Recent Question

Which of the following is not a time when revenue may be recognized 1. Valuing assets at their liquidation values rather than their cost is inconsistent with the a. periodicity assumption. b. matching principle. c. materiality constraint. d. historical cost principle. 2. Revenue is generally recognized when a sale occurs. This statement describes the a. consistency characteristic. b. matching principle. c. revenue recognition pri ...

Other / Other 26 May 2016

Which basic assumption is illustrated when a firm reports financial results on an annual basis 1. Issuance of common stock for cash affects which basic element of financial statements? a. Revenues. b. Losses. c. Liabilities. d. Equity. 2. The International Accounting Standards Board (IASB) defines five interrelated elements of financial statements. Which of the following is not one of those elements? a. Asset. b. Income. c. Equi ...

Other / Other 26 May 2016

Under International Financial Reporting Standards (IFRS) revenue may be recognized 1. The International Accounting Standards Board has given companies the option of using fair value to report all of the following except: a. Receivables b. Investments c. Financial liabilities d. All of the choices can be valued at fair value. 2. Under International Financial Reporting Standards (IFRS) revenue may be recognized a. At the point of sal ...

Other / Other 26 May 2016

What are the basic components of the conceptual framework Ex. 1—Accounting concepts—identification. Presented below are a number of accounting procedures and practices in Ramirez Corp. For each of these items, list the assumption, principle, qualitative characteristic, or constraint that is violated. 1. Because the company's income is low this year, a switch from accelerated depreciation to straight-line depreciation is ma ...

Other / Other 26 May 2016

Financial information does not demonstrate consistency when 1. Accounting information is considered to be relevant when it a. can be depended on to represent the economic conditions and events that it is intended to represent. b. is capable of making a difference in a decision. c. is understandable by reasonably informed users of accounting information. d. is verifiable and neutral. 2. The quality of information that gives assurance ...

Other / Other 26 May 2016

The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes supplementary information TRUE OR FALSE: 1. The IASB has issued a conceptual framework that is broadly consistent with that of the United States. 2. The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes supplementary information. 3. The International Accounting Standards Board’s ( ...

Other / Other 26 May 2016

Which of the following is not a benefit associated with the FASB Conceptual Framework Project 1. A soundly developed conceptual framework of concepts and objectives should a. increase financial statement users' understanding of and confidence in financial reporting. b. enhance comparability among companies' financial statements. c. allow new and emerging practical problems to be more quickly solved. d. all of these. 2. Which of th ...

Other / Other 26 May 2016

Parenthetical statement of financial position disclosure of the inventory method 1. ________________________ is the quality of information that lets reasonably informed users see the link between information contained in the financial statements and the decisions they make. 2. ____________________ occurs when independent measures using the same methods, obtain similar results. 3. Parenthetical statement of financial position discl ...

Other / Other 26 May 2016

In the International Accounting Standards Board’s (IASB’s) Conceptual Framework, an enhancing qualitative characteristic is predictive value. TRUE OR FALSE: 1. In the International Accounting Standards Board’s (IASB’s) Conceptual Framework, qualitative characteristics are considered either relevant or prudent. 2. In the International Accounting Standards Board’s (IASB’s) Conceptual Framework, ...

Other / Other 26 May 2016

Which of the following is not a basic element of financial statements 1. Enhancing qualities as described by the International Accounting Standards Board’s (IASB’s) Conceptual Framework, include all of the following except: a. Comparability. b. Neutrality. c. Understandability. d. Verifiability. 2. Erin Company applies the same accounting treatment to similar events from period to period. Erin Company is exhibiting ...

Other / Other 26 May 2016