Ch 1 Quiz Answers

Question 1

The financial statements most frequently provided are :

Answer 1

1. Balance Sheet
2. Statement of Cash Flows
3. Statement of Stockholder’s Equity

NOT: Statement of Retained Earnings

Question 2

Challenges facing financial accounting include:

Answer 2

• Forward-looking information
• Soft Assets
• Timeliness
• Non-financial measurements

NOT: Financial measurements

Question 3

Financial Reporting objectives:

Answer 3

Financial Reporting Objectives are to provide information:

• At the least cost, the most useful info possible
• That is useful in investment and credit decisions
• That is useful in assessing cash flow prospects

NOT: About the management and major shareholders of an enterprise

Question 4

Organizations that have been instrumental in the development of financial accounting standards:

Answer 4

• AICPA
• FASB
• SEC

NOT: IMA (Institute of Mgmt Accountants)

Question 5

Accounting Standards Updates are issued by:

Answer 5

FASB - Financial Accounting Standards Board

Question 6

The first step taken in the establishment of a typical FASB statement is:

Answer 6

Topics are identified and placed on the board’s agenda.

Question 7

Accounting Research Bulletins were issued by:

Answer 7

CAP - Committee on Accounting Procedures

Question 8

APB Opinions were issued by :

Answer 8

APB - Accounting Principles Board

NOT: Practice

Question 9

Financial Accounting Concepts:

Answer 9

Financial Accounting Concepts are a major type of pronouncement issue by FASB