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Test Bank for Financial Reporting and Analysis 7th Edition By Lawrence Revsine Collins Johnson Fred Soffer (All Chapters, 100% Original Verified, A+ Grade)£19.24
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Test Bank for Financial Reporting and Analysis 7th Edition By Lawrence Revsine Collins Johnson Fred Soffer (All Chapters, 100% Original Verified, A+ Grade)
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Module
Financial Reporting and Analysis 7th
Institution
Financial Reporting And Analysis 7th
This Is Original 7th Edition of Test Bank From Original Author. All Other Files in the market are fake/old Edition. Other Sellers Have changed old Edition Number to new But Test Bank is old Edition.
Test Bank for Financial Reporting and Analysis 7th Edition By Lawrence Revsine Collins Johnson F...
Financial Reporting and Analysis, 7e Lawrence Revsine Daniel Collins
Bruce Johnson Fred Mittelstaedt Leonard Soffer (Test Bank All
Chapters, 100% Original Verified, A+ Grade)
Chap001 The Economic and Institutional Setting for Financial Reporting
True/False
[QUESTION]
1. The role of financial accounting information is to facilitate economic transactions and to
foster efficient allocation of resources among businesses and individuals.
Answer: True
Learning Objective: 01-01
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Resource Management
Blooms: Remember
Topic: Financial statements―As sources of information
[QUESTION]
2. Financial reports provide information that can reduce investors’ uncertainty about the
company’s opportunities and risks, thereby raising the company’s cost of capital.
Answer: False
Learning Objective: 01-02
Difficulty: 2 Medium
AACSB: Reflective Thinking
AICPA: BB Resource Management
AICPA: FN Risk Analysis
Blooms: Understand
Topic: Financial statements―For decision-maker needs
[QUESTION]
3. Comparability across companies allows analysts to identify real economic similarities in and
differences between underlying economic events because those similarities or differences are not
obscured by accounting methods or disclosure practices.
Answer: True
Learning Objective: 01-04
Difficulty: 2 Medium
AACSB: Reflective Thinking
AICPA: FN Risk Analysis
AICPA: FN Measurement
Blooms: Remember
Topic: Fundamental concepts of financial reporting
[QUESTION]
5. The public and private sector regulatory agencies establish and enforce financial reporting
requirements designed to ensure that companies meet certain minimum levels of financial
disclosure.
Answer: True
Learning Objective: 01-03
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Legal
Blooms: Remember
Topic: Financial statements―Disclosure costs and benefits
[QUESTION]
6. Although the SEC has the ultimate legal authority to set accounting principles in the U.S., it
has looked to private-sector organizations (e.g., the FASB) to establish and enforce these
principles.
Answer: False
Feedback: The SEC retains enforcement authority over financial reporting in the U.S.
Learning Objective: 01-04
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Legal
Blooms: Remember
Topic: Standard-setting―US GAAP
[QUESTION]
8. Accounting standard-setting in the U.S. is a technical process and thus little affected by
political considerations.
Answer: False
Learning Objective: 01-04
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Legal
Blooms: Remember
Topic: Standard-setting―US GAAP
[QUESTION]
9. The IASB and FASB have worked together to develop a single set of high-quality,
understandable, enforceable and globally accepted international financial reporting standards.
Answer: True
Learning Objective: 01-06
Difficulty: 1 Easy
AACSB: Diversity
AICPA: BB Global
AICPA: FN Measurement
Blooms: Remember
Topic: Standards differences—US GAAP and IFRS
[QUESTION]
10. Foreign companies registered with the SEC that use IFRS no longer have to reconcile their
financial statements to U.S. GAAP.
Answer: False
Feedback: Form F20 reconciles back to GAAP the earnings and shareholder’s equity
Learning Objective: 01-06
Difficulty: 2 Medium
AACSB: Diversity
AICPA: BB Legal
AICPA: FN Measurement
Blooms: Understand
Topic: Standards differences—US GAAP and IFRS
, Blooms: Understand
Topic: Global differences and financial reporting
[QUESTION]
12. The goal of the movement toward international convergence of accounting standards is a
single set of accounting standards accepted worldwide and superior to the choices presently
available.
Answer: True
Learning Objective: 01-06
Difficulty: 1 Easy
AACSB: Reflective Thinking
AACSB: Diversity
AICPA: BB Global
Blooms: Remember
Topic: Standards differences—US GAAP and IFRS
[QUESTION]
13. Regulators of industries granted monopoly privileges use financial statement data in setting
the rates companies are permitted to charge for the services these industries provide.
Answer: True
Learning Objective: 01-02
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Industry
Blooms: Remember
Topic: Financial statements―For decision-maker needs
[QUESTION]
14. Owners and managers have an economic incentive to supply the amount and type of
financial information that will enable the company to raise capital at the lowest cost.
Answer: True
Learning Objective: 01-03
Difficulty: 1 Easy
AACSB: Reflective Thinking
AICPA: BB Resource Management
Blooms: Remember
Topic: Financial statements―Disclosure costs and benefits
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