e. none of the answers are correct.
ANS: C PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

3. Understating assets and revenues is justified based on:
a. realization assumption.
b. matching.
c. consistency.
d. realization.
e. None of the answers are correct.
ANS: E PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

4. The assumption that enables us to prepare periodic statements between the time that a business
commences operations and the time it goes out of business is:

, a. time period.
b. business entity.
c. historical cost.
d. transaction.
e. None of the answers are correct.
ANS: A PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

5. Valuing assets at their liquidation values is not consistent with:
a. conservatism.
b. materiality.
c. going concern.
d. time period.
e. None of the answers are correct.
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

6. The business being separate and distinct from the owners is an integral part of the:
a. time period assumption.
b. going concern assumption.
c. business entity assumption.
d. realization assumption.
e. None of the answers are correct.
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

7. The principle that assumes the reader of the financial statements is not interested in the liquidation values
is:
a. conservatism.
b. matching.
c. time period.
d. realization.
e. None of the answers are correct.
ANS: E PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

, 8. An accounting period that ends when operations are at a low ebb is:
a. a calendar year.
b. a fiscal year.
c. the natural business year.
d. an operating year.
e. None of the answers are correct.
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

9. The accounting principle that assumes that inflation will not take place or will be immaterial is:
a. monetary unit.
b. historical cost.
c. realization.
d. going concern.
e. None of the answers are correct.
ANS: A PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

10. Valuing inventory at the lower of cost or market is an application of the:
a. time period assumption.
b. realization principle.
c. going concern principle.
d. conservatism principle.
e. None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

11. The realization principle leads accountants to usually recognize revenue at:
a. the end of production.
b. during production.
c. the receipt of cash.
d. the point of sale.
e. None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

, 12. The comment that "items that are not material may be recorded in the financial statements in the most
economical and expedient manner possible" is representative of:
a. matching.
b. conservatism.
c. realization.
d. materiality.
e. None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Comprehension
NOT: Time: 1 min.

13. The assumption that deals with when to recognize the costs that are associated with the revenue that is
being recognized is:
a. matching.
b. going concern.
c. consistency.
d. materiality.
e. None of the answers are correct.
ANS: A PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.

14. The most significant current source of generally accepted accounting principles is the:
a. New York Stock Exchange.
b. Accounting Principles Board.
c. Accounting Research Studies.
d. AICPA committee on Accounting Procedure.
e. Financial Accounting Standards Board.
ANS: E PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY: Bloom's: Knowledge NOT: Time: 1 min.

15. All but one of the following statements indicates a difference between the Financial Accounting
Standards Board (FASB) and prior approaches. Select the one that is not a difference.
a. The FASB is independent of the AICPA.
b. The size of the board is much smaller.
c. The FASB has broader representation.
d. The FASB is the primary board for the development of generally accepted accounting
principles.
e. Members of the FASB serve on a full-time basis.
ANS: D PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller solutions. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.98. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

66579 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.98  5x  sold
  • (1)
  Add to cart