acc540 midterm quiz latest 2017

Midterm quiz Question 1 Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board? Harmonization. The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee. Response time. The emerging accounting problems were not being investigated and solved quickly enough by the parttime members. The independence of the members of the APB. The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues. The structure of the board. The largest eight public accounting firms (at that time) were automatically awarded one member and there were usually five or six other public accountants on the APB. Question 2 Which of the following is the professional organization of university accounting professors? Financial Executives Institute American Accounting Association American Institute of Certified Public Accountants American Institute of Accountants Question 3 The net realizable value of receivables is calculated as the face value of the receivables less adjustments for: credit sales. actual uncollected amounts adjusted for purchase discounts. estimated uncollectible accounts. bad debts already written off. Question 4 Who was the author of Accounting Research Study No. 1 The Basic Postulates of Accounting? Maurice Moonitz Thomas Hatfield Robert Sprouse Alvin Jennings Question 5 What is the objective of financial reporting? Provide information that excludes claims to the resources Provide information that is useful to management in making decisions Provide information that clearly portrays nonfinancial transactions Provide information about the reporting entity that is useful to present and potential equity investors lenders and other creditors Question 6 What is the name given to the agreement between the FASB and IASC to harmonize accounting standards? The Paris Accords The Norwalk Agreement The Washington DC agreement The London agreement Question 7 Which of the following is not a qualitative characteristic contained in the IASB’s Framework for the Preparation of Financial Statements? Understandability Reliability Relevance Timeliness Question 8 Which of the following research approaches is attributed to DR Scott? Inductive Deductive Ethical Pragmatic Question 9 Which of the following outcomes of providing accounting information is an attempt to identify individual securities that are mispriced by reviewing all available financial information? Capital asset pricing model Agency theory Efficient markets Fundamental analysis Question 10 A trading security is measured at fair value on the balance sheet date and reported as: a current asset and changes in fair value are reported in accumulated other comprehensive income as unrealized gains and losses. either a current or noncurrent asset depending on whether it meets the definition of a current asset. a current asset and changes in fair value are reported in earnings as unrealized gains and losses. a current asset and changes in fair value are reported in earnings as realized gains and losses. Question 11 What is goodwill? How is the recorded value of goodwill determined? How is goodwill written off under the provisions of SFAS No. 142 now FASB ASC 350?