Acc502 Keller
Week 1 assignment 1
1CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify astrue or false. If false, explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.Solution: 1- True 2- False 3- True 4- False
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choicequestions.
1. GAAP stands for: o (a) governmental auditing and accounting practices. o (b) generally accepted attest principles. o (c) government audit and attest policies. o (d) generally accepted accounting principles. 2. Accounting standard-setters use the following process in establishing accounting standards: o (a) Research, exposure draft, discussion paper, standard. o (b) Discussion paper, research, exposure draft, standard. o (c) Research, preliminary views, discussion paper, standard. o (d) Research, discussion paper, exposure draft, standard. 3. GAAP is comprised of: o (a) FASB standards, interpretations, and concepts statements. o (b) FASB financial standards. o (c) FASB standards, interpretations, EITF consensuses, and accounting rules issued by FASB predecessor organizations. o (d) any accounting guidance included in the FASB Codification
4. The authoritative status of the conceptual framework is as follows. o (a) It is used when there is no standard or interpretation related to the reporting issues under consideration. o (b) It is not as authoritative as a standard but takes precedence over any interpretation related to the reporting issue. o (c) It takes precedence over all other authoritative literature. o (d)
1CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify astrue or false. If false, explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.Solution: 1- True 2- False 3- True 4- False
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choicequestions.
1. GAAP stands for: o (a) governmental auditing and accounting practices. o (b) generally accepted attest principles. o (c) government audit and attest policies. o (d) generally accepted accounting principles. 2. Accounting standard-setters use the following process in establishing accounting standards: o (a) Research, exposure draft, discussion paper, standard. o (b) Discussion paper, research, exposure draft, standard. o (c) Research, preliminary views, discussion paper, standard. o (d) Research, discussion paper, exposure draft, standard. 3. GAAP is comprised of: o (a) FASB standards, interpretations, and concepts statements. o (b) FASB financial standards. o (c) FASB standards, interpretations, EITF consensuses, and accounting rules issued by FASB predecessor organizations. o (d) any accounting guidance included in the FASB Codification
4. The authoritative status of the conceptual framework is as follows. o (a) It is used when there is no standard or interpretation related to the reporting issues under consideration. o (b) It is not as authoritative as a standard but takes precedence over any interpretation related to the reporting issue. o (c) It takes precedence over all other authoritative literature. o (d)