Accounting Multiple choices and One Page Essay Questions

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. timelinessB. predictive abilityC. verifiabilityD. neutrality2. To improve evaluating ROA when doing interfirm comparability, financial analysts have suggested eliminating _____________________________________________.A. interest expense afterB. capital leasesC. income tax expenseD. stock option compensation3. 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. CAPMB. EMHC. HIPD. YCP4. Which of the following is not a basic concept of income?A. psychic incomeB. real incomeC. money incomeD. gross income5. The common stock issued by a corporation is measured by that corporation at itsA. current valueB. fair valueC. historical cost (value)D. intrinsic value6. One of the primary differences between IFRS and U.S. GAAP is that U.S. GAAP are consideredA. 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 theA. CAPB. APBC. FASBD. AICPA8. 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 activityC. it will not require the use of current assets within the current year D. may not be classified as a contingent liability9. You are attempting to research if earnings management is actually occurring in large, publically traded corporations. This type of research isA. normative accounting researchB. positive accounting research C. critical perspective researchD. human information processing research10. 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 costB. unrealized holding gains on available-for-sale securitiesC. foreign currency translation adjustmentsD. unrealized holding losses on trading securities11. Companies which have a simple capital structure are required to reportA. diluted earnings per shareB. basic earnings per shareC. both basic and diluted earnings per shareD. 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 systemB. legal systemC. climateD. economic development13. When the FASB needs a quick resolution to an accounting issue they mayA. have the EITF address the issueB. request the SEC to address the issueC. issue a new accounting standardD. ask for guidance from the FAF14. According to agency theory, the expenditures incurred by the agent are referred to asA. monitoring costsB. relevant costsC. conflict costsD. bonding costs15. One of the major criticisms that came from the committee members of SATTA was thatA. most of the accounting research from 1922 to 1962 was deductive in natureB. most of the accounting research during the period 1922 to 1962 used the neoclassical economic theory of the firmC. Both A and B above D. Neither A or B above16. The international accounting committee prior to the IASB was known as theA. IFRS FoundationB. IASCC. SACD. IOSCO17. A discontinued operation is a component of an entity that is an operating segmentA. which is classified as held for saleB. whose sale is considered both unusual and infrequentC. whose sale must be reported on the income statement after any extraordinary itemsD. which the company may sell18. Under the fair value hierarchy (SFAS No, 157), a publically traded stocks held as an investment would be classified asA. Level 1B. Level 2C. Level 3D. Level 4 19. Some of the major changes in accounting due to the Enron failure includeA. changing the way the FASB is fundedB. the passage of the Sarbanes-Oxley Act (SOX) in 2002C. the demise of the public accounting firm Arthur AndersenD. All of the above, A, B, and C are correct20. Under SFAS 157, the definition of fair value is based on A. a subjective measurementB. the recommended amount by the auditing firmC. the entrance priceD. the exist price Essay Questions: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.On July 13, 2012 the SEC issued their Final Staff Report in which they stated they are not yet ready to decide on whether or not the U.S. should convert to IFRS. Discuss the pros and cons of the U.S. adopting IFRS anddoing away with current U.S. GAAP. The SEC Final Staff Report on IFRS is on Blackboard under Course Content. (One Page Required) Discuss the current operating performance concept of income and the all-inclusive concept of income. Is comprehensive income consistent with either of the two? Discuss why or why not.(One Page Required)