Exam (elaborations)
TEST BANK FOR FINANCIAL REPORTING AND ANALYSIS 8TH EDITION REVSINE
TEST BANK FOR FINANCIAL REPORTING AND ANALYSIS 8TH EDITION REVSINE
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th EditioRevsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Answers are located in the second half of this document.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The role of financial accounting information is to facilitate economic transactions and to
foster efficient allocation of resources among businesses and individuals.
⊚ true
⊚ false
Question Details
Learning Objective : 01-01 Understand why financial statements are valuable sources of information ab
Difficulty : 1 Easy
AACSB : Reflective Thinking
AICPA : BB Resource Management
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Topic : Financial statements—As sources of information
Gradable : automatic
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.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
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.
Version 1 1
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Learning Objective : 01-04 Understand how accounting rules are established, and why management can sh
AICPA : FN Measurement
Topic : Fundamental Concepts of Financial Reporting
Gradable : automatic
4) Executive compensation contracts seldom contain annual bonus and longer term pay
components tied to financial statement results, but instead usually rely on stock options as a
means to reward managers in a manner that is less subject to manipulation by management.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
AICPA : BB Critical Thinking
Topic : Financial statements―For decision-maker needs
Gradable : automatic
5) Congress stipulated that the SEC develop rules for companies to disclose information on
use of “conflict minerals.”
⊚ true
⊚ false
Version 1 2
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
AACSB : Reflective Thinking
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information demands of cu
Difficulty : 2 Medium
AICPA : FN Risk Analysis
Bloom's : Understand
Topic : Financial statements―For decision-maker needs
Gradable : automatic
6) 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.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-03 Understand how the supply of financial information is influenced by the co
AICPA : BB Legal
Topic : Financial statements—Disclosure costs and benefits
Gradable : automatic
7) 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.
⊚ true
⊚ false
Version 1 3
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
8) Management has considerable discretion over the particular accounting procedures used
in the financial statements and over the details contained in related note disclosures.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why management can sh
AICPA : FN Measurement
Topic : Financial reporting strategies
Gradable : automatic
9) Accounting standard-setting in the U.S. is a technical process and thus little affected by
political considerations.
⊚ true
⊚ false
Version 1 4
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why management can sh
AICPA : BB Legal
Gradable : automatic
Topic : Standard-setting—U.S. GAAP
10) Government regulation provides the primary motivation for firms to disclose
sustainability-related information.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-05 Understand why companies disclose sustainability information.
Topic : Sustainability Reporting under the GRI
AICPA : FN Reporting
Gradable : automatic
11) While an increasing percentage of companies report on sustainability, consistency in
reporting continues to provide challenges for information users.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
AICPA : BB Global
Learning Objective : 01-05 Understand why companies disclose sustainability information.
AACSB : Analytical Thinking
Bloom's : Analyze
Topic : Sustainability Reporting under the GRI
Gradable : automatic
Version 1 5
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
12) The IASB and FASB have worked together to develop a single set of high-quality,
understandable, enforceable and globally accepted international financial reporting standards.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AICPA : FN Measurement
AACSB : Diversity
AICPA : BB Global
Learning Objective : 01-07 Understand how International Financial Reporting Standards (IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
13) Foreign companies registered with the SEC that use IFRS no longer have to reconcile
their financial statements to U.S. GAAP.
⊚ true
⊚ false
Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Measurement
AICPA : BB Legal
AACSB : Diversity
Learning Objective : 01-07 Understand how International Financial Reporting Standards (IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
14) U.S. GAAP has been criticized as being too "rules-based" thus allowing managers to
invent "loopholes" that conform to the letter of a standard but simultaneously violate its spirit.
⊚ true
⊚ false
Version 1 6
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Measurement
Learning Objective : 01-06 Understand why financial reporting philosophies and detailed accounting pr
Topic : Global differences and financial reporting
Gradable : automatic
15) 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.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AACSB : Diversity
AICPA : BB Global
Learning Objective : 01-07 Understand how International Financial Reporting Standards (IFRS) differ f
Topic : The effect of IFRS on U.S. GAAP
Gradable : automatic
16) 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.
⊚ true
⊚ false
Version 1 7
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information demands of cu
AICPA : BB Industry
Topic : Financial statements―For decision-maker needs
Gradable : automatic
17) 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.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
AICPA : BB Resource Management
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-03 Understand how the supply of financial information is influenced by the co
Topic : Financial statements—Disclosure costs and benefits
Gradable : automatic
18) Financial statement information can help customers monitor a supplier’s manufacturing
processes and thus evaluate the quality of its products.
⊚ true
⊚ false
Version 1 8
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-02 Understand how financial reporting addresses the information demands of cu
AICPA : BB Industry
Topic : Financial statements―For decision-maker needs
Gradable : automatic
19) The conceptual framework for financial reporting includes the standards of GAAP.
⊚ true
⊚ false
Question Details
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-04 Understand how accounting rules are established, and why management can sh
Topic : Fundamental Concepts of Financial Reporting
AICPA : BB Industry
Gradable : automatic
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
20) A company’s financial statements reflect information about:
A) future projections of sales, expenses, and other future economic events.
B) product information and competitive positions.
C) the general economy of the industry in which the company operates.
D) economic events that affect a company that can be translated into accounting numbers.
Version 1 9
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Reporting and Analysis 8th Editio
Revsine
Financial Reporting and Analysis 8th Edition by Revsine
Ch02
Question Details
Learning Objective : 01-01 Understand why financial statements are valuable sources of information ab
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AICPA : BB Critical Thinking
Topic : Financial statements—As sources of information
Gradable : automatic
21) All financial statements:
A) provide a picture of the company at a moment in time.
B) describe changes that took place over a period of time.
C) help to evaluate what happened in the past.
D) contain the most up to date information about the company.
Question Details
Learning Objective : 01-01 Understand why financial statements are valuable sources of information ab
Difficulty : 1 Easy
AACSB : Reflective Thinking
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
AICPA : BB Critical Thinking
Topic : Financial statements—As sources of information
Gradable : automatic
22) A firm’s financial statements contain trends that give users insight into the firm’s:
A) future market share.
B) position within its industry.
C) profitability, productivity, and liquidity.
D) current market price for common and preferred stock.
Version 1 10
mynursytest.store
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller primecontent001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now