【正文】 1. According to the FASB and IASB conceptual frameworks, the primary users of financial reports include all of the following,except:a.Investors.b.Regulators.c.Lenders.d.Creditors.2. According to the FASB and IASB conceptual frameworks, useful information must exhibit the fundamental qualitative characteristics of:a.Comparability and materiality.b.Faithful representation and relevance.c.Understandability and timeliness.d.Neutrality and verifiability.3. What is the underlying concept governing the recording of gain contingencies?a.Consistency.b.Conservatism.c.Reliability.d.Relevance.4. According to the FASB conceptual framework, which of the following attributes wouldnotbe used to measure inventory?a.Historical cost.b.Net realizable value.c.Replacement cost.d.Present value of future cash flows.5. According to the FASB and IASB conceptual frameworks, the objective of general purpose financial reporting is to:a.Comply with the need for conservatism.b.Report on how effectively and efficiently management has used the entity39。s resources.c.Provide financial information that is useful to primary users.d.Comply with generally accepted accounting principles.6. According to the FASB and IASB conceptual frameworks, pleteness is an ingredient of:Relevance Faithful Representation a. Yes Yes b. No No c. No Yes d. Yes No7. What is the underlying concept that supports the immediate recognition of a contingent loss?a.Conservatism.b.Consistency.c.Matching.d.Substance over form.8. According to the FASB conceptual framework, the process of reporting an item in the financial statements of an entity is:a.Matching.b.Recognition.c.Allocation.d.Realization.9. The joint FASB and IASB conceptual framework project is intended to establish:a.A prehensive set of financial statement disclosures.b.A mon set of objectives and concepts for use in developing standards of financial accounting and reporting.c.The structure of the FASB CodificationTM.d.A mon set of generally accepted accounting principles.10. Financial information provided in general purpose financial reports doesnotinclude information about:a.The claims against the entity.b.The resources of the entity.c.How effectively and efficiently the entity39。s governing board has discharged its responsibility to use the entity39。s resources.d.How effectively and efficiently the entity39。s shareholders39。 have discharged their responsibility to use the entity39。s resources.11. On December 2, Year 1, Flint Corp.39。s board of directors voted to discontinue operations of its frozen food division and to sell the division39。s assets on the open market as soon as possible. The division reported net operating losses of $20,000 in December and $30,000 in January. On February 26, Year 2, sale of the division39。s assets resulted in a gain of $90,000. Assuming that the frozen foods division qualifies as a ponent of the business and ignoring ine taxes, what amount of gain/loss from discontinued operations should Flint recognize in its ine statement for Year 2?a.$0b.$90,000c.$40,000d.$60,00012. At December 31, Year 2, OffLine Co. changed its method of accounting for demo costs from writing off the costs over two years to expensing the costs immediately. OffLine made the change in recognition of an increasing number of demos placed with customers that did not result in sales. OffLine had deferred demo costs of $500,000 at December 31, Year 1, $300,000 of which were to be written off in Year 2 and the remainder in Year 3. OffLine39。s ine tax rate is 30%. In its Year 3 financial statements, what amount should OffLine report as cumulative effect of change in accounting principle?a.$200,000b.$350,000c.$0d.$500,00013. How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?a.By footnote disclosure only.b.By restating the financial statements of all prior periods presented.c.As a correction of an error.d.As a ponent of ine from continuing operations.14. In September, Koff Co.39。s operating plant was destroyed by an earthquake. Earthquakes are rare in the area in which the plant was located. The portion of the resultant loss not covered by insurance was $700,000.