71. In the phrase "generally accepted accounting principles," the words
accounting principles
refers to:
A. The standards, assumptions, and concepts that serve as "ground rules" for financial reporting.
B. Ethical standards that prohibit fraudulent or misleading financial reporting.
C. The steps in the accounting cycle.
D. The accounting practices authorized by the Financial Accounting Standards Board (FASB).
72. Which of the following is not considered a return "of" investment?
A. Dividends.
B. Repayment of a loan.
C. Both of the above.
D. None of the above.
73. The accounting standards and concepts used in the preparation of financial statements are called:
A. Certified principles of accounting (CPA).
B. Generally accepted accounting principles (GAAP).
C. Federal accounting standards and bylaws (FASB).
D. Standards enforcing consistency (SEC).
74. Generally accepted accounting principles are the "ground rules" used in the preparation of:
A. Income tax returns.
B. All accounting reports.
C. Reports to federal and state regulatory agencies.
D. Financial statements.
75. The Financial Accounting Standards Board is:
A. Responsible for the review and audit of federal income tax returns.
B. Primarily concerned with the preparation of the annual federal budget.
C. A private group that conducts research and issues Statements that represent authoritative expressions of generally accepted accounting principles.
D. A government agency with legal authority to approve or disapprove the financial statements of corporations that sell their securities to the public.
76. Statements of Financial Accounting Standards are developed by:
A. The Financial Accounting Standards Board.
B. Certified public accountants.
C. The Securities and Exchange Commission.
D. The Internal Revenue Service.
77. Which of the following are considered "external" users of financial statements?
A. Owners.
B. Creditors.
C. Labor unions.
D. All three are external users.
78. Which of the following is
not
recognized as a source of generally accepted accounting principles?
A. Widespread and long-term use of a particular practice.
B. The Financial Accounting Standards Board (FASB).
C. The American Institute of Certified Public Accountants (AICPA).
D. None of the above. Generally accepted accounting principles may arise from each of these sources.
79. In the phrase "generally accepted accounting principles," the words
generally accepted
mean that the principles:
A. Have been adopted by Congress or approved by the voters in a general election.
B. Are acceptable to the Internal Revenue Service.
C. Are understood and observed by all the participants in the financial reporting process.
D. Have been approved by a majority of the members of the Financial Accounting Standards Board.
80. An accounting principle must receive substantial authoritative support to qualify as generally accepted. Among the organizations and agencies that have been influential in the development of generally accepted accounting principles, which of the following has provided the
most
influential leadership?
A. Internal Revenue Service.
B. Institute of Management Accountants.
C. Financial Accounting Standards Board.
D. New York Stock Exchange.