Development of U.S. Accounting Standards

Which of the following statements about the development of U.S. accounting standards is false?

• The FASB exercises rulemaking authority delegated by the SEC.

• The Financial Accounting Standards Advisory Council (FASAC) evaluates the FASB's performance.

• The Financial Accounting Foundation oversees the FASB.

• Pronouncements of the FASB's predecessor bodies remain in force until amended or superseded by the FASB.

The FASB's conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income?

• Currently Reported Net Income - Financial Capital. Comprehensive Income - Financial Capital

• Currently Reported Net Income - Physical Capital. Comprehensive Income - Physical Capital

• Currently Reported Net Income - Physical Capital. Comprehensive Income - Financial Capital

• Currently Reported Net Income - Financial Capital. Comprehensive Income - Physical Capital

What type of cost is the amount of cash that would have to be paid for a current acquisition of the same or an equivalent asset?

• Present value

• Net realizable value (nrv)

• Current (Replacement) Cost

• Net settlement Value

Integral Corp. is subject to the reporting provisions of the Securities Exchange Act of 1934. For its current fiscal year, Integral filed the following with the SEC: quarterly reports, an annual report, and a periodic report listing newly appointed officers of the corporation. Integral did not notify the SEC of shareholder "short-swing" profits, did not report that a competitor made a tender offer to Integral's shareholders, and did not report changes in the price of its stock as sold on the New York Stock Exchange. Under the SEC reporting requirements, which of the following was Integral required to do?

• Report the tender offer to the SEC.

• Report the changes in the market price of its stock.

• File the periodic report listing newly appointed officers.

• Notify the SEC of shareholder "short-swing" profits

True or False - A major objection to the adoption of IFRS is that small businesses must expend resources complying with burdensome regulations designed for large corporations.

• True

• False

Expenses and losses have historically been subject to more stringent recognition criteria than revenues and gains.

• True

• False

Which of the following is ordinarily not considered one of the major distinguishing characteristics of not-for-profit entities (NFPs)?

• Performance indicators similar to a business enterprise's profit are readily available.

• The primary operating purpose is not to provide goods or services at a profit.

• Significant amounts of resources are provided by donors in nonreciprocal transactions.

• Defined, transferable ownership interests do not exist.

Under the FASB Accounting Standards Codification, updates to GAAP are made as

• Statements of Financial Accounting Standards.

• Accounting Standard Updates.

• Exposure Drafts.

• Accounting Statements of Position.

The stakeholders of NFPs include

• Resource providers

• Members to whom certain economic benefits are provided directly.

• Shareholders

• Investors

One distinguishing characteristic of not-for-profit, nongovernmental entities is that they have no single indicator of performance, such as net income for business entities.

• True

• False