ACC 421 MART Education Terms/acc421mart.com ACC 421 MART Education Terms/acc421mart.com | Page 15

It is a violation of SEC regulations for publicly traded companies to
depart from GAAP.
16.
Under Statements of Financial Accounting Concepts,
comprehensive income includes which of the following?
17.
Which of the following is an application of the principle of
systematic and rational allocation?
18.
What group currently writes the Generally Accepted
Accounting Principles?
19.

The information provided by financial reporting pertains to

Individual business enterprises, rather than to industries or an
economy as a whole or to members of society as consumers.
20.
According to the FASB Conceptual Framework, what does the
concept of faithful representation in financial reporting include?
21.
Which of the following accounting pronouncements is the most
authoritative?
22.
According to the FASB Conceptual Framework, which of the
following relates to both relevance and faithful representation?
23.
On July 1, 2003, Roxy Co. obtained fire insurance for a threeyear period at an annual premium of $72,000 payable on July 1 of
each year.
The first premium payment was made July 1, 2003. On October 1,
2003, Roxy paid $24,000 for real estate taxes to cover the period
ending September 30, 2004. This prepayment was made to obtain a
discount.
24.
Young & Jamison's modified cash-basis financial statements
indicate cash paid for operating expenses of $150,000, end-of-year