Intermediate Acct ch1
Terms in this set (42)
External decision makers would not look primarily to financial accounting information to assist them in making decisions on
all of the following are sections of the statement of cash flows except
In a recent annual report, Apple computer reported the following in one of its disclosure notes: "Warranty Expense: The company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." This not exemplifies Apple's use of:
The matching principle
GAAP is an abbreviation for
Generally accepted accounting principles
A firm's comprehensive income always
could be greater than or less than net income
Which of the following has the authority to set accounting standards in the United States
Accounting standard setting has been characterized as
a politcal process
The international Accounting Standards Board
promotes the use of high-quality, understandable global accounting standards.
When a registrant company submits its annual filing to the SEC, it uses:
The recognition of which of the following expenses exemplifies the application of the matching principle?
cost of goods sold
assets minus liabilities
Net income equals
revenues minus expenses
increases in equity from peripheral transactions of an entity
Surefeet corporation changed its inventory valuation method. Which characteristic is jeopardized by this change?
Of the following, the most important objective for financial reporting is to provide information useful for
Elements of financial statements do not include:
Land was acquired in 2011 for a future building site at a cost of $40. The assessed valuation for tax purposes is $27, a qualified appraiser placed its value at $48, and a recent firm offer for the land was for a cash payment of $46. The land should be reported in the financial statement at:
Maltec Corporation has started placing its quarterly financial statements on its web page, thereby reducing by ten days the time to get information to investors and creditors. The qualitative concept improved is:
Change in equity from nonowner sources is:
The assumption that in the absence of contrary information a business entity will continue indefinitely is the:
Going concern assumption
Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. The company's independent accountants did not protest when, contrary to GAAP, the company recorded bad debt expense only when specific accounts were determined to be uncollectible, rather than use an allowance for uncollectible accounts. The concept demonstrated is:
If a company has gone bankrupt, its financial statements likely violate:
The going concern assumption
Which of the following is not an identified valuation technique in GAAP regarding fair value measurement?
Disclosure notes to a company's financial statements:
are an integral part of a company's financial statements
Which of the following best demonstrates the full disclosure principle
Disclosure notes to financial statements
The matching principle is:
An expense recognition accounting principle
To meet the needs of full disclosure, companies use supplemental information including:
a. Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation.
c. Parenthetical comments of modifying comments placed on the face of the financial statements.
d. Supplemental financial statements that report more detailed information than is shown in the primary financial statements.
Financial Accounting Standards Board was established in?
are useful in guiding the Board in establishing standards and in providing a frame of reference, or conceptual framework, for resolving accounting issues.
are an important element of the financial reporting system because they govern the minimum required content of financial statements of U.S. public companies.
Before the present structure was created, financial accounting and reporting standards were established first by the
Committee on accounting procedure of the American Institute of Certified Public Accountants and then by the Accounting Principles Board.
IASB stands for?
International Accounting Standards Board
IASB was formed in
The body that preceded the IASB was?
The international Accounting Standards Committee
Define IFRS as comprising
International Financial Reporting Standards
Compliance with IFRS states: An entity whose financial statements comply with IFRSs shall make an
explicit and unreserved statement of such compliance in the notes.
How many commissioners does the SEC have?
SEC stands for?
Securities and Exchange Commission
The name of the database that has disclosure documents that public companies are required to file with the commission is
If a company has more than:
10 million dollars in assets whose securities are held by more than 500 owners, then it must file annual and other periodic reports.