Which of the following is not true of accounting principles? Financial accountants follow generally accepted accounting principles (GAAP). Following GAAP allows accounting information users to compare one company to another. A new accounting principle can be adopted with stockholders' approval. The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles. c ANSWER: Moderate DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.01-02 - LO: 01-02 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 - GAAP ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic The initials GAAP stand for General Accounting Procedures Generally Accepted Plans Generally Accepted Accounting Principles Generally Accepted Accounting Practices c ANSWER: Moderate DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.01-02 - LO: 01-02 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 GAAP ACCREDITING STANDARDS: – ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic Assets are always lower than liabilities equal to liabilities less stockholders' equity the same as expenses because they are acquired with cash financed by the stockholders and/or creditors d ANSWER: Easy DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic Debts owed by a business are referred to as accounts receivables expenses stockholders' equity liabilities d ANSWER: Easy DIFFICULTY:
Which of the following is not true of accounting principles? Financial accountants follow generally accepted accounting principles (GAAP). Following GAAP allows accounting information users to compare one company to another. A new accounting principle can be adopted with stockholders' approval. The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles. ANSWER: c DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.01-02 - LO: 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic The initials GAAP stand for General Accounting Procedures Generally Accepted Plans Generally Accepted Accounting Principles Generally Accepted Accounting Practices ANSWER: c DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.01-02 - LO: 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 – GAAP ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic Assets are always lower than liabilities equal to liabilities less stockholders' equity the same as expenses because they are acquired with cash financed by the stockholders and/or creditors ANSWER: d DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic Debts owed by a business are referred to as accounts receivables expenses stockholders' equity liabilities ANSWER: d DIFFICULTY: Easy
FinMan_Chapter_01_Introduction_to_Accounting_and_Business.docx