©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM
Financial Accounting Exam 1 Questions
With Correct Answers
Cost - answer✔The cost principle requires that when assets are acquired, they be recorded at
___________
the same on the date of acquisition - answer✔The cost of an asset and its fair value are
physical laws of nature - answer✔The body of theory underlying accounting is not based on
convergence - answer✔In order to increase comparability, in recent years, the FASB and IASB
have made efforts to reduce the differences between U.S.GAAP and IFRS through a process
known as
cost principle - answer✔Martin Corporation purchased land in 2007 for $290,000. In 2013, it
purchased a nearly identical parcel of land for $460,000. In its 2013 balance sheet, Martin valued
these two parcels of land at a combined value of $920,000. By reporting the land in this manner,
Martin Corp. has violated the
transaction - answer✔Accountants refer to an economic event as a
12/3/2024 11:27AM
Financial Accounting Exam 1 Questions
With Correct Answers
Cost - answer✔The cost principle requires that when assets are acquired, they be recorded at
___________
the same on the date of acquisition - answer✔The cost of an asset and its fair value are
physical laws of nature - answer✔The body of theory underlying accounting is not based on
convergence - answer✔In order to increase comparability, in recent years, the FASB and IASB
have made efforts to reduce the differences between U.S.GAAP and IFRS through a process
known as
cost principle - answer✔Martin Corporation purchased land in 2007 for $290,000. In 2013, it
purchased a nearly identical parcel of land for $460,000. In its 2013 balance sheet, Martin valued
these two parcels of land at a combined value of $920,000. By reporting the land in this manner,
Martin Corp. has violated the
transaction - answer✔Accountants refer to an economic event as a
