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402_05_gaap_08

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 
Who is primarily responsible for selecting accounting principles for financial statements that are presented in conformity with GAAP?
  
a.
AICPA
b.
SEC
c.
Independent auditors.
d.
The entity’s management.
 

 2. 
If an accountant decides that an accounting principle not contained in an FASB Financial Accounting Standards Statement does not  have substantial authoritative support ,then he or she should:

      give an unqualified                 disclose the
             opinion                        fact of departure
a.
       Yes                                Yes
b.
        No                                 Yes
c.
        Yes                                No
d.
        No                                  No
 

 3. 
Substantial authoritative support can exist for:
                                                                     Accounting
        APB Opinions    FASB Standards     Research Bulletins
a.
       No                      Yes                         Yes
b.
       Yes                     Yes                         Yes
c.
        Yes                    Yes                         No
d.
        No                     Yes                          No
 

 4. 
A subcommittee of the APB concluded that the term “substantial authoritative support”
a.
was a useful concept in defining generally accepted accounting principles
b.
could not be defined in a meaningful manner
c.
should be used as a substitute for “generally accepted accounting principles.”
d.
referred to principle that was sanctioned by the SEC.
 

 5. 
ASR 150 states that
a.
any standards, principles, and practices contrary to CAP, ARB and FASB standards are considered acceptable under the Securities Acts.
b.
accounting standards, principles and practices promulgated by the FASB, the APB, and the CAP are not automatically considered by the Commission as having "substantial authoritative support.”
c.
financial statements prepared in accordance with accounting principles for which there is no "substantial authoritative support" are presumed to be misleading.
d.
standards, principles, and practices contrary to CAP, ARB and FASB standards may have substantial authoritative support.
 

 6. 
According to the “House of GAAP,” which of the following would have been included in category (c)?
a.
FASB Technical Bulletins
b.
Emerging Issues Task Force Consensus Statements
c.
Accounting Research Bulletins
d.
AICPA Statements of Position
 

 7. 
Which of the following would constitute generally accepted accounting principles that are authoritative?

                  Accounting                 FASB Statements of
             Research Studies         Financial Accounting Concepts
a.
            Yes                                   No
b.
            Yes                                   Yes
c.
             No                                   Yes
d.
             No                                    No
 

 8. 
In the “House of GAAP,” which of the following would have been included in the most authoritative level (category (a)) of generally accepted accounting principles?

                  Accounting                 FASB Statements of
             Research Bulletins         Financial Accounting Standards
a.
            Yes                                   No
b.
            Yes                                   Yes
c.
             No                                   Yes
d.
             No                                    No
 

 9. 
The standard of "generally accepted accounting principles" includes
a.
 broad guidelines of general application
b.
 detailed rules and procedures
c.
both (a) and (b)
d.
neither (a) nor (b)
 

 10. 
Which of the following statements concernign the Accounting Standards Codification is false? The Accounting Standards Codfication
a.
eliminated the categories of gaap, (a) through (d) that were delineated in FAS Statement of Accounting Standards No. 162.
b.
created two levels of GAAP heirarchy, authoritative and nonauthorative.
c.
is not intended to change U.S. GAAP
d.
provides guidance for non-GAAP matters
 



 
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