Professional Documents
Culture Documents
https://testbankfan.com/download/intermediate-accounting-2014-fasb-update-15th-edi
tion-kieso-test-bank/
CHAPTER 2
CONCEPTUAL FRAMEWORK FOR FINANCIAL
REPORTING
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
T 1. Nature of conceptual framework.
T 2. Conceptual framework definition.
F 3. Levels of conceptual framework.
T 4 International conceptual framework.
F 5. Statements of Financial Accounting Concepts.
T 6. Objective of financial reporting.
F 7. Financial statement users.
T 8. Relevance and faithful representation.
T 9. Consistency.
F 10. Relevance.
F 11. Faithful representation.
F 12. Basic elements.
T 13. Comprehensive income.
T 14. Going concern assumption.
F 15. Economic entity assumption.
F 16. Expense recognition principle.
T 17. Recognizable revenues.
T 18. Supplementary information.
F 19. Cost benefit trade-off.
F 20. Conservatism.
MULTIPLE CHOICE—Conceptual
Answer No. Description
c 21. GAAP defined.
d 22. Purpose of conceptual framework.
c 23. Conceptual framework.
d 24. Conceptual framework purpose.
S
d 25. Conceptual framework benefits.
d 26. Objectives of financial reporting.
a 27. Decision usefulness.
d 28. General purpose of financial reporting.
a 29. Primary objective of financial reporting.
P
a 30. Example of comparability.
S
a 31. Primary quality of relevance.
b 32. Characteristic of accounting information.
c 33. Characteristic of accounting information.
c 34. Meaning of comparability.
a 35. Meaning of consistency.
THE SCANDAL.
THE CLAIMS.
“If you would ‘secure the blessings of liberty to ourselves and our
posterity,’ there must be some place reserved in which, and upon
which, posterity can exist. What will the blessings of liberty be worth
to posterity if you give up the country to the Chinese? If China is to
be the breeding-ground for peopling this country, what chance of
American posterity? We of this age hold this land in trust for our race
and kindred. We hold republican government and free institutions in
trust for American posterity. That trust ought not to be betrayed. If
the Chinese should invade the Pacific coast with arms in their hands,
what a magnificent spectacle of martial resistance would be
presented to a startled world! The mere intimation of an attempt to
make conquest of our western shore by force would rouse the nation
to a frenzy of enthusiasm in its defense. For years a peaceful, sly,
strategic conquest has been in progress, and American
statesmanship has been almost silent, until the people have
demanded action.
“The land which is being overrun by the oriental invader is the
fairest portion of our heritage. It is the land of the vine and the fig
tree; the home of the orange, the olive, and the pomegranate. Its