ACCT:3020 Financial Accounting and Reporting Midterm 1 Section 2: Financial Reporting & Disclosure

The SEC grants the authority to set U.S. accounting standards to which of the following organizations

a) GAAP

b) IASB

c) IFRS

d) FASB

e) None of these

FASB (Financial Accounting Standards Board)

According to accounting standard setters, which two of the following (circle two) are desireable characteristics of accounting information?

a) Timeliness

b) Conservatism

c) Verifiability

d) Creativity

Timeliness and Verifiability

Indicate which SEC filing discussed in class (e.g., 10K, etc.) is the best fit. A filing could be used more than once

Contains very detailed information about executive compensation

DEF 14-A (Proxy)

Indicate which SEC filing discussed in class (e.g., 10K, etc.) is the best fit. A filing could be used more than once

Receives more time and attention from auditors than any other disclosure

10-K

Indicate which SEC filing discussed in class (e.g., 10K, etc.) is the best fit. A filing could be used more than once

Is also called the statement of changes in beneficial ownership

Form 4

Indicate which SEC filing discussed in class (e.g., 10K, etc.) is the best fit. A filing could be used more than once

Is filed when a company issues a press release announcing revenues

8-K

Indicate which SEC filing discussed in class (e.g., 10K, etc.) is the best fit. A filing could be used more than once

Includes financial statements for a fiscal quarter

10-Q

Indicate (Yes/No) whether the following income statement items affects gross profit, operating profit, and income from continuing operations "for a typical retailer"

Revenue (example)

Gross profit, Operating Profit, Income from Continuing Operations

Indicate (Yes/No) whether the following income statement items affects gross profit, operating profit, and income from continuing operations "for a typical retailer"

SG&A expense

Operating Profit, Income from Continuing Operations

Indicate (Yes/No) whether the following income statement items affects gross profit, operating profit, and income from continuing operations "for a typical retailer"

Interest Expense

Income from Continuing Operations

Indicate (Yes/No) whether the following income statement items affects gross profit, operating profit, and income from continuing operations "for a typical retailer"

Discontinued Operations

Affects none