1.
Corporations whose securities are listed on a U.S. stock exchange are required to file audited financial statements with the Financial Accounting Standards Board.
A. True
B. False


2.
Accounting Research Bulletins (ARBs) were issued by the Accounting Principles Board (APB).
A. True
B. False


3.
APB Opinions were issued by the Accounting Practices Board.
A. True
B. False


4.
Financial Accounting Concepts are a major type of pronouncement issued by the FASB.
A. True
B. False


5.
The passage of a new FASB Standards Statement requires the support of three of five Board members.
A. True
B. False


6.
Financial reports generally focus on soft assets such as Apple's brand image or Wal-Mart's supply chain management system.
A. True
B. False


7.
The AICPA's Practice Bulletins provide the Accounting Standards Executive Committee's views on narrow financial reporting issues that have not been addressed by the FASB.
A. True
B. False


8.
Section 404 of the Sarbanes Oxley-Act requires public companies to attest to the effectiveness of their internal controls.
A. True
B. False


9.
Foreign companies that list on U.S. exchanges are required to use U.S. GAAP.
A. True
B. False


10.
All listed companies in the European Union use iGAAP.
A. True
B. False


11.
iGAAP is more “rule-based” in its approach to standards than U.S. GAAP.
A. True
B. False


12.
Which of the following generally provides a better indication of an enterprise's present and continuing ability to generate favorable cash flows?
A.
Cash basis accounting.
B.
Accrual basis accounting.
C.
Managerial basis accounting.
D.
Financial basis accounting.


13.
Which group selects members of the FASB?
A.
FAF.
B.
SEC.
C.
AICPA.
D.
FASAC.


14.
Which of the following is not a significant difference between the FASB and its predecessor, the APB?
A.
Greater autonomy.
B.
Larger membership.
C.
Increased independence.
D.
Broader representation.


15.
Which of the following organizations is not part of the current standard-setting structure?
A.
Financial Accounting Foundation.
B.
Financial Accounting Standards Board.
C.
Financial Accounting Council.
D.
Financial Accounting Standards Advisory Council.


16.
Which of the following documents is not issued during the due process system that results in a new pronouncement?
A.
Staff positions.
B.
FASB Standard.
C.
Exposure draft.
D.
Discussion memorandum.


17.
The Financial Accounting Standards Board is composed of how many board members?
A.
7.
B.
10.
C.
5.
D.
18.


18.
The organization whose purpose is to reach consensus on how to account for new and unusual financial transactions that have potential for creating differing financial reporting practices is the:
A.
FASB.
B.
FASAC.
C.
EITF.
D.
AICPA.


19.
All of the following are true regarding the FASB Codification except:
A.
the goal of the Codification was to provide one place where all authoritative literature about financial statement preparation could be found.
B.
the purpose of the Codification is to create new GAAP.
C.
the Codification was created to simplify user access.
D.
the Codification changes the way GAAP is documented, presented, and updated.


20.
International Financial Reporting Standards (IFRSs) are issued by the:
A.
FASB
B.
IASB
C.
SEC
D.
EU


21.
The Sarbanes Oxley Act does all of the following except:
A.
requires codes of ethics for senior financial officers.
B.
transfers the final authority for GAAP to the PCAOB.
C.
strengthens independence rules for auditors.
D.
requires independence and financial expertise for members of the audit committee.


22.
All of the following statements are true regarding convergence of U.S. GAAP with iGAAP except:
A.
foreign companies that trade shares in U.S. markets are required to reconcile their accounting with U.S. GAAP under these convergence efforts.
B.
the IASB has looked to the United States to determine the structure it should follow in establishing iGAAP.
C.
iGAAP standard-setting structure is very similar to the standard-setting structure in the United States.
D.
iGAAP tends to be less stringent in its disclosure requirements than U.S. GAAP.



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