CPA Exam (Becker F1) QUESTIONS AND CORRECT ANSWERS RATED 100%
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Course
CPA - Certified Public Accountant
Institution
CPA - Certified Public Accountant
CPA Exam (Becker F1) QUESTIONS AND CORRECT ANSWERS RATED 100%
Who has the legal authority to establish U.S. GAAP? - correct answer The SEC
The SEC was established by the _________________. - correct answer Securities Exchange Act of 1934
How many board members does the FASB have? How long c...
CPA Exam (Becker F1) QUESTIONS AND CORRECT ANSWERS RATED 100%
Who has the legal authority to establish U.S. GAAP? - correct answer The SEC
The SEC was established by the _________________. - correct answer Securities Exchange
Act of 1934
How many board members does the FASB have? How long can they serve on the board? -
correct answer The FASB has seven full-time members who serve for five-year terms and
may be reappointed to one additional five-year term.
What is the Committee on Accounting Procedures (CAP)? - correct answerThe CAP was a
part-time committee of the AICPA that promulgated Accounting Research Bulletins (ARBs),
which determined GAAP from 1939 - 1959.
What is the Accounting Principles Board? - correct answerThe APB was a part-time
committee of the AICPA that issued opinions (APBOs) and interpretations (APBIs), which
determine GAAP from 1959 - 1973.
What is the FASB? - correct answerThe FASB is an independent full-time organization that
was established in 1973 and has determine GAAP since then.
T or F: If it's not in the FASB Accounting Standards Codification, it's not GAAP. - correct
answerT
The codification is comprised of the following literature (hint: FEDPRIA): - correct answer1.
Financial Accounting Standards Board (FASB)
2. Emerging Issues Task Force (EITF) Abstracts and Topic D
3. Derivative Implementation Group Issues
4. Accounting Principles Board Opinions
5. Accounting Research Bulletins
6. Accounting Interpretations
7. American Institute of Certified Public Accountants (AICPA)
,What SEC Standards are included in the Codification (hint: Regulation For Accounting I-S
Emerging)? - correct answer1. Regulation S-X
2. Financial Reporting Releases (FRR)
3. Accounting Series Releases (ASR)
4. Interpretive Releases (IR)
5. Staff Accounting Bulletins (SAB)
6. EITF Topic D and SEC Staff Observer Comments
What is the goal of the Private Company Council? - correct answerTo establish alternatives to
U.S. GAAP, where appropriate, and to make private company financial statements more
relevant, less complex, and cost-beneficial.
Who created the Private Company Council? - correct answerThe Financial Accounting
Foundation (FAF)
T or F: The FASB updates the Accounting Standards Codification for new U.S. GAAP issued
by the FASB and for amendments to the SEC content with Accounting Standards Updates.
These Accounting Standards Updates are authoritative literature. - correct answerF:
Accounting Standards Updates are NOT authoritative literature. They provide background
information, update the code, and describe the basis for conclusions on changes in the code.
The International Accounting Standards Board (IASB) was established in ___________ as
part of the ______________. - correct answer2001, International Financial Reporting
Standards (IFRS) Foundation
What is the purpose of the IASB? - correct answerTo develop a single set of high-quality,
GLOBAL accounting standards.
In addition to the IASB, the IFRS Foundation sponsors the ______________. - correct
answerInternational Financial Reporting Interpretations Committee (IFRIC).
What does the IFRIC do? - correct answerThe IFRIC provides guidance on newly identified
financial reporting issues not addressed in the IFRSs and assists the IASB in achieving
international convergence of accounting standards.
, What does the term International Financial Reporting Standards encompass? - correct
answerInternational Financial Reporting Standards, International Accounting Standards, and
Interpretations developed by the IFRIC and the former SIC.
The IASB is developing the Conceptual Framework for Financial Reporting, which does
what? - correct answerThe Conceptual Framework for Financial Reporting describes the
basic concepts that underlie the preparation and presentation of financial statements for
EXTERNAL USERS.
What was the goal of the international convergence of accounting standards between the
IASB and the FASB? - correct answerThe goal was a single set of high-quality, international
accounting standards that companies could use for both domestic and cross-border financial
reporting.
An IFRS must be approved by at least __________ members of the ___________. - correct
answer9, IASB
T or F: Both the IFRS Conceptual Framework and U.S. GAAP Conceptual Framework can
and should be applied to specific accounting issues. - correct answerF: Under IFRS, entities
should consider applicability of the Framework. Under U.S. GAAP, the Framework
CANNOT be applied to specific accounting issues.
The Conceptual Frameworks Underlying Financial Accounting are also known as
____________. - correct answerbasic reasoning
Who created the conceptual framework underlying financial accounting in the U.S.? - correct
answerThe FASB
What is the purpose of the conceptual framework created by the FASB? - correct answerIt
serves as a BASIS FOR ALL FASB PRONOUNCEMENTS.
The conceptual framework created by the FASB is set forth in pronouncements called
_______________. - correct answerStatements of Financial Accounting Concepts (SFAC)
Are SFAC GAAP? - correct answerNo, but they provide a basis for GAAP.
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