Quiz Detail

Q1 . According to the FASB's conceptual framework, which of the following is an essential characteristic of a liability?

A Liabilities must be legally enforceable.

B The identity of the recipient entity must be known to the obligated entity before the time of settlement.

C Liabilities represent an obligation that has arisen as the result of a previous transaction.

D Liabilities must require the obligated entity to pay cash to a recipient entity.

Q2 . The reporting model described in the guidance on not-for-profit financial statements applies to

A Business entities and nongovernmental not-for-profit entities.

B Governmental not-for-profit entities that also use proprietary fund accounting.

C Business entities and governmental not-for-profit entities.

D Nongovernmental not-for-profit entities.

Q3 . Form 10-K is filed with the SEC to update the information a company supplied when filing a registration statement under the Securities Exchange Act of 1934. Form 10-K is a report that is currently filed

A Annually within 90 days of the end of a company’s fiscal year for non-accelerated filers.

B Monthly within 2 weeks of the end of each month.

C Quarterly within 45 days of the end of each quarter.

D Semiannually within 30 days of the end of a company’s second and fourth fiscal quarters.

Q4 . Financial information is most likely to be verifiable when an accounting transaction occurs that

A Is promptly recorded in a fixed amount of monetary units.

B Allocates revenues or expense items in a rational and systematic manner.

C Involves an arm’s-length transaction between two independent parties.

D Furthers the objectives of the entity.

Q5 . Which of the following assumptions means that money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis?

A Going concern.

B Periodicity.

C Economic entity.

D Monetary unit.

Q6 . A preliminary prospectus, permitted under SEC Regulations, is known as the

A Qualified prospectus.

B Unaudited prospectus.

C “Blue-sky” prospectus.

D “Red-herring” prospectus.

Q7 . Materiality and relevance are both defined by

A What influences or makes a difference to a decision maker.

B The perceived benefits to be denied that exceed the perceived costs associated with it.

C The consistency in the application of methods over time.

D Quantitative criteria set by the Financial Accounting Standards Board.

Q8 . According to the FASB's conceptual framework, which of the following attributes should notbe used to measure inventory?

A Replacement cost.

B Historical cost.

C Net realizable value.

D Present value of future cash flows.

Q9 . The resource providers of not-for-profit entities have which of the following as their primary concerns? I. Financial return on investmentII .Services rendered by the not-for-profit entityIII. The continuing ability of the not-for-profit entity to render servicesIV. Determining compliance with laws, rules, and regulations

A II, III, and IV.

B I, II, and III.

C II and III.

D I and IV.

Q10 . Under SFAC No. 6, Elements of Financial Statements, interrelated elements of financial statements include:Notes to financial statements?Distributions to owners?

A Notes to Financial Statements

B Neither

C Distributions to Owners

D Distributions to Owners and Notes to Financial Statements

Q11 . Under IFRS, all of the following are conditions that must be met for recognizing revenue from a sale of goods, except

A The entity has received the full consideration from the sale.

B The amount of the transaction can be reliably measured.

C The entity has transferred the significant risks and rewards of ownership.

D Transaction costs can be reliably measured.

Q12 . According to the FASB's conceptual framework, the objective of general-purpose financial reporting is most likely based on

A Reporting on how well management has discharged its responsibilities.

B Generally accepted accounting principles.

C The need for conservatism.

D The needs of the users of the information.

Q13 . According to the FASB's conceptual framework, noncurrent payables are usually measured and reported at

A Present value of future cash flows.

B Current market value.

C Historical proceeds.

D Settlement value.

Q14 . According to the FASB's conceptual framework, comprehensive income includes which of the following?Loss on Discontinued Operations? Invenstments by Owners?

A Neither

B Investments by Owners

C Both

D Loss on Discontinued Operations

Q15 . According to the FASB's conceptual framework, which of the following enhances information that is relevant and faithfully represented?

A Neutrality.

B Materiality.

C Comparability.

D Confirmatory value.

Q16 . According to the FASB's conceptual framework, the expected cash flow (ECF) approach to measuring present value

A Determines the single most likely amount or best estimate.

B Encompasses all expectations about possible cash flows.

C Uses a single set of estimated cash flows.

D Is limited to assets and liabilities with contractual cash flows.

Q17 . A company that is a large accelerated filer must file its Form 10-Q with the United States Securities and Exchange Commission within how many days after the end of the period?

A 45 days.

B 40 days.

C 60 days.

D 30 days.

Q18 . The FASB's conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income?

A Currently Reported Net Income= Financial Capital - Comprehensive Income = Financial Capital

B Currently Reported Net Income= Physical Capital - Comprehensive Income = Physical Capital

C Currently Reported Net Income= Physical Capital - Comprehensive Income = Financial Capital

D Currently Reported Net Income= Financial Capital - Comprehensive Income = Physical Capital

Q19 . The objective of present value when used to determine an accounting measurement for initial recognition purposes is to

A Estimate fair value.

B Capture the value of an asset or liability in the context of a given entity.

C Estimate value in use.

D Calculate the effective-settlement amount of assets.

Q20 . Which of the following does not describe a difference between the business-type activities and the governmental-type activities of a governmental entity?

A Business-type activities adopt budgets, but they often lack the legal force of the budget for governmental-type activities.

B Business-type activities involve a direct exchange of money in return for goods delivered or services rendered.

C Business-type activities have heavy investments in revenue-producing capital assets.

D Compared between governments than are governmental-type activities.

Far - The Financial Reporting Environment: Cash Flow Information And Present Value