Intermediate Accounting 1 Midterm 1 Exam with correct complete solutions
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Course
Intermediate Accounting
Institution
Intermediate Accounting
Intermediate Accounting 1 Midterm 1 ExamWhich of the following is not a user of financial reports?
A. Government Agencies
B. Customers
C. Unions
D. Creditors - correct answer B
The information provided by financial reporting pertains to
A. individual business enterprises, industries, ...
Which of the following is not a user of financial reports?
A. Government Agencies
B. Customers
C. Unions
D. Creditors - correct answer B
The information provided by financial reporting pertains to
A. individual business enterprises, industries, and an economy as a whole, rather than to members of
society as consumers.
B. an economy as a whole and to members of society as consumers, rather than to individual enterprises
or industries.
C. individual business enterprises, rather than to industries or an economy as a whole or to members of
society as consumers.
D. business industries, rather than to individual enterprises or an economy as a whole or to members of
society as consumers. - correct answer C
All of the following are ways in which accounting information is used by financial accounting except to
A. buy, sell, hold equity and debit instruments.
B. decide whether to invest in the company.
C. evaluate borrowing capacity to determine the extent of a loan to grant.
D. plan and control company's operations. - correct answer D
What is the objective of financial reporting?
,A. provide information about the reporting entity that is useful to present and potential equity investors,
tenders, and other creditors.
B. provide information that excludes claims to the resources.
C. provide information that clearly portrays non financial transactions.
D. provide information that is useful to management in making decisions. - correct answer A
Primary users for general-purpose financial statements include each of the following except
A. employees
B. suppliers
C. investors
D. creditors - correct answer A
A common set of accounting standards and procedures is called
A. statements of financial accounting concepts
B. generally accepted accounting principles
C. financial accounting standards
D. objectives of financial reporting - correct answer B
Which of the following would result if there was not set of generally accepted and universally practiced
accounting standards?
A. It would be almost impossible to prepare statements that could be compared.
B. Each company would have to develop its own standards.
C. Readers of financial statements would have to familiarize themselves with every company's peculiar
topic could be found.
D. All of these answer sheets are correct - correct answer D
, All of the following are true regarding the FASB Codification except
A. the codification changes the way GAAP is documented, presented and updated.
B. the goal of the codification was to provide one place where all authoritative literature about a
particular topic could be found.
C. the purpose of the Codification is to create new GAAP.
D. the Codification was created to simplify user access. - correct answer C
The mission of the International Accounting Standards Board is to
A. issue enforceable standards which regulate the financial accounting and reporting of multinational
corporations.
B. develop a single set of high-quality and understandable IFRS for general-purpose financial statements.
C. develop a uniform currency in which the financial transactions of companies throughout the world
would be measured.
D. arbitrate accounting disputes between auditors and international companies. - correct answer B
Accounting principles are "generally accepted" only when
I. an authoritative accounting rule making body has established it in a official pronouncement
II. a given practice has been accepted as appropriate because of its universal application
A. I only
B. II only
C. I or II
D. Neither I nor II - correct answer C
Which of the following was established by the federal government to help develop and standardize
financial information presented to stockholders?
A. SEC (Securities and Exchange Commission)
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