#01_Accounting Theory

International Financial Reporting Standards (IFRS) are issued by the:

• a.      EU (European Union).

• b. SEC (Securities and Exchange Commission).

• c. FASB (Financial Accounting Standards Board).

• d.      IASB (International Accounting Standards Board).

1. Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States (Publicy Company)?

• a.      Securities and Exchange Commission

• b.      Financial Accounting Standards Board

• c.      International Accounting Standards Committee

• d.      Internal Revenue Service

1. What historical evidence of the business operations of the private estate of Apollonius was discovered early in the 20th century?

• a.      The Iliad

•     b. Plato's Republic

• c. The Zenon papyri

• d. Pacioli’s work, Summa de Arithmetica Geometria Proportioni et Proportionalita,

1. Who has been given credit or developing the double-entry system of bookkeeping?

• a. Francis Wheat

• b. Fra Luca Pacioli

• c. A. C. Littleton

• d. William Paton

5. 5.Which organization was responsible for issuing Accounting Research Bulletins?

• a. The Committee on Accounting Procedure

• b. The Accounting Principles board

• c. The Financial Accounting Standards Board

• d. The Securities and Exchange Commission

Which of the following pronouncements were issued by the Accounting Principles Board?

• a. Accounting Research Bulletins

• b. APB Opinions

• c. Statements of Financial Accounting Concepts

• d. Accounting Standards Updates

1. Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board?

• a. The independence of the members of the APB. The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues.

• b. The structure of the board. The largest eight public accounting firms (at that time) were automatically awarded one member, and there were usually five or six other public accountants on the APB.

• c. Harmonization. The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee.

• d. Response time. The emerging accounting problems were not being investigated and solved quickly enough by the part-time members.

1. Which of the following is the professional organization of university accounting professors?

• a.      American Accounting Association

• b. American Institute of Certified Public Accountants

• c. American Institute of Accountants

• d. Financial Executives Institute

What controversy originally highlighted the need for standard setting groups to have more authority?

• a. Accounting for stock options

• b. Accounting for derivatives

• c. Accounting for marketable securities

• d. Accounting for the investment tax credit

1. Which of the following committees recommended abolishing the Accounting Principles Board and replacing it with the Financial Accounting Board?

• a. Wheat

• b. Cohen

• c. Trueblood

• d. Anderson