Question Details

Which of the following is an illustration of the classification issue




	1.	A purchase is recognized in the accounting records when
a.	payment is made for the item purchased.
b.	the purchase requisition is sent to the purchasing department.
c.	title transfers from the seller to the buyer.
d.	the buyer receives the seller's bill.



	2.	Which of the following is not a measurement issue in accounting?
a.	When to record a business transaction
b.	How to classify the items of a business transaction
c.	What value to place on a business transaction
d.	Where to record a business transaction



	3.	Which of the following is an illustration of the classification issue?
a.	At what amount should an old machine be shown on the balance sheet?
b.	At what point should the purchase of art supplies be recorded?
c.	Should tools be recorded as an asset or as an expense?
d.	At what point should a bill be paid for the purchase of an item?



	4.	The issue of deciding when to record a transaction is solved by
a.	properly classifying the transaction.
b.	deciding on a point of recognition.
c.	assigning historical cost to the transaction.
d.	analyzing the intent of management.



	5.	Which of the following is not a measurement issue in accounting?
a.	Valuation
b.	Recognition
c.	Evaluation
d.	Classification




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