MULTIPLE CHOICE
1.Which of the following is a true statement?
a.Disclosure is concerned with information in the financial statements as well as information in the footnotes, management’s discussion and analysis, financial and operating forecasts, and other supplementary communications.
b.Disclosure is concerned with information in the financial statements only.
c.Disclosure is concerned with information in the footnotes only.
d.Disclosure is concerned with information in the financial statements and all supplementary communications except financial and operating forecasts.
2.SFAC No. 5 defines disclosure as:
a.Presentation of information in the financial statements
b.Presentation of information by means other than recognition in the financial statements
c.Recognition of information in the financial statements of footnotes
d.Presentation of information in any source available
3.Protective disclosure and informative disclosure are two types of disclosure as interpreted by the:
a.FTC
b.FASB
c.AICPA
d.SEC
4.The system of disclosure largely in effect today is called:
a.Selective disclosure
b.Conventional disclosure
c.Differential disclosure
d.Standard disclosure
5.The 10-K report filed annually with the SEC is basically aimed toward which of the following groups?
a.Shareholders
b.Professional financial analysts
c.Management
d.All of the above
6.Which of the following describes information overload?
a.The inability of preparers to process and adequately report all the information that should be provided in financial reports
b.The inability of auditors to process and adequately attest to all the information that should be provided in financial reports
c.The inability of users to process and intelligently use all the information provided in financial reports
d.The inability of preparers, auditors, and users to process and adequately utilize all the information provided in financial reports
7.In attempting to increase the importance of financial reporting the Jenkins Committee has placed the most emphasis on which of the following areas?
a.Predictive uses
b.Accountability
c.Comparability
d.Consistency
8.The vehicle used by the Jenkins Committee for improving financial reporting is largely in which of the following areas?
a.Educating financial statement users
b.Improved and additional disclosures
c.Changing the format of the financial statements
d.Accountability of auditors
9.Users questioned by the Jenkins Committee indicated that the single most important purpose the committee could accomplish was increasing the usefulness of:
a.Pension disclosures
b.Income tax disclosures
c.Segmental disclosures
d.Comprehensive income disclosures
10.Which of the following represents the principal theoretical issue underlying quarterly data?
a.Whether an interim period should be viewed as a separate period standing on its own
b.Whether an interim period report should include balance sheet and cash flow statements
c.Whether quarterly earnings should be disaggregated by segments in terms of revenues, profit or loss, and segment assets.
d.Whether interim reports should include income statement data and basic and fully diluted earnings per share numbers.
11.Which of the following is a recommendation of the Jenkins Committee?
a.That the cash flow statement not be separated between core and non-core activities
b.The retention of historical cost
c.Forecasted financial statements
d.Eliminating the pooling method of accounting for business combinations
12.Viewing each interim period as a separate period standing on its own is called:
a.The integral view
b.The disjointed view
c.The discrete view
d.The linked view
13.Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?
a.The integral view
b.Disjointed view
c.The discrete view
d.The linked view
14.From a theoretical standpoint, which of the following represents the approach to interim reporting with the most validity?
a.The integral view
b.Disjointed view
c.The discrete view
d.The linked view