Intermediate Accounting 9th Edition By Spiceland – Test Bank

Test Bank For Intermediate Accounting 9th Edition By Spiceland

Chapter 1 Atmosphere and Theoretical Construction of Monetary Accounting
1–1
True/False Questions
1. The first perform of economic accounting is to supply related monetary info to
events exterior to enterprise enterprises.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-01
Matter Space: Atmosphere of economic accounting and reporting
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Vital Pondering

2. Accrual accounting makes an attempt to measure revenues and bills that occurred throughout
accounting intervals so that they equal internet working money move.
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-02
Matter Space: Money versus accrual accounting
Blooms: Perceive
AACSB: Reflective pondering
AICPA: FN Measurement

3. The FASB is at the moment the public-sector group liable for setting accounting
requirements in the USA.
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-03
Matter Space: Growth of accounting and reporting requirements
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Authorized

4. The FASB’s due course of invitations numerous events to point their opinions about
whether or not monetary accounting requirements ought to be modified.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-04
Matter Space: GAAP―Normal-setting course of
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Authorized

5. Accounting for stock-based compensation is an space by which the FASB has acquired little
political interference.
Chapter 1 Atmosphere and Theoretical Construction of Monetary Accounting
1–2
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-04
Matter Space: GAAP―Normal-setting course of
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Authorized

6. The Public Reform and Investor Safety Act of 2002 (Sarbanes-Oxley) modified the entity
liable for setting auditing requirements in the USA.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-05
Matter Space: Encouraging high-quality monetary reporting
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Authorized

7. A rules-based strategy to standard-setting stresses skilled judgment versus
following a listing of guidelines.
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-05
Matter Space: Encouraging high-quality monetary reporting
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Vital Pondering

8. Below federal securities legal guidelines, the SEC has the authority to set accounting requirements within the
United States.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-03
Matter Space: Growth of accounting and reporting requirements
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Authorized

9. The first duty for correctly making use of GAAP when speaking with traders
and collectors by way of monetary statements lies with a agency’s auditors.
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-05
Matter Space: Encouraging high-quality monetary reporting
Chapter 1 Atmosphere and Theoretical Construction of Monetary Accounting
1–3
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Vital Pondering

10. Auditors play an necessary function within the useful resource allocation course of by including credibility to
monetary statements.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-05
Matter Space: Encouraging high-quality monetary reporting
Blooms: Perceive
AACSB: Reflective pondering
AICPA: BB Vital Pondering

11. The aim of the conceptual framework is to supply a construction and framework for a
constant set of GAAP.
Reply: True
Stage of Studying: 1 Straightforward
Studying Goal: 01-06
Matter Space: Conceptual framework―Objective
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Vital Pondering

12. In the USA the conceptual framework signifies GAAP when a extra particular
accounting commonplace doesn’t apply.
Reply: False
Stage of Studying: 1 Straightforward
Studying Goal: 01-06
Matter Space: Conceptual framework―Objective
Blooms: Bear in mind
AACSB: Reflective pondering
AICPA: BB Vital Pondering

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