with Complete Solutions
which of the following statements is true regarding impairment losses on intangible assets in
use? Correct Ans-if the asset fails the receivables test, the impairment loss is the amount by
which the carrying value exceeds the fair value
How significant is the amount consignment inventory reported in the balance sheet? Correct
Ans-the inventory is included in the consignor's inventory and then separately disclosed in the
notes to the financial statements
held-to-matuirty securities are reported at... Correct Ans-amortized cost
a cash equivalent is a short term, highly liquid investment that is readily conertiable into known
amounts of cash and... Correct Ans-its so near its maturity that there is an insignificant risk of
changes in interest rate
which of the following is not reported aspart of income from continuing operations? Correct
Ans-goodwill
postage stamps are classified as... Correct Ans-office supplies
the term "depreciation base or depreciable base" as it is used in accounting refers to... Correct
Ans-the total amount to be charged (DEBIT) TO EXPENSE OVER AN ASSETs useful life
, trade discounts are... Correct Ans-used to avoid frequent changes in catalogs
use of the double-declining balance method Correct Ans-all choices are correct
Lamar Printing Company determines that a printing press used in its operations has suffered a
permanent impairment in value because of technological changes. An entry to record the
impairment should Correct Ans-include a credit to the equipment accumulated depreciation
account
all of the following may be included under the reading of "cash" except... Correct Ans-money
market funds
which of the following intangible assets should be are reported as separate item on the balance
sheet? Correct Ans-goodwill
when a company has cash available in an other account int he same bank at which and overdraft
has occurred, the company will: Correct Ans-offset the overdraft against the cash account
balance
under current accounting practice, intangible assets are classified as... Correct Ans-limited life
OR indefinite life