,ditional Valuation Issues
9. Acquisition and Disposition of Property, Plant, and Equipment
10. Depreciation, Impairments, and Depletion
11. Intangible Assets
12. Current Liabilities and Contingencies
13. Long-Term Liabilities
14. Stockholders’ Equity
,✔
✔B
✔
✔B
✔
✔
✔D
✔
’ Answer: ✔ A
;’ ;’
represents the rules and standards used in financial reporting in the U.S.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
, ’ Relevance and faithful representation are components of:
;’ ;’ ;’ ;’ ;’ ;’
Enhancing qualitative characteristics
’ ;’ ;’
Fundamental qualitative characteristics ✔
’ ;’ ;’ ;’
Cost-benefit constraints
’ ;’
Conservatism
’
’ Answer: ✔ B ;’ ;’
and faithful representation ensure financial information is useful and reliable.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ Materiality is: ;’
A fundamental qualitative characteristic
’ ;’ ;’ ;’
An accounting constraint ✔
’ ;’ ;’ ;’
Synonymous with conservatism
’ ;’ ;’
Not applicable
’ ;’
’ Answer: ✔ B ;’ ;’
determines whether an item is significant enough to influence decisions.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ The going concern assumption implies that:
;’ ;’ ;’ ;’ ;’
The company will continue operating in the foreseeable future ✔
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
Assets should be valued at liquidation value
’ ;’ ;’ ;’ ;’ ;’ ;’
Only cash transactions are recorded
’ ;’ ;’ ;’ ;’
Financial statements are optional
’ ;’ ;’ ;’
’ Answer: ✔ A ;’ ;’
concern supports accrual accounting and deferral of revenue and expense recognition.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ Accrual accounting recognizes revenues when: ;’ ;’ ;’ ;’
9. Acquisition and Disposition of Property, Plant, and Equipment
10. Depreciation, Impairments, and Depletion
11. Intangible Assets
12. Current Liabilities and Contingencies
13. Long-Term Liabilities
14. Stockholders’ Equity
,✔
✔B
✔
✔B
✔
✔
✔D
✔
’ Answer: ✔ A
;’ ;’
represents the rules and standards used in financial reporting in the U.S.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
, ’ Relevance and faithful representation are components of:
;’ ;’ ;’ ;’ ;’ ;’
Enhancing qualitative characteristics
’ ;’ ;’
Fundamental qualitative characteristics ✔
’ ;’ ;’ ;’
Cost-benefit constraints
’ ;’
Conservatism
’
’ Answer: ✔ B ;’ ;’
and faithful representation ensure financial information is useful and reliable.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ Materiality is: ;’
A fundamental qualitative characteristic
’ ;’ ;’ ;’
An accounting constraint ✔
’ ;’ ;’ ;’
Synonymous with conservatism
’ ;’ ;’
Not applicable
’ ;’
’ Answer: ✔ B ;’ ;’
determines whether an item is significant enough to influence decisions.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ The going concern assumption implies that:
;’ ;’ ;’ ;’ ;’
The company will continue operating in the foreseeable future ✔
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
Assets should be valued at liquidation value
’ ;’ ;’ ;’ ;’ ;’ ;’
Only cash transactions are recorded
’ ;’ ;’ ;’ ;’
Financial statements are optional
’ ;’ ;’ ;’
’ Answer: ✔ A ;’ ;’
concern supports accrual accounting and deferral of revenue and expense recognition.
’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’ ;’
’ Accrual accounting recognizes revenues when: ;’ ;’ ;’ ;’
