TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete
,Table of Contents
t t
1tThetEnvironmenttandtConceptualtFrameworktoftFinancialtReporting
2tThetAccountingtInformationtSystem
3tIncometStatement,tRelatedtInformation,tandtRevenuetRecognition
4tBalancetSheettandtStatementtoftCashtFlows
5tAccountingtandtthetTimetValuetoftMoney
6tCashtandtReceivables
7tValuationtoftInventories:tAtCost-BasistApproach
8tInventories:tAdditionaltValuationtIssues
9tAcquisitiontandtDispositiontoftProperty,tPlant,tandtEquipment
10tDepreciation,tImpairments,tandtDepletion
11tIntangibletAssets
12tCurrenttLiabilitiestandtContingencies
13tLong-TermtLiabilities
14tStockholders‘tEquity
15tDilutivetSecuritiestandtEarningstpertShare
16tInvestments
17tRevenuetRecognition
18tAccountingtfortIncometTaxes
19tAccountingtfortPensionstandtPostretirementtBenefits
20tAccountingtfortLeases
21tAccountingtChangestandtErrortAnalysis
22tStatementtoftCashtFlows
23tFulltDisclosuretintFinancialtReportingt
, CHAPTER 1 t
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK
t t t t t
OF FINANCIAL REPORTING t t
IFRStquestionstaretavailabletattthetendtoftthistchapter.
TRUE-FALSE—Conceptual
1. Financialtstatementstaretthetprincipaltmeanstthroughtwhichtatcompanytcommunicatestitstfinanc
ialtinformationttotthosetoutsidetit.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
2. Userst oft financialt reportst oft at companyt uset thet informationt providedt byt theset reportst totmak
etcapitaltallocationtdecisions.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
3. Anteffectivetprocesstoftcapitaltallocationtprovidestantefficienttmarkettfortbuyingtandtsellingtsecur
itiestandtobtainingtandtgrantingtcredit.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
4. Investorstaretinterestedtintfinancialtreportingtbecausetittprovidestinformationtthattistusefultfortma
kingtdecisions.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
5. Userst oft financialt accountingt statementst havet botht coincidingt andt conflictingt needst fortinfo
rmationtoftvariousttypes.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
6. AlthoughtthetFASBthastdevelopedtatconceptualtframework,tnotStatementstoftFinancialtAccount
ingtConceptsthavetbeentissuedttotdate.
Ans:tF,tLO:t1,tBloom:tK,tDifficulty:tModerate,tMin:t1,tAACSB:tKnowledge,tAICPAtBC:tNone,tAICPAtAC:tReporting,tAICPAtPC:tNone,tIMA:tReportingt&t Cont
rol:tFinancialtStatementtAnalysis,tIFRS:tNone
7. ThetpassagetoftatnewtFASBtAccountingtStandardstUpdatetrequirestthetsupporttoftfivetoft thetse
ventboardtmembers.
Ans:t F,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtPreparation,tIFRS:tNone
8. StatementstoftFinancialtAccountingtConceptstsettforthtfundamentaltobjectivestandt conceptstth
attaretusedtbytthetFASBtintdevelopingtfuturetstandardstoftfinancialtaccountingtandtreporting.
Ans:t T,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtAnalysis,tIFRS:tNone
9. ThetFASB‘stCodificationtcreatestatnewtsettoftGAAP.
Ans:t F,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Co
ntrol:tFinancialtStatementtAnalysis,tIFRS:tNone
, 1t-t2 TesttBanktfortIntermediatetAccounting,tEighteenthtEdition
10. Thetobjectivetoftfinancialtreportingtisttotreporttthetplanstmadetbytatcompanyttotimprovetthetprodu
ctivitytoftitstemployees.
Ans:t F,t LO:t 1,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtPreparation,tIFRS:tNone
11. At soundlyt developedt conceptualt frameworkt enablest thet FASBt tot issuet moret usefult andtcon
sistenttpronouncementstoverttime.
Ans:t T,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
12. Atconceptualtframeworktistatcoherenttsystemtoftconceptstthattflowtfromtantobjective.
Ans:t T,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
13. Thet firstt levelt oft thet conceptualt frameworkt identifiest thet recognition,t measurement,t andtdis
closuretconceptstusedtintestablishingtaccountingtstandards.
Ans:t F,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
14. Thetobjectivetoftfinancialtreportingtservestastthetfoundationtoftthetconceptualtframework.
Ans:t T,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
15. Userstoftfinancialtstatementstaretassumedttotneedtnotknowledgetoftbusinesstandtfinancialtacco
untingtmattersttotunderstandtthetinformationtcontainedtintfinancialtstatements.
Ans:t F,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
16. Relevancet andt faithfult representationt aret thet twot fundamentalt qualitiest thatt maketacco
untingtinformationtusefultfortdecision-making.
Ans:t T,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
17. Thetideatoftconsistencytdoestnottmeantthattcompaniestcannottswitchtfromtonetaccountingtmeth
odttotanother.
Ans:tT,tLO:t2,tBloom:tC,tDifficulty:tModerate,tMin:t1,tAACSB:tKnowledge,tAICPAtBC:tNone,tAICPAtAC:tReporting,tAICPAtPC:tNone,tIMA:tReportingt&t Control
:tFinancialtStatementtAnalysis,tIFRS:tNone
18. Timelinesstandtneutralitytarettwotingredientstoftrelevance.
Ans:t F,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
19. Verifiabilitytandtpredictivetvaluetarettwotingredientstoftfaithfultrepresentation.
Ans:t F,t LO:t 2,t Bloom:t K,t Difficulty:t Easy,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Reporting,t AICPAt PC:t None,t IMA:t Reportingt &t Contr
ol:tFinancialtStatementtAnalysis,tIFRS:tNone
20. Revenues,tgains,tandtdistributionsttotownerstalltincreasetequity.
Ans:t F,t LO:t 2,t Bloom:t C,t Difficulty:t Moderate,t Min:t 1,t AACSB:t Knowledge,t AICPAt BC:t None,t AICPAt AC:t Measurementt Analysist andt Interpretation,t AICP
AtPC:tNone,tIMA:tReportingt&tControl:tFinancialtStatementtAnalysis,tIFRS:tNone
21. Comprehensivet incomet includest allt changest int equityt duringt at periodt exceptt thosetres
ultingtfromtinvestmentstbytownerstandtdistributionsttotowners.
Ans:tT,tLO:t2,tBloom:tK,tDifficulty:tEasy,tMin:t1,tAACSB:tKnowledge,tAICPAtBC:tNone,tAICPAtAC:tMeasurementtAnalysistandtInterpretation,tAICPAt PC:t
None,tIMA:tReportingt&tControl:tFinancialtStatementtAnalysis,tIFRS:tNone
