Intermediate Accounting Reporting and Analysis 2017 Update 2nd Edition By James M Wahlen Jefferson P Jones Donald P Pagach-Test Bank

Test Bank For Intermediate Accounting Reporting and Analysis 2017 Update 2nd Edition By James M Wahlen Jefferson P Jones Donald P Pagach

ISBN-10:1337116610 , ISBN-13:978-1337116619

1. A problem arising from equal information is called information asymmetry.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

2. The demand for relevant and reliable financial information stems from the needs of the internal and external stakeholders.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

3. The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and assist in the formation of capital.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.2 – LO: 1.2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

4. The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies, exchanges, and investors.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.2 – LO: 1.2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

5. The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the Accounting Principles Board (APB).
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.3 – LO: 1.3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

6. ​FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing timely but more narrow and specific standard setting issues.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.3 – LO: 1.3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

7. The Codification is set up as a system of levels starting with sections, topics, and subtopics.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.4 – LO: 1.4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

8. The Codification was established to assist in reducing the time necessary to research an accounting issue and improve the ability to utilize accounting information that conforms with GAAP.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.4 – LO: 1.4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

9. The convergence project between the IASB and GAAP was initiated in 2002 when the two boards entered into the “Northward Agreement”.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.5 – LO: 1.5
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

10. A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S. GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause some companies more harm than good.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.5 – LO: 1.5
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

11. The balance sheet is a snapshot of a company’s financial position at a particular date.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.6 – LO: 1.6
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

12. The statement of shareholders’ equity reports the effects from the recognition or valuation of certain asset or liability transactions that change Accumulated Other Comprehensive Income.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.6 – LO: 1.6
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

13. “In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities.” This is the Integrity Principle of the AICPA Code of Professional Conduct.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.7 – LO: 1.7
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

14. “Members should act in a way that will service the public interest, honor the public trust, and demonstrate commitment to professionalism.” This is the Public Interest Principle of the AICPA’s Code of Professional Conduct.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.7 – LO: 1.7
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

15. Creditors’ information needs revolve around all of the following decisions, except
a.  extending credit
b.  maintaining a credit relationship
c.  not extending credit
d.  investing in credit instruments’

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

16. Which of the following is an internal user of a company’s financial information?
a.  company treasurer
b.  shareholder in the company
c.  bank lending to the company
d.  Union

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

17. After formulating a strategic plan, a company will engage in what three types of activities?
a.  Planning, operating, and selling
b.  Investing, operating, and selling
c.  Financing, investing, and operating
d.  Operating, planning, and financing

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

18. What is Financial Reporting?
a.  The process of communicating internal accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
b.  The process of communicating financial accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
c.  The process of preparing financial accounting information to existing and potential investors, managers, and employees.
d.  The process of communicating the strategic plan to existing and potential investors, creditors, lenders, and other external decision makers.

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

19. When making decisions, equity investors are interested in assessing
a.  the company’s ability to generate cash flows.
b.  management’s ability to increase the capital providers’ investments.
c.  the company’s ability to pay dividends.
d.  All of these choices

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

20. Which of the following is not a decision that external stakeholder’s of a company’s financial information would make?
a.  whether or not to extend credit to the company
b.  whether or not to hold the company’s stock
c.  whether or not the company should add a new product line
d.  whether or not to ask for an increase in employees’ benefits during union contract negotiations

ANSWER:   c
POINTS:   1
DIFFICULTY:   Easy
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

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