Chapter 14 – Accounting Principles and Reporting Standards
Chapter 14
Accounting Principles and Reporting Standards
1. The Financial Accounting Standards Board is an agency of the federal government.
2. Because financial statements must be objective and based on verifiable evidence, data
obtained from estimates cannot be presented.
3. The concepts of objectivity and verifiability eliminate subjective decisions.
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© 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
16. The SEC has authority to define accounting terms and to prescribe accounting procedures
used by all ____________________ held corporations.
17. Financial accounting rules affect the recording of data used to prepare financial reports
that go to ____________________ and creditors.
18. Financial information is said to be ____________________ if it can be reviewed by
accountants outside the company, and these accountants arrive at the same conclusions as the
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© 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
31. In order to ensure that they are meaningful and useful, financial statements should be
prepared
32. Which of the following statements is not correct?
