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AKM Chapter 1 - FINANCIAL REPORTING AND ACCOUNTING STANDARDS
10 questions
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- 1. Multiple Choice
The financial statements most frequently provided include all of the following except the
statement of financial position.
income statement.
statement of cash flows.
statement of retained earnings.
- 2. Multiple Choice
Non-financial measurements include all of the following except
backlog information
customer satisfaction indexes.
reject rates on goods purchased
All of the choices are non-financial measurements
- 3. Multiple Choice
Significant financial reporting issues facing global financial reporting and efficient capital allocation include all of the following except
How to provide backward-looking information.
How to report nonfinancial measures such as customer satisfaction.
How to provide forward-looking information
How to provide real-time financial statement information
- 4. Multiple Choice
The international financial reporting environment includes challenges in financial reporting including all of the following except
Political environment.
Expectations gap.
Decision-usefulness
Ethics.
- 5. Multiple Choice
Which of the following is an ethical concern of accountants?
Earnings manipulation.
Conservative accounting.
Industry practices.
None of the above.
- 6. Multiple Choice
What is "expectation gap"?
The difference between what the public thinks the accountant is not doing and what the accountant knows they don't do.
The difference between what the public thinks the accountant should do and what Congress says the accountant should do.
The difference between what the public thinks the accountant should do and what the accountant thinks they can do.
The difference between what the accountant should do and what the Courts say the accountant should be doing.
- 7. Multiple Choice
What is a possible danger if politics plays too big a role in developing IFRS?
Financial reporting standards that are issued that are not truly generally accepted.
Individuals may influence the standards.
User groups become active.
The IASB delegates its authority to elected officials.
- 8. Multiple Choice
Which of the following is not a major challenge facing the accounting profession?
Nonfinancial measurements.
Timeliness.
Accounting for hard assets.
Forward-looking information.
- 9. Multiple Choice
Which of the following has the highest authoritative support?
International Financial Reporting Standards.
International Accounting Standards.
Interpretations of the IFRIC.
Framework for Financial Reporting.
- 10. Multiple Choice
Accrual accounting is used because
cash flows are considered less important.
it provides a better indication of ability to generate cash flows than the cash basis.
it recognizes revenues when cash is received and expenses when cash is paid.
None of these answers are correct
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