Answer the multiple choices and one page required for each essay


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Oct 09, 2015. Answer the multiple choices and one page required for each essay question. If you use outside materials or quotes be sure to show them as a reference on page 8, along with the question number preceding the reference.  You will be graded on (1) how you answer the question and (2) your writing style. (APA Writing Style) Please only original work and no guessing; If you are unable to provide an accurate answer do not take the assignment. 1.  An item that is either unusual or infrequent (not both) is classified as a non-operating item in the “Other Gains/Losses” section of the income statement.  As this may be a nonrecurring item, it is possible that this may diminish the FASBs criterion of _________________________, presented in Statement of Financial Accounting Concept 8. A. timeliness B. predictive ability C. verifiability D. neutrality 2. To improve evaluating ROA when doing interfirm comparability, financial analysts have suggested eliminating _____________________________________________. A. interest expense after B. capital leases C. income tax expense D. stock option compensation 3. The rational investor is assumed to be risk averse.  Therefore, the riskier investment is expected to generate higher returns.  The _______________________ is an attempt to deal with both risks and returns. A. CAPM B. EMH C. HIP D. YCP 4. Which of the following is not a basic concept of income? A. psychic income B. real income C. money income D. gross income 5. The common stock issued by a corporation is measured by that corporation at its A. current value B. fair value C. historical cost (value) D. intrinsic value 6. One of the primary differences between IFRS and U.S. GAAP is that U.S. GAAP are considered A. principle based standards. B. required to be accepted by the accounting profession. C. rules based standards D. developed by the governments of the countries belonging to the IASB. 7. After the SEC was established, the first accounting organization to develop accounting standards was the A. CAP B. APB C. FASB D. AICPA 8. To be classified as a long-term liability, A. the obligation must be due within the coming year B. it must only be a financing activity C. it will not require the use of current assets within the current year D. may not be classified as a contingent liability 9. You are attempting to research if earnings management is actually occurring in large, publically traded corporations.  This type of research is A. normative accounting research B. positive accounting research C. critical perspective research D. human information processing research 10. Which of the following items would not be reported as part of other comprehensive income? A. excess of the additional pension liability over the unrecognized prior service cost B. unrealized holding gains on available-for-sale securities C. foreign currency translation adjustments D. unrealized holding losses on trading securities 11. Companies which have a simple capital structure are required to report A. diluted earnings per share B. basic earnings per share C. both basic and diluted earnings per share D. only diluted earnings per share if they have potentially dilutive securities. 12. Besides culture, various environmental factors can influence the development of accounting standards in a country.  Which of the following is typically not considered an environmental factor which can influence the development of accounting standards? A. political system B. legal system C. climate D. economic development 13. When the FASB needs a quick resolution to an accounting issue they may A. have the EITF address the issue B. request the SEC to address the issue C. issue a new accounting standard D. ask for guidance from the FAF 14. According to agency theory, the expenditures incurred by the agent are referred to as A. monitoring costs B. relevant costs C. conflict costs D. bonding costs 15. One of the major criticisms …

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