please give me the answer of these multiple choice questions 1. The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except (Points: 4) eliminate inconsistencies in conceptual guidance on revenues replace principle-based accounting with rule-based accounting for revenues establish a single comprehensive standard on revenue recognition fill voids in revenue recognition guidance
2. Certain U.S. accounting standards have been, and will be, amended to aid in the international convergence process. The process of changing these standards usually involves (Points: 4) a short deliberation followed by a vote of the U.S. Congress acceptance of the change by the Internal Revenue Service rejecting all existing standards and developing an entirely new concept selecting the best standard between existing U.S. and international standards
3. Conversion to IFRS reporting by all U.S. companies would be best accomplished with a transition plan for all of the following reasons except (Points: 4) it would have to be a multi-year process it needs to be an orderly process with a minimum of cost and disruption to the participants certain IFRS need further improvement through continued convergence efforts careful planning would enable maximum manipulation of the IFRS for the financial benefit of the United States.
4. Which of the following are considered secondary characteristics of accounting information? (Points: 4) verifiability and feedback value predictive value and timeliness comparability and consistency representational faithfulness and neutrality
5. Two constraints mentioned by GAAP on qualitative characteristics are (Points: 4) understandability and decision usefulness comparability and consistency relevance and reliability benefits greater than costs and materiality
6. The IASB and FASB boards have agreed that the objective of general purpose financial reporting is to provide (Points: 4) financial information about a company that is useful to external users in making decisions in their capacity as capital providers mainly cash flow information about a company that is useful to external users in making decisions in their capacity as capital providers financial information about a company that is useful to internal users in making decisions in their capacity as capital custodians financial information about a company that is useful to government regulators in making decisions in their capacity as capital markets monitors
7. The IASB and FASB joint boards feel that financial reporting should (Points: 4) be general purpose be useful in assessing a company's future cash flows provide information on an accrual basis all of these are true
8. The IASB and FASB joint boards have identified the primary user groups of financial information as all of the following except (Points: 4) equity investors labor groups lenders other creditors (capital providers)
9. Similar to the constraints in the FASB's qualitative characteristics, the joint IASB/FASB boards have identified two constraints including (Points: 4) benefits that justify the costs and consistency benefits that justify the costs and materiality consistency and materiality objectivity and materiality
10. The joint IASB/FASB qualitative characteristics Exposure Draft identifies a logical order in which to evaluate the qualities. That order (first, second, third) is (Points: 4) faithful representation, relevance, enhancing characteristics relevance, enhancing characteristics, faithful representation relevance, faithful representation, enhancing characteristics enhancing characteristics, relevance, faithful representation
11. When reconciling its accounts, Ajax Company found the accounts receivable general ledger account had a balance of $30,000, and the accounts receivable subsidiary ledger account balances totaled $28,000. The most likely reason for this difference was (Points: 4) a sale to a customer was recorded twice in the subsidiary ledger cash received from a customer was posted twice to the subsidiary ledger a sale to a customer was not posted to the general ledger cash received from a customer was recorded twice in the general ledger
12. An organization will typically utilize a subsidiary ledger to (Points: 4) make sure all debits equal credits make it easier to handle cash received from customers keep customer accounts up to date record customer credit sales outside of the normal double entry system
13. The total of the individual customer account balances should equal the balance in accounts receivable, which is the (Points: 4) control account master account nominal account contra account
14. Which of the following transactions would be recorded in a sales journal of the type illustrated in the text? (Points: 4) customer return of merchandise originally bought on credit customer purchase of merchandise for cash sale by a used car dealer of part of the property surrounding his display lot customer purchase of merchandise on credit terms
15. Marge Company has all of the special journals that were described in your text (other than the voucher register) as a part of its accounting system. Which of the following journal entries would therefore be recorded in Marge's general journal? (Points: 4) an entry to record the sale of merchandise on credit an entry to record the sale of inventory on credit an entry to record the return of defective purchased merchandise for credit an entry to record a cash purchase of inventory
16. Which statement is true? (Points: 4) All purchases should be recorded in a purchases journal. Closing and reversing entries will be found in the sales journal. Returned merchandise from a customer should be entered in the sales journal. All cash sales should be recorded in the cash receipts journal.
17. Which statement is not true? (Points: 4) The general journal is still a necessity, even when special journals are used. If a cash payments journal is in use, postings are usually made only at the end of the month. All transactions involving the receipt of cash are recorded in the cash receipts journal. A purchase of a desk calculator for the office should not be recorded in the purchases journal.
18. The Waller Company uses the accrual basis of accounting. Waller Company's wages expense account had a $510,000 balance at the end of the year. The wages payable account had a $23,000 balance at the beginning of the year and a $45,000 balance at the end of the year. How much cash was paid for wages during the year? (Points: 4) $488,000 $510,000 $532,000 $555,000
19. Which of the following is not included in comprehensive income? (Points: 4) net income unrealized gains in the fair market value of equipment foreign currency translation adjustments certain pension plan gains (losses) and prior service cost adjustments
20. A reader might find information about gain contingencies in an annual report by examining (Points: 4) a contingent account receivable an accrued revenue a deferred revenue footnote disclosures
21. GAAP requires that all derivative financial instruments be reported at their (Points: 4) historical cost fair value present value par value
22. Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as (Points: 4) segment analysis significant relationships related-party transactions contingent activities
23. Under international accounting standards, liabilities and owners' equity on the balance sheet usually appear in which order? (Points: 4) capital, noncurrent liabilities, and current liabilities current liabilities, noncurrent liabilities, and capital capital, current liabilities, and noncurrent liabilities noncurrent liabilities, current liabilities, and capital
24. The SEC established integrated disclosures to (Points: 4) establish full disclosure demonstrate its legal authority to establish GAAP satisfy the form 10-K disclosure requirements control Management's Discussion and Analysis
25. When is a company not required to report comprehensive income? (Points: 4) when it has a net operating loss when it has no other comprehensive income items when it has no extraordinary items when it has no prior-period adjustments
HW-942 Accounting MCQ 1-25
