ACC/563 Week 3 Quiz – Strayer NEW
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Week 3 Quiz 2: Chapters 2 and 3
1. Which early accounting theorist was among the first to express the view that all changes in the value of assets and liabilities should be reflected in the financial statements ?\
a. A. C. Littleton
b. John Canning
c. William Paton
d. DR Scott
2. Which of the following economists most influenced the views of DR Scott?
a. Thorstein Veblen
b. John Hicks
c. Karl Marx
d. John Smith
3. Which of the following is not one of DR Scott’s hierarchy of accounting postulates and principles?
a. Orientation postulate.
b. The principles of truth and fairness.
c. The materiality principle
d. The principles of adaptability and consistency.
4. Which of the following organizations published the monograph titled A Tentative Statement of Accounting Principles Affecting Annual Corporate Reports
5. Which of the following organizations published the monograph titled A Statement of Accounting Principles?
6. Who was the author of Accounting Research Study No. 1, The Basic Postulates of Accounting?
a. Robert Sprouse
b. Maurice Moonitz
c. Alvin Jennings\
d. Thomas Hatfield
7. Which of the following is not an approaches to accounting theory AS categorized by Statement on Accounting Theory and Theory Acceptance?
c. Decision usefulness
d. Information economics.
8. Under Statement of Financial Accounting Concepts No. 2, feedback value is an ingredient of the primary quality o
a. No No
b. No Yes
c. Yes Yes
d. Yes No
9. Under Statement of Financial Accounting Concepts No. 2, which of the following interacts with both relevance and reliability to contribute to the usefulness of information?
d. Predictive value
10. Which of the following hierarchy of qualities did Statement of Financial Accounting Concepts No. 2 indicate as being most important?
d. Decision usefulness
11. Which of the following is considered a pervasive constraint by Statement of Financial Accounting Concepts No. 2
12. Under Statement of Financial Accounting Concepts No. 2, which of the following is an ingredient of the primary quality of relevance?
a. Predictive value
13. Under Statement of Financial Accounting Concepts No. 2, which of the following is an ingredient of the primary quality of reliability?
c. Predictive value
14. Under Statement of Financial Accounting Concepts No. 2, the ability through consensus of measures to ensure that information represents what it purports to represent is an example of the concept of
c. Representational faithfulness
d. Feedback value
15. Under Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability?
16. Which of the following is not a qualitative characteristic associated with reliability?
d. Faithful representation
17. An item is considered material if
a. It doesn’t costs a lot of money.
b. It is of a tangible good.
c. It is likely to influence the decision of an investor or creditor.
d. The cost of reporting the item is greater than its benefits
1. Discuss the contributions of Paton and Canning to the development of accounting theory.
2. Discuss DR Scott’s hierarchy of postulates and principles.
3. Discuss the contributions of the works by Sanders Hatfield and More, and Paton and Littleton to accounting theory.
4. Discuss accounting Research Study No. 1.
5. Discuss the objectives of accounting as outlined by the T rueblood Committee.
6. What were the approaches to accounting theory identified by SATTA?
7. According to Kuhn, how dies scientific progress occur?
8. What is the purpose of the conceptual framework?
9. List the objectives of financial accounting as outlined in SFAC No 1: “Objective of Financial Reporting by Business Enterprises.
10. What quality of information is viewed as the most important in SFAC No. 2: Qualitative Characteristics of Accounting Information?
11. Define the following terms:
12. According to SFAC No. 5, what should a full set of financial statements for a period show?
13. What is the purpose of SFAC No. 7: “Using Cash Flow Information and Present Value in Accounting Measurements?
14. What two approaches to present value were discussed in SFAS No. 7?
15. Discuss the issue of principles based vs. rule based accounting standards.
16. Discuss how the FASB and the IASC acted to improve comparability under the Norwalk Agreement.
Example Test Questions
1. Which of the following is not an environmental actor that could impact on the development of a country’s accounting system?
a. Level of education\
b. Political system
c. Geographic location
d. Legal system
2. What is the current acronym for the body most responsible for issuing international accounting standards?
3. How many trustees serve on the IASC Foundation?
4. How many members serve on the IASB?
5. Which of the following bodies has the responsibility to issue international financial reporting standards (IFRS)
a. The International Financial Reporting Interpretations Committee
b. The International Standards Advisory Council
c. The IASC Foundation
d. The International Accounting Standards Board
6. Which of the following is not a use of international accounting standards?
a. As national requirements.
b. As standards to be violated to improve intercountry comparability..
c. As an international benchmark for those countries that develop their own requirements.
d. By regulatory authorities for domestic and foreign companies
7. How does the IASC enforce its standards?
a. Through , the International Organization of Securities Commission
b. Through the concept of best endeavors
c. Through the Securities and Exchange Commission
d. Through the Financial Accounting Standards Board
8. What is the name given to the agreement between the FASB and IASC to harmonize accounting standards?
a. The Norwalk Agreement
b. The London agreement
c. The Washing ton D C agreement
d. The Paris Accords
9. What is the title of the form that foreign companies have used to reconcile their financial statements to U. S. GAAP?
a. Form 10-K
b. Form 10-Q
c. Form SX
10. Which of the following is not a qualitative characteristic contained in the IASB’s Framework for the Preparation of Financial Statements?
11. Which of the following is not an element of financial statements contained in the IASB’s Framework for the Preparation of Financial Statements?
12. Which of the following is seen as a pervasive difference between IASB’s and FASB’s Conceptual Frameworks?
a. Definition of elements
b. Number of qualitative characteristics
c. Scope of authority
d. Level of detail
13. Which of the following concepts is contained in the FASB’s conceptual framework but not in the IASC’s
b. Comprehensive income
1. Discuss the environmental factors that impact on the development of a country’s accounting system.
2. Discuss the approaches a company might take when issuing financial reports to users in foreign countries.
3. What is the purpose of the International Accounting Standards Board?
4. Discuss the factors that have contributed to the need for new approaches to international standard setting.
5. Discuss the IASB’s annual improvements project..
6. Discuss the composition and role of The International Accounting Standards Board..
7. Discuss the role of The International Financial Reporting Interpretations Committee
8. How are IASB standards used by various countries?
9. Discuss the Short-term International Convergence Project
10. Discuss the IASB-FASB Norwalk agreement.
11. List the milestones contained in the FASB-IASB Roadmap Convergence Project.
12. What is the objective of the joint FASB-IASB Convergence Project?
14. Under rules enacted prior to 2007, how could a foreign company list its securities for sale in U. S. capital markets? How did this rule change?
15. Discuss the objectives of accounting as defined by the IASB’s Framework for the Preparation of Financial Statements
16. Discuss the qualitative characteristics of accounting information as defined by the IASB’s
17. Discuss the elements of financial statements defined by the IASB’s Framework for the Preparation of Financial Statements.
18. Discuss the concepts of capital and capital maintenance discussed in the Framework for the Preparation of Financial Statements.
19. Discuss IFRS No. 1, “First Time Adoption of International Reporting Standards.