Generally Accepted Accounting Policies

Question 1

Which of the following organizations is currently responsible for setting accounting standards in the United States?

A Accounting Principles Board

B Committee on Accounting Procedures

C Financial Accounting Standards Board

D Securities and Exchange Commission

Answer 1

C

Question 2

What is the primary purpose of Accounting Standards Codification by the FASB?

A Organize accounting standards by number rather than topic

B Increase the number of accounting standards

C Decrease the number of accounting standards

D Organize accounting standards by topic rather than number

Answer 2

D

Question 3

International Financial Reporting Standards are currently set by which organization?

A International Accounting Standards Committee

B International Accounting Standards Board

C International Financial Reporting Committee

D International Financial Reporting Board

Answer 3

B

Question 4

Which of the following statements is correct regarding the accounting standards currently use in the United States?

A Companies must use US GAAP

B Companies may use either US GAAP or IFRS

C Companies may use GAAP from any recognized country around the world

D Companies must use IFRS

Answer 4

A

Question 5

How many countries currently permit or require financial reporting under IFRS?

A Approximately 10

B Approximately 50

C Approximately 75

D Over 100

Answer 5

D