14) The conceptual framework assists with A) the development of a set of standar

Question

14) The conceptual framework assists with A) the development of a set of standards which provide absolute answers for accounting questions B) the development of a set of standards for auditors to use when looking for material misstatements or fraud C) the development of a set of standards which ensure that financial reports meet the needs of investors and creditors D) All of the above 15) Which of the following statements is FALSE? A) Th IFRS is important for accountants working in the United States. B) Non-U.S. e accounting profession has determined that a working knowiedge of companies operate in the United States but prepare their C) The SEC is currently deliberating if IFRS will be required to be used by U.S. companies. D) The SEC does not permit the use of IFRS-based financial statements financial statements using IFRS. by international companies with shares trading on U.S. stock exchanges 16) Under U.S. GAAP, comprehensive income includes which of the following? A) Investments by Owners No Operating Income Yes Investments by Owners Yes Operating Income No C) rating Income Investments by Owners No No Investments by Owners Yes Operating Income Yes Anakwe-Intermediate I, Fall 2017 Final Exam SIPage

Explanation / Answer

14. The main purpose of the establishment of the conceptual framework is to assist those entrusted with setting standards to develop and revise accounting standards.Its intention is not to override or supercede any of the existing accounting standards That said,the conceptual framework ,assists with all A,B & C. So, ANSWER: D ) all of the above 15. ANSWER: D The SEC does permit the use of IFRS-based financial statements by international companies with shares trading on US stock exchanges 16. C Investment by Owners ---NO--- it is only the appreciation or depreciation in the fair value of the available for sale securities that are included under the heading Other Comprehensive Income (OCI) & not the entire investment) Operating Income- NO.(it is included in the retained earning section under stockholders' equity

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