Recent Question

The basic assumptions of accounting used by the International Accounting Standards Board (IASB) 1. The basic assumptions of accounting used by the International Accounting Standards Board (IASB) include all of the following except: a. Going concern. b. Periodicity. c. Accrual basis. d. Materiality. 2. The basic assumptions of accounting used by the International Accounting Standards Board (IASB) include a. Neutrality. b. Periodicit ...

Other / Other 26 May 2016

Financial statements are prepared each year Ex. 1—Accounting concepts—identification. State the accounting assumption, principle, qualitative characteristic, or constraint that is most applicable in the following cases. 1. All payments less than $25 are expensed as incurred. (Do not use conservatism.) 2. The company employs the same inventory valuation method from period to period. 3. A patent is capitalized and amortized ...

Other / Other 26 May 2016

What defense can you build for cost as the basis for financial accounting Ex. 1—Cost principle. Cost as a basis of accounting for assets has been severely criticized. What defense can you build for cost as the basis for financial accounting ? Ex. 2—Matching concept. A concept is a group of related ideas. Matching could be considered a concept because it includes ideas related to both revenue recognition and expense recogn ...

Other / Other 26 May 2016

When should an expenditure be recorded as an asset rather than an expense 1. Recognition of expense related to amortization of an intangible asset illustrates which principle of accounting? a. Expense recognition. b. Full disclosure. c. Revenue recognition. d. Historical cost. 2. When should an expenditure be recorded as an asset rather than an expense ? a. Never. b. Always. c. If the amount is material. d. When future benefit e ...

Other / Other 26 May 2016

Which of the following ingredients of fundamental qualities is part of faithful representation 1. Company A issuing its annual financial reports within one month of the end of the year is an example of which enhancing quality of accounting information? a. Neutrality. b. Timeliness. c. Predictive value. d. Representational faithfulness. 2. What is the quality of information that enables users to better forecast future operations? ...

Other / Other 26 May 2016

The historical cost principle would be of limited usefulness if not for the going concern assumption TRUE OR FALSE: 1. An enhancing quality as described by the International Accounting Standards Board’s (IASB’s) Conceptual Framework is comparability. 2. Moon, Inc. applies different accounting treatments to similar events from period to period. Moon, Inc. is violating verifiability as described by the International Acco ...

Other / Other 26 May 2016

The conceptual framework for accounting has been discovered through empirical research TRUE OR FALSE: 1. The conceptual framework for accounting has been discovered through empirical research. 2. A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards. 3. The International Accounting Standards Board (IASB) uses a conceptual framework based on individual concepts ...

Other / Other 26 May 2016

What is the objective of financial reporting as indicated in the conceptual framework 1. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objective of financial reporting 2. The und ...

Other / Other 26 May 2016

Information that helps users confirm or correct prior expectations has 1. ________________________ and _______________________ are the two primary qualities that make accounting information useful for decision making. 2. Information that helps users confirm or correct prior expectations has _________________ ___________________. 3. ________________________ enables users to identify the real similarities and differences in econo ...

Other / Other 26 May 2016

The conceptual framework underlying U.S. GAAP is similar to that underlying IFRS TRUE OR FALSE: 1. The International Accounting Standards Board’s (IASB) rule for materiality is any item under 5% of net income is considered immaterial. 2. The International Accounting Standards Board’s (IASB) conceptual framework includes the concept of prudence or conservatism which means when in doubt, choose the solution that will be le ...

Other / Other 26 May 2016