Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
1.
|
The purpose of Statements of Financial
Accounting Concepts is to
a. | determine the need for FASB involvement in an emerging
issue. | b. | form a conceptual framework for solving existing and
emerging problems. | c. | establish
GAAP. | d. | modify or extend the existing FASB Standards
Statement. |
|
|
|
2.
|
FASB Technical Bulletins
a. | are to provide accounting guidance when it does not
conflict with any broad fundamental accounting principle. | b. | are issued monthly by the FASB to deal with current
topics. | c. | are similar to FASB Interpretations in that they
establish enforceable standards under the AICPA's Code of Professional
Ethics. | d. | were recently discontinued by the FASB because they
dealt with specialized topics having little impact on financial reporting in
general. |
|
|
|
3.
|
Which of the following statements is true when comparing the APB to the
CAP?
a. | APB had less authority and responsibility than the CAP | b. | APB had more
authority but less responsibility than the CAP | c. | APB had less authority and more responsibility
than the CAP | d. | APB had more authority and responsibility than the
CAP |
|
|
|
4.
|
Which of the following publications does not
qualify as a statement of generally accepted accounting principles?
a. | Statements of financial standards issued by the
FASB | b. | APB Opinions | c. | Accounting research studies issued by the AICPA | d. | Accounting interpretations issued by the
FASB |
|
|
|
5.
|
Members of the Financial Accounting Standards Board
are
a. | part-time employees. | b. | required to hold a CPA certificate. | c. | independent of any other organization. | d. | employed by the American Institute of Certified Public Accountants
(AICPA). |
|
|
|
6.
|
The purpose of the Emerging Issues Task Force does not include
which of the following?
a. | minimizing the need for the FASB to spend time and effort addressing narrow
implementation issues | b. | issuing pronouncements that establish new
generally accepted accounting principles. | c. | developing consensus
statements | d. | Acting as a "problem filter" for the FASB |
|
|
|
7.
|
The following published documents are part of the
"due process" system used by the FASB in the evolution of a typical FASB Statement of
Financial Accounting Standards:
1. Exposure Draft
2. Statement of Financial Accounting
Standards
3. Discussion Memorandum
What is the appropriate sequencing of these
documents?
a. | 3, 1, 2. | b. | 1, 3, 2. | c. | 1, 2,
3. | d. | 2, 3, 1. |
|
|
|
8.
|
The rule-making committees/boards developing accounting staandards evolved in
the following order:
a. | FASB, APB, CAP | b. | CAP, APB, FASB | c. | APB, CAP,
FASB | d. | FASB, CAP, APB |
|
|
|
9.
|
The Committee on Accounting Procedure turned out to be a failure
because:it
a. | followed a problem-by-problem approach in solving accounting
issues | b. | not develop a theoretical structure of accounting principles | c. | both(a) and
(b) | d. | neither (a) nor (b) |
|
|
|
10.
|
The Accounting Research Division was created to
a. | commission research | b. | issue accounting standards | c. | support the
FASB | d. | replace the CAP |
|