Exam (elaborations)

TEST BANK Intermediate Accounting, 18th Edition by Kieso, Warfield Chapter 1 - 23 Complete

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Course
NURSING456 (BIO56)

Institution
West Virgina University

1. Financial statements are the principal means through which a company communicates its financial information to those outside it. Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial Sta...

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Uploaded on September 26, 2024
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Type Exam (elaborations)
Contains Questions & answers

1 financial statements are the principal means th
2 users of financial reports of a company use the
3 an effective process of capital allocation prov
4 investors are interested in financial reporting

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TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete

,Table of Contents
1 The Environment and Conceptual Framework of Financial Reporting

2 The Accounting Information System

3 Income Statement, Related Information, and Revenue Recognition

4 Balance Sheet and Statement of Cash Flows

5 Accounting and the Time Value of Money

6 Cash and Receivables

7 Valuation of Inventories: A Cost-Basis Approach

8 Inventories: Additional Valuation Issues

9 Acquisition and Disposition of Property, Plant, and Equipment

10 Depreciation, Impairments, and Depletion

11 Intangible Assets

12 Current Liabilities and Contingencies

13 Long-Term Liabilities

14 Stockholders’ Equity

15 Dilutive Securities and Earnings per Share

16 Investments

17 Revenue Recognition

18 Accounting for Income Taxes

19 Accounting for Pensions and Postretirement Benefits

20 Accounting for Leases

21 Accounting Changes and Error Analysis

22 Statement of Cash Flows

23 Full Disclosure in Financial Reporting

, CHAPTER 1
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK OF
FINANCIAL REPORTING
IFRS questions are available at the end of this chapter.

TRUE-FALSE—Conceptual
1. Financial statements are the principal means through which a company communicates its financial
information to those outside it.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

2. Users of financial reports of a company use the information provided by these reports to make
capital allocation decisions.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

3. An effective process of capital allocation provides an efficient market for buying and selling securities
and obtaining and granting credit.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

4. Investors are interested in financial reporting because it provides information that is useful for making
decisions.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

5. Users of financial accounting statements have both coinciding and conflicting needs for
information of various types.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

6. Although the FASB has developed a conceptual framework, no Statements of Financial Accounting
Concepts have been issued to date.
Ans: F, LO: 1, Bloom: K, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

7. The passage of a new FASB Accounting Standards Update requires the support of five of the seven
board members.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

8. Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are
used by the FASB in developing future standards of financial accounting and reporting.
Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

9. The FASB’s Codification creates a new set of GAAP.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

, 1-2 Test Bank for Intermediate Accounting, Eighteenth Edition

10. The objective of financial reporting is to report the plans made by a company to improve the
productivity of its employees.
Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Preparation, IFRS: None

11. A soundly developed conceptual framework enables the FASB to issue more useful and consistent
pronouncements over time.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

12. A conceptual framework is a coherent system of concepts that flow from an objective.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

13. The first level of the conceptual framework identifies the recognition, measurement, and
disclosure concepts used in establishing accounting standards.
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

14. The objective of financial reporting serves as the foundation of the conceptual framework.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

15. Users of financial statements are assumed to need no knowledge of business and financial accounting
matters to understand the information contained in financial statements.
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

16. Relevance and faithful representation are the two fundamental qualities that make
accounting information useful for decision-making.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

17. The idea of consistency does not mean that companies cannot switch from one accounting method to
another.
Ans: T, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

18. Timeliness and neutrality are two ingredients of relevance.
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

19. Verifiability and predictive value are two ingredients of faithful representation.
Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Reporting, AICPA PC: None, IMA: Reporting & Control: Financial
Statement Analysis, IFRS: None

20. Revenues, gains, and distributions to owners all increase equity.
Ans: F, LO: 2, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA:
Reporting & Control: Financial Statement Analysis, IFRS: None

21. Comprehensive income includes all changes in equity during a period except those resulting
from investments by owners and distributions to owners.
Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA:
Reporting & Control: Financial Statement Analysis, IFRS: None

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