Question 1 Which of the fallowing is a characteristic of information provided by extemal financial reports? Not yet answered Select one Paints out of The information is exact and not subject to change. 1.00 a P Flag question b. The information pertains to the economy as a whole c The information is provided at the least possible cost d. None of the answers are correct e The information is frequently the result of reasonable estimates Question 2 According to FASB Statemont of Financial Accounting Concepts No. 2, which of the following is an ingredient of the quality of relevance? Not yet answered Select one Points out of 100 a neutrality F Fag question b none of the answers are correct c. timeliness d representational faithfulness e venfiability Question 3 What is the underlying concept that supports the immediate recognition of a loss? Not yet awwered Select one Points out of 00 a conservatism P Flag question b judgment c consistency d going concem e matching tka Question 4 Which statement is not true? Not yet antwered Select one: Points out of O a. All are correct 1.00 b. The Securities and Exchange Commission is a source of some generally accepted accounting principles P Flag question c. The Financial Accounting Standards Board is a source of some generally accepted accounting principles d. The American Institute of Certified Public Accountants is a source of some generally accpeted accounting principles e. The Internal Re Service is a source of some generally accepted accounting principles venue Queston 5 According to SFAC No. 6, assets can be defined by which of the folowing? Not yet answered Select one: Points out of a Residual interest on the assets of an entity that remains after deducting its liabilities 1.00 b. Decrease in equity of a particular businesss enterprise resulting from transferring assets, rendering services, or P Flag quesfion incurring labilities by the enterprise c Increases in equity of a particular business enterprise resulting from transfers to the enterprise from other entities of something of value to oblain or increase ownership interest (or equity) in it d Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events e Probable future sacrafices of economic benofits ansing from present obligations of a particular entity to transfer assots or to provide services to other entitios in the future as a result of past transactions or events SFAC No. 5 indicates that an item, to be recognized, should meet four criteria, subject to the cost-benefit constraint and the materiality threshold. Which of the following is not one of the four Question 6 Not yet answered criteria? Points out of 1.00 Select one: P Flag question a. The information related to teh item is relevant b. The item has comparability, including consistency c. The item fits one of the definitions of the elements O d. The item has a relevant attribute measurable with sufficient reliability e. The information related to the item is reliable Quesbon 7 SFAC No. 5 identifies five different measurement attributes currently used in practice. Which of the following is not one of the measurement attributes currently used in practice? Not yet answered Points out of Select one: 100 a. Present, or discounted, value of cash flows P Flag question b. Historical cost C. Future cost d. Net realizable value e. Current market value Question 8 Statement of Financial Accounting Concepts No. 1, "Objectives of Financial Reporting by Business Enterprises," includes all of the following objectives, except one. Which objective does it not include? Not yet answered Points out of 1.00 Select one: P Flag question a. Investors, creditors, and others may use reported eanings and information about the elements of financial statements in various ways to assess the prospects tor cash flows b. The primary focus of financial reporting is information about earnings and its components c. Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit and similar decisions d. Financial accoutning is designed to measure directly the value of a business enterprise. e. The objectives are those of general-purpose external financial reporting by business enterprises. Question Which of the following indicates how revenue is usually recognized? Not yet answered Select one: Points out of a. Point of sale 1.00 b. End of production P Flag question c. Cost recovery d. During production e. Receipt of cash Question 10 Which of the following does the Financial Accounting Standards Board not issue? Not yet answered Select one: Points out of a. Technical bulletins 1.00 b. SOPS P Flag question Interpretations C. d. SFACS e. SFASS
