Exam 6: Financing Activities

Quality accounting information seeks to maximize relevance and economic faithfulness, subject to the constraints of the ____________________ of the measurements.

One of the conditions that must be met to recognize an estimated loss from a contingency is that the amount of loss can be estimated with ________________________________________.

A company may try to paint a favorable picture of itself by accelerating the timing of revenues or estimating the collectible amounts too aggressively. In these cases the quality of accounting information declines because it does not represent the company's true economic condition and may not be sustainable. List four conditions which might suggest that a company is recognizing revenues too early?

The _________________________ is the date on which a firm commits itself to a formal plan to dispose of a business segment.

Many times an analyst will have to make judgments as to whether to include unrealized gains and losses when assessing earnings persistence and predicting future profitability. Discuss the case for and the case against including unrealized gains and losses as part of sustainable earnings when examining earnings persistence and future profitability.

Many users of financial statements believe that the quality of accounting information for intangible assets is low because firms seldom report intangible asset resources on the balance sheet. However, from the perspective of accounting quality what are arguments in favor of expensing most intangibles and not recording them on the balance sheet?

All of the following are typically recognized as accounting liabilities except :

Which of the following items is consistent with earnings being informative about current performance and informing the analyst that level of current earnings is sustainable?

How is a disposal of a segment of the business reported?

When evaluating the quality of accounting information, an analyst should consider all of the following except :