Test Bank Intermediate Accounting IFRS Edition 4th Edition by Donald Kieso, Jerry Weygandt, Terry Warfield. Isbn. 9781119607519. 9781119609247.
Intermediate Accounting IFRS, 4th Edition Test Bank. Kieso 4e test bank for Intermediate Accounting.
TABLE OF CONTENTS:=1 Financial Reporting and Account...
TEST BANK Intermediate Accounting IFRS Edition 4th Edition
Chapter 01: Financial Reporting and Accounting Standards
TRUE-FALSE —Conceptual
1. Financial statements are the principal means through which financial information is
communicated to those outside an enterprise.
Ans: T
LO: 1.1
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
2. Capital markets are increasingly integrated and companies have greater flexibility in
deciding where to raise capital.
Ans: T
LO: 1.1
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
3. The major financial statements used under International Financial Reporting Standards
(IFRS) include the statement of changes in financial position and the statement of
stockholders’ equity.
Ans: F
LO: 1.1
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
4. General-purpose financial statements are not considered cost-effective because, while they
provide useful information, the cost to provide the information is quite high.
Ans: F
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
,AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
5. Investors and creditors are considered the primary user group of general-purpose financial
reporting.
Ans: T
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
6. An effective process of capital allocation promotes productivity and provides an efficient
market for buying and selling securities and obtaining and granting credit.
Ans: T
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
7. The emphasis on “assessing cash flow prospects” means that the cash basis is preferred
over the accrual basis of accounting.
Ans: F
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
8. While objectives for financial reporting exist on an informal basis, no formal objectives have
been adopted.
Ans: F
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
,AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
9. One weakness of accrual accounting is that it does not provide a good indication of the
enterprise's present and continuing ability to generate favorable cash flows.
Ans: F
LO: 1.2
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
10. The passage of a new International Financial Reporting Standard requires the support of
ten of the thirteen board members.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
11. International Financial Reporting Standards preceded International Accounting Standards.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
12. The standard-setting structure includes a Monitoring Board whose purpose is to provide
advice and counsel to the IASB on major policies and technical issues.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
, AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
13. The overriding requirement of IFRS is that financial statements provide an error-free and
comprehensive presentation of a company’s financial position.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
14. The IFRS Foundation appoints members, reviews effectiveness, and helps in the
fundraising efforts of the IASB, IFRS Advisory Council, and IFRS Interpretations
Committee.
Ans: T
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
15. International Accounting Standards are no longer considered applicable because they have
been replaced by International Financial Reporting Standards.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
16. The IASB has a regulatory mandate that is enforced by the European Union member
countries.
Ans: F
LO: 1.3
Bloom: K
Difficulty: Easy
Min: 1
AACSB: Analytic
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