11.The FASB developed the conceptual framework to provide guidance in the development of
a.auditing standards
b.financial statements
c.accounting standards
d.hiring practices
12.Which of the following is a step in the FASB Standard-Setting Process:
a.accounting issues are identified
b.exposure draft is issued
c.public hearings are held
d.all of the above are steps in the process
13.The document that describes a proposed accounting standard is the:
a.discussion memorandum
b.exposure draft
c.recognition statement
d.SEC Memorandum
14.The list that identifies information that should be contained in financial statements is known as the:
a.elements of financial statements
b.recognition and measurement criteria
c.relevance and reliability characteristics
d.qualitative characteristics
15.The agency responsible establishing standards for State and Local government is the:
a.GASB
b.FASB
c.GAO
d.SEC
16.The conceptual framework of the FASB:
a.provides guidance in the development of accounting standards
b.proposes legislation to protect creditors
c.governs the size of a company’s Board of Directors
d.follows rules established by the Internal Revenue Service
17.The "periodic measurement" concept is important in that
a.cash flow from operations will always be larger than net income
b.the accounting records cannot be accurate without it
c.the FASB Standard-Setting process is dependent on it
d.it provides for timely reporting of financial information that is needed for effective decision making
18.Which of the following criteria relates directly to information that should be contained in financial statements?
a.qualitative criteria
b.relevant criteria
c.neutral and verifiable criteria
d.recognition and measurement criteria
19.The two primary qualities that result in accounting information being useful are:
a.recognition and measurement criteria
b.summary and accuracy
c.exposure and responsiveness
d.relevance and reliability
20.Which of the following is NOT included in a corporate annual report:
a.letter from the President or CEO
b.summary of selected business data
c.budget for upcoming year
d.financial statements