Financial Accounting and Accounting Standards MCQs

 

Previous Study: Intermediate Accounting MCQs

Next Lesson: .Generally Accepted Accounting Principles MCQs

Learning Objectives

After Practicing MCQs Set, you should be able to:

1. Distinguish between financial accounting and management accounting, highlighting key differences in purpose, reporting scope, and users of financial information.

2. Understand the historical development of Generally Accepted Accounting Principles (GAAP), tracing its evolution from regulatory bodies such as the American Institute of Certified Public Accountants (AICPA) and FASB.

3. Explain the operating procedures of the Financial Accounting Standards Board (FASB) in the development and issuance of GAAP, including the standard-setting process, public consultation, and the role of due process.

Check your understandings.

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Which of the following statements provides information about a company’s financial position at a specific point in time?

Correct! Wrong!

What is the role of the Financial Accounting Foundation (FAF)?

Correct! Wrong!

Which of the following FASB pronouncements serves as a comprehensive source of U.S. GAAP?

Correct! Wrong!

Which organization has the authority to regulate accounting standards for publicly traded companies in the U.S.?

Correct! Wrong!

Which organization issued Accounting Research Bulletins (ARBs) to provide guidance on accounting principles?

Correct! Wrong!

In management accounting, reports are usually generated?

Correct! Wrong!

Which organization oversees the operations of the FASB?

Correct! Wrong!

What is GAAP?

Correct! Wrong!

What type of documents does the FASB issue to provide updates and guidance on accounting standards?

Correct! Wrong!

Financial reporting standards are important because?

Correct! Wrong!

Which of the following is NOT a responsibility of the FASB?

Correct! Wrong!

Which of the following is the primary objective of financial reporting?

Correct! Wrong!

Which type of pronouncement provides a conceptual framework for financial reporting in the United States?

Correct! Wrong!

Which of the following is the primary purpose of the Notes to the Financial Statements?

Correct! Wrong!

What document is primarily issued by the FASB to provide guidance on accounting standards?

Correct! Wrong!

Which financial statement reports a company’s revenues and expenses over a period of time?

Correct! Wrong!

Which of the following groups are the primary users of general-purpose financial statements?

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The Accounting Principles Board (APB) was responsible for issuing accounting guidance between which years?

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Which of the following is typically not included in management accounting reports?

Correct! Wrong!

Which of the following is the global standard-setting body for financial reporting?

Correct! Wrong!

Which of the following is NOT a primary objective of GAAP?

Correct! Wrong!

Financial Accounting and Accounting Standards MCQs
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Reference

Hoyle, J. B., Schaefer, T., & Doupnik, T. (2020). Advanced Accounting (14th ed.). McGraw-Hill Education.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2024). Intermediate Accounting (18th ed.). Wiley.

Nikolai, L. A., Bazley, J. D., & Jones, J. P. (2020). Intermediate Accounting (13th ed.). Cengage Learning.

Sutton, T. (2004). Corporate Financial Accounting and Reporting. Pearson Education.

Spiceland, J. D., Nelson, M. W., & Thomas, W. B. (2024). Intermediate Accounting (11th ed.). McGraw-Hill Education.

Stice, E. K., Stice, J. D., & Skousen, F. K. (2021). Intermediate Accounting (20th ed.). Cengage Learning.

Scott, W. R. (2021). Financial Accounting Theory (8th ed.). Pearson.

Thomas, C. W., & Ward, M. (2022). Intermediate Accounting: Reporting and Analysis. McGraw-Hill Education.

Tarca, A., Brown, P., Hancock, P., Woodliff, D., Bradbury, M., & van Zijl, T. (2020). Understanding the IFRS Framework. Cambridge University Press.

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