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     41.     The Financial Accounting Standards Board employs a "due process" system which
a.     is an efficient system for collecting dues from members.
b.     enables interested parties to express their views on issues under consideration.
c.     identifies the accounting issues that are the most important.
d.     requires that all accountants must receive a copy of financial standards.

     42.     Which of the following is not a publication of the FASB?
a.     Statements of Financial Accounting Concepts
b.     Accounting Research Bulletins
c.     Interpretations
d.     Technical Bulletins

     43.     FASB Technical Bulletins
a.     are similar to FASB Interpretations in that they establish enforceable standards under the AICPA's Code of Professional Ethics.
b.     are issued monthly by the FASB to deal with current topics.
c.     are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle.
d.     were recently discontinued by the FASB because they dealt with specialized topics having little impact on financial reporting in general.

     44.     The purpose of the Emerging Issues Task Force is to
a.     develop a conceptual framework as a frame of reference for the solution of future problems.
b.     lobby the FASB on issues that affect a particular industry.
c.     do research on issues that relate to long-term accounting problems.
d.     issue statements which reflect a consensus on how to account for new and unusual financial transactions that need to be resolved quickly.

     45.     The Governmental Accounting Standards Board
a.     oversees the activities of the SEC.
b.     is a private-sector body, which addresses state and local governmental reporting issues.
c.     is a division of the Securities and Exchange Commission, which oversees the corpo-rate accounting in annual reports.
d.     was terminated when the Financial Accounting Standards Board was created.

     46.     The Governmental Accounting Standards Board's main purpose is to develop standards for
a.     the General Accounting Office.
b.     the Federal government.
c.     state and local government.
d.     the Internal Revenue Service.

     47.     Which of the following organizations has not been instrumental in the development of financial accounting standards in the United States?
a.     AICPA
b.     FASB
c.     IASB
d.     SEC

     48.     An organization that has not published accounting standards is the
a.     American Institute of Certified Public Accountants.
b.     Securities and Exchange Commission.
c.     Financial Accounting Standards Board.
d.     All of these have published accounting standards.

     49.     The purpose of Statements of Financial Accounting Concepts is to
a.     establish GAAP.
b.     modify or extend the existing FASB Standards Statement.
c.     form a conceptual framework for solving existing and emerging problems.
d.     determine the need for FASB involvement in an emerging issue.

     P50.     Members of the Financial Accounting Standards Board are
a.     employed by the American Institute of Certified Public Accountants (AICPA).
b.     part-time employees.
c.     required to hold a CPA certificate.
d.     independent of any other organization.

     P51.     The following published documents are part of the "due process" system used by the FASB in the evolution of a typical FASB Statement of Financial Accounting Standards:

  1.      Exposure Draft
  2.      Statement of Financial Accounting Standards
  3.      Discussion Memorandum

The chronological order in which these items are released is as follows:
a.     1, 2, 3.
b.     1, 3, 2.
c.     2, 3, 1.
d.     3, 1, 2.

     P52.     In the House of GAAP, is the following on the highest level of authoritative status (meaning among the most authoritative)?
          FASB          FASB
          Statement          Statement
     FASB     of Financial          of Financial
     Technical     Accounting     FASB     Accounting
     Bulletin     Standards     Interpretation          Concepts
a.     Yes     Yes     Yes     Yes
b.     Yes     Yes     Yes     No
c.     No     Yes     No     No
d.     No     Yes     Yes     No

     53.     Generally Accepted Accounting Principles include: 1) FASB Technical Bulletins, 2) APB Opinions, and 3) Widely-accepted industry practices. These three items rank from most authoritative to least authoritative as follows:
a.     1, 2, 3.
b.     1, 3, 2.
c.     2, 1, 3.
d.     2, 3, 1.

     54.     Generally accepted accounting principles
a.     include detailed practices and procedures as well as broad guidelines of general application.
b.     are influenced by pronouncements of the SEC and IRS.
c.     change over time as the nature of the business environment changes.
d.     all of these.

     55.     The most significant current source of generally accepted accounting principles is the
a.     AICPA.
b.     SEC.
c.     APB.
d.     FASB.

     56.     The most authoritative category of generally accepted accounting principles includes all of the following except
a.     Accounting Research Bulletins.
b.     APB Opinions.
c.     FASB Standards.
d.     FASB Technical Bulletins.

     57.     Which of the following is not a part of generally accepted accounting principles?
a.     FASB Interpretations
b.     CAP Accounting Research Bulletins
c.     APB Opinions
d.     All of these are part of generally accepted accounting principles.

     58.     Which of the following publications does not qualify as a statement of generally accepted accounting principles?
a.     Statements of financial standards issued by the FASB
b.     Accounting interpretations issued by the FASB
c.     APB Opinions
d.     Accounting research studies issued by the AICPA

     59.     Financial accounting standard-setting in the United States
a.     can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic.
b.     is based solely on research and empirical findings.
c.     is a legalistic process based on rules promulgated by governmental agencies.
d.     is democratic in the sense that a majority of accountants must agree with a standard before it becomes enforceable.

     60.     The purpose of the International Accounting Standards Board is to
a.     issue enforceable standards which regulate the financial accounting and reporting of multinational corporations.
b.     develop a uniform currency in which the financial transactions of companies through-out the world would be measured.
c.     promote uniform accounting standards among countries of the world.
d.     arbitrate accounting disputes between auditors and international companies.

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