The accounting cycle? Help please?

Please help with financial Accounting question.?

• Indicate whether each of the following statements is true or false. (a) ________ “Generally accepted” means that these principles must have “substantial authoritative support.” (b) ________ GAAP is a set of rules and practices established by the accounting profession to serve as a general guide for financial reporting purposes. (c) ________ Substantial authoritative support for GAAP usually comes from two standard-setting bodies: the FASB and the IRS. BE15-2 Indicate which of the following items is(are) included in the FASB’s conceptual framework. (Use “Yes” or “No” to answer this question.) (a) ________ Qualitative characteristics of accounting information. (b) ________ Analysis of financial statement ratios. (c) ________ Objective of financial reporting. BE15-3 According to the FASB’s conceptual framework, which of the following are part of the objective of financial reporting? (Use “Yes” or “No” to answer this question.) (a) ________ Provide information that identifies the economic resources (assets), the claims to those resources (liabilities), and the changes in those resources and claims. (b) ________ Provide information that is helpful in assessing past cash flows and stock prices. (c) ________ Provide information that is useful to those making investment and credit decisions. BE15-5 Given the qualitative characteristics of accounting established by the FASB’s conceptual framework, complete each of the following statements. (a) ________ is the quality of information that gives assurance that it is not biased; it can be depended on. (b) ________ means using the same accounting principles and methods from year to year within a company. (c) For information to be ________, it should have predictive or confirmatory value, or both. BE15-6 Presented below is a set of qualitative characteristics of accounting information. 1. Free from error 3. Predictive value 2. Comparability 4. Neutral Match these qualitative characteristics to the following statements, using the numbers above. (a) ________ Accounting information should help users make predictions about the outcome of future events. (b) ________ Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another. (c) ________ Accounting information must state the information correctly. (d) ________ Accounting information is more useful when different companies use the same accounting principles. BE15-7 Presented below are four concepts discussed in this chapter. 1. Time period assumption 3. Full disclosure principle 2. Cost principle 4. Revenue recognition principle Match these concepts to the following accounting practices. Each number can be used only once. (a) ________ Recording inventory at its purchase price. (b) ________ Using notes and supplementary schedules in the financial statements. (c) ________ Preparing financial statements on an annual basis. (d) ________ Record revenue when earned.

• Answer:

  Indicate whether each of the following statements is true or false. (a) True “Generally accepted” means that these principles must have “substantial authoritative support.” (b) True GAAP is a set of rules and practices established by the accounting profession to serve as a general guide for financial reporting purposes. (c) False. Substantial authoritative support for GAAP usually comes from two standard-setting bodies: the FASB and the IRS. (it's the FASB and the SEC) BE15-2 Indicate which of the following items is(are) included in the FASB’s conceptual framework. (Use “Yes” or “No” to answer this question.) (a) Yes Qualitative characteristics of accounting information. (b) No Analysis of financial statement ratios. (c) Yes Objective of financial reporting. BE15-3 According to the FASB’s conceptual framework, which of the following are part of the objective of financial reporting? (Use “Yes” or “No” to answer this question.) (a) Yes Provide information that identifies the economic resources (assets), the claims to those resources (liabilities), and the changes in those resources and claims. (b) No Provide information that is helpful in assessing past cash flows and stock prices. (c) Yes Provide information that is useful to those making investment and credit decisions. BE15-5 Given the qualitative characteristics of accounting established by the FASB’s conceptual framework, complete each of the following statements. (a) Faithful representation is the quality of information that gives assurance that it is not biased; it can be depended on. (b) Consistency means using the same accounting principles and methods from year to year within a company. (c) For information to be relevant it should have predictive or confirmatory value, or both. BE15-6 Presented below is a set of qualitative characteristics of accounting information. 1. Free from error 3. Predictive value 2. Comparability 4. Neutral Match these qualitative characteristics to the following statements, using the numbers above. (a) 3 Accounting information should help users make predictions about the outcome of future events. (b) 4 Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another. (c) 1 Accounting information must state the information correctly. (d) 2 Accounting information is more useful when different companies use the same accounting principles. BE15-7 Presented below are four concepts discussed in this chapter. 1. Time period assumption 3. Full disclosure principle 2. Cost principle 4. Revenue recognition principle Match these concepts to the following accounting practices. Each number can be used only once. (a) 2 Recording inventory at its purchase price. (b) 3 Using notes and supplementary schedules in the financial statements. (c) 1 Preparing financial statements on an annual basis. (d) 4 Record revenue when earned.