Module 9

Question 1

Single Source for US GAAP

Answer 1

Accounting Standards Codification (ASC)

Question 2

ASC replaced all…

Answer 2

non-SEC literature

Question 3

ASU

Answer 3

Accounting Standards Updates (they update the codification)

Question 4

SFAC

Answer 4

Statement of Financial Accounting Concepts

Question 5

SFAC do not constitute GAAP and

Answer 5

are not part of the codification

Question 6

SFAC 8 is the most recent attempt to to develop

Answer 6

Accounting theory as a joint project between FASB and IASB

Question 7

IASB

Answer 7

International Accounting Standards Board

Question 8

Elements of financial statements are

Answer 8

the components from which financial statements are created (assets, liabilities, equity, investments by owners, distributions to owners, comprehensive income, revenues, expenses, gains, and losses)

Question 9

Primary users of financial reporting are

Answer 9

investors, lenders, and other creditors

Question 10

Management is not a primary user of financial information because

Answer 10

they can obtain the information internally.

Question 11

Regulators and members of the public are considered primary users according to SFAC 8. True or False

Answer 11

False

Question 12

In order to included in statements an item must:

Answer 12

qualify as an element, meet recognition criteria, and be measurable.