GASB,FASB,IASB,SEC

Question 1

To determine the accounting treatment for a transaction, a governmental entity must first refer to:

Answer 1

the Codification of Governmental Accounting and Financial Reporting Standards.

Question 2

The GASB is to establish accounting and reporting standards for activities and transactions of state and local governmental entities. These include:

A.
states, counties, cities, towns, and independent school districts.
B.
state and local government educational institutions (colleges and universities).

C.
hospitals and other health care organizations, and charitable and other not-for-profit organizations that are government organizations.

D.
All above is correct

Answer 2

When the Financial Accounting Foundation (FAF) established the GASB in a brother-sister relationship with the FASB, the FAF established the following jurisdiction policy:
•The GASB is to establish accounting and reporting standards for activities and transactions of state and local governmental entities, which include states, counties, cities, and towns; independent school districts; state and local government educational institutions (colleges and universities); hospitals and other health care organizations; and charitable and other not-for-profit organizations that are government organizations.
•The FASB is to establish accounting and reporting standards for activities and transactions of all other entities.

Question 3

Which of the following statements best describes an operating procedure for issuing a new Financial Accounting Standards Board (FASB) Accounting Standards Update?

A.
The emerging issues task force must approve a discussion memorandum before it is disseminated to the public.

B.
The exposure draft is modified per public opinion before issuing the discussion memorandum.

C.
An update is issued only after a majority vote by the members of the FASB.

D.
A new FASB update can be rescinded by a majority vote of the AICPA membership.

Answer 3

An update is issued only after a majority vote by the members of the FASB.

Question 4

The goal of convergence is:

Answer 4

The phrase international convergence of accounting standards refers to both a goal and the path taken to reach it.
•The FASB believes that the ultimate goal of convergence is a single set of high-quality, international accounting standards that companies worldwide would use for both domestic and cross-border financial reporting.
•Today, the path toward that goal is the collaborative efforts of the FASB and the International Accounting Standards Board (IASB) to both improve U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) and eliminate the differences between them.

Question 5

Which entity develops and distributes accounting standards for non-U.S. companies?

Answer 5

IASB

Question 6

What types of rules are generally issued by the SEC?

Answer 6

The SEC issues Financial Reporting Releases that usually agree with U.S. GAAP.

Question 7

Which of the following statements concerning U.S. GAAP and IFRS is correct?

Answer 7

The U.S. generally accepted accounting principles (GAAP) are a very rule-based set of standards. The International Financial Reporting Standards (IFRS) tend to be based on principles rather than rules.

Question 8

The purpose of convergence of U.S. GAAP and IFRS is:

Answer 8

to make U.S. GAAP and IFRS uniform to enhance the globalization of business.