Intermediate Accounting Reporting and Analysis 2017 Update 2nd Edition By James M Wahlen Jefferson P Jones Donald P Pagach-Test Bank

Test Bank For Intermediate Accounting Reporting and Analysis 2017 Update 2nd Edition By James M Wahlen Jefferson P Jones Donald P Pagach

ISBN-10:1337116610 , ISBN-13:978-1337116619

1. A challenge associated with equal information is known as information asymmetry.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

2. The necessity for pertinent and trustworthy financial information originates from the requirements of the internal and external stakeholders.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

3. The objective of the Securities and Exchange Commission is to safeguard investors, maintain fair, well-organized, and efficient markets, and aid in the creation of capital.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.2 – LO: 1.2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

4. The SEC exercises its authority to set accounting standards, while concurrently enforcing regulations on companies, exchanges, and investors.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.2 – LO: 1.2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

5. The establishment of the Financial Accounting Standards Board (FASB) commenced in 1973 following the phase-out of the Accounting Principles Board (APB) by AICPA.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.3 – LO: 1.3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

6. ​The Emerging Issues Task Force of FASB aids and counsels the FASB in recognizing and addressing timely yet more focused and specific standard setting matters.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.3 – LO: 1.3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

7. The Codification is organized as a hierarchy beginning with sections, topics, and subtopics.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.4 – LO: 1.4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

8. The Codification was initialized to aid in decreasing the time required to investigate an accounting matter and enhance the capacity to utilize accounting information compliant with GAAP.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.4 – LO: 1.4
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

9. The collaboration effort between the IASB and GAAP commenced in 2002 when the two boards agreed to the “Northward Agreement”.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.5 – LO: 1.5
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

10. An issue that may arise from the collaboration project is that many companies have entered into agreements based on U.S. GAAP financial reporting; renegotiating these contracts using IFRS could potentially harm some companies more than benefit them.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.5 – LO: 1.5
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

11. The balance sheet represents a company’s financial status at a specific point in time.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.6 – LO: 1.6
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

12. The statement of shareholders’ equity indicates the impacts from the recognition or valuation of specific asset or liability transactions altering Accumulated Other Comprehensive Income.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.6 – LO: 1.6
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

13. “When executing their professional duties, individuals must apply sensitive professional and ethical judgments in all their endeavors.” This is the Integrity Principle of the AICPA Code of Professional Conduct.
a.  True
b.  False

ANSWER:   False
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.7 – LO: 1.7
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

14. “Individuals should act in a manner that will benefit the public interest, uphold the public trust, and exhibit dedication to professionalism.” This is the Public Interest Principle of the AICPA’s Code of Professional Conduct.
a.  True
b.  False

ANSWER:   True
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.7 – LO: 1.7
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

15. Creditors’ information needs encompass all of the following decisions, with the exception of
a.  extending credit
b.  maintaining a credit relationship
c.  not extending credit
d.  investing in credit instruments’

ANSWER:   d
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

16. Who among the following is an internal user of a company’s financial information?
a.  company treasurer
b.  shareholder in the company
c.  bank lending to the company
d.  Union

ANSWER:   a
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Decision Modeling
KEYWORDS:   Bloom’s: Remembering

17. Following the development of a strategic plan, a company will undertake which three types of activities?
a.  Planning, operating, and selling
b.  Investing, operating, and selling
c.  Financing, investing, and operating
d.  Operating, planning, and financing

ANSWER:   c
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

18. What does Financial Reporting involve?
a.  The process of communicating internal accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
b.  The process of communicating financial accounting information to existing and potential investors, creditors, lenders, and other external decision makers.
c.  The process of preparing financial accounting information to existing and potential investors, managers, and employees.
d.  The process of communicating the strategic plan to existing and potential investors, creditors, lenders, and other external decision makers.

ANSWER:   b
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

19. When making decisions, equity investors are keen on evaluating
a.  the company’s ability to generate cash flows.
b.  management’s ability to increase the capital providers’ investments.
c.  the company’s ability to pay dividends.
d.  All of these choices

ANSWER:   d
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

20. Which of the following does not pertain to a decision that external stakeholders of a company’s financial information would make?
a.  whether or not to extend credit to the company
b.  whether or not to hold the company’s stock
c.  whether or not the company should add a new product line
d.  whether or not to ask for an increase in employees’ benefits during union contract negotiations

ANSWER:   c
POINTS:   1
DIFFICULTY:   Elementary
LEARNING OBJECTIVES:   ACCT.WHAL.16.1.1 – LO: 1.1
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking – BUSPROG: Analytic
LOCAL STANDARDS:   United States – OH – Default City – AICPA: FN-Reporting
KEYWORDS:   Bloom’s: Remembering

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