Question 1

Complete the following table - identify which fundamental characteristic and which attribute are indicated in each independent scenario.

Accepted Answer

The answer of Complete the following table - identify which...

Question 2

TLR Consulting keep their accounting records using the cash basis.During 2014,they collected $275,000 from clients.On December 31,2013 they had accounts receivable of $50,000 and on December 31,2014 they had accounts receivable of $35,000.Additionally,they had unearned revenues of $7,000.Using the accrual basis of accounting,what did TLR Consulting earn in service fees for 2014?

Accepted Answer

A) $253,000 
B) $267,000 
C) $283,000 
D) $297,000 
A) $253,000 
B) $267,000 
C) $283,000 
D) $297,000

Question 3

Currently the FASB and IASB have two separate conceptual frameworks which are partially converged.

Accepted Answer

A) True 
 B)False

Question 4

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

Accepted Answer

The answer of Identify the assumption represented in each scenario,the...

Question 5

Materiality cannot always be expressed quantitatively but sometimes requires judgment.

Accepted Answer

A) True 
 B)False

Question 6

When deciding how to measure fair value of an asset or liability,there is sometimes a trade-off between ________.

Accepted Answer

A) understandability and comparability 
B) faithful representation and neutrality 
C) verifiability and neutrality 
D) relevance and faithful representation 
A) understandability and comparability 
B) faithful representation and neutrality 
C) verifiability and neutrality 
D) relevance and faithful representation

Question 7

According to IFRS,period-of-time elements include income,expenses,performance,and transactions with owners.

Accepted Answer

A) True 
 B)False

Question 8

Shadow's Cleaning Service provides weekly cleaning services for $40 per week.In January,they collected payments from 50 customers for 3 months (12 weeks)of service each.For the month of February they will recognize ________ of revenue under the cash basis,and ________ under the accrual basis.

Accepted Answer

A) $0,$8,000 
B) $8,000,$8,000 
C) $8,000,$24,000 
D) $24,000,$8,000 
A) $0,$8,000 
B) $8,000,$8,000 
C) $8,000,$24,000 
D) $24,000,$8,000

Question 9

Which element of the financial statements results from peripheral or incidental transactions?

Accepted Answer

A) gains 
B) revenues 
C) equity 
D) liabilities 
A) gains 
B) revenues 
C) equity 
D) liabilities

Question 10

U.S.GAAP and IFRS set forth the same objective of financial reporting in their respective conceptual frameworks.

Accepted Answer

A) True 
 B)False

Question 11

What is the purpose of the conceptual framework?

Accepted Answer

The purpose of the conceptual

Question 12

Revenues are considered earned when a company exchanges a good or service for cash or claims for cash.

Accepted Answer

A) True 
 B)False

Question 13

Sydney & Caesar Law Firm uses the cash basis to keep their accounting records.During 2014,they collected $400,000 from clients.On December 31,2013 they had accounts receivable of $60,000.On December 31,2014 they had accounts receivable of $80,000 and unearned revenue of $15,000.Using the accrual basis,how much is Sydney & Caesar Law Firm's service revenue for 2014?

Accepted Answer

A) $340,000 
B) $395,000 
C) $405,000 
D) $420,000 
A) $340,000 
B) $395,000 
C) $405,000 
D) $420,000

Question 14

U.S.GAAP and IFRS identify the same three point-in-time elements.

Accepted Answer

A) True 
 B)False

Question 15

________ accounting measures noncash transactions.

Accepted Answer

A) Accrual 
B) Cash-basis 
C) Cloud 
D) Historic 
A) Accrual 
B) Cash-basis 
C) Cloud 
D) Historic

Question 16

The FASB has taken the conceptual framework to a higher level than the IASB.

Accepted Answer

A) True 
 B)False

Question 17

Under U.S.GAAP,it would need to be disclosed that Smith Company is under investigation for bribery charges because of ________.

Accepted Answer

A) materiality 
B) the cost constraint 
C) timeliness 
D) reliability 
A) materiality 
B) the cost constraint 
C) timeliness 
D) reliability

Question 18

Like U.S.GAAP,IFRS directly addresses the going concern concept.

Accepted Answer

A) True 
 B)False

Question 19

The going concern concept justifies accounting practices such as depreciation.

Accepted Answer

A) True 
 B)False

Question 20

U.S.GAAP identifies ________ measurement bases used in financial reporting and IFRS identifies ________.

Accepted Answer

A) three,four 
B) four,five 
C) five,four 
D) four,three 
A) three,four 
B) four,five 
C) five,four 
D) four,three

Complete the following table - identify which fundamental characteristic and which attribute are indicated in each independent scenario.

Currently the FASB and IASB have two separate conceptual frameworks which are partially converged.

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

Materiality cannot always be expressed quantitatively but sometimes requires judgment.

When deciding how to measure fair value of an asset or liability,there is sometimes a trade-off between ________.

According to IFRS,period-of-time elements include income,expenses,performance,and transactions with owners.

Shadow's Cleaning Service provides weekly cleaning services for $40 per week.In January,they collected payments from 50 customers for 3 months (12 weeks)of service each.For the month of February they will recognize of revenue under the cash basis,and under the accrual basis.

Which element of the financial statements results from peripheral or incidental transactions?

U.S.GAAP and IFRS set forth the same objective of financial reporting in their respective conceptual frameworks.

What is the purpose of the conceptual framework?

Revenues are considered earned when a company exchanges a good or service for cash or claims for cash.

U.S.GAAP and IFRS identify the same three point-in-time elements.

________ accounting measures noncash transactions.

The FASB has taken the conceptual framework to a higher level than the IASB.

Under U.S.GAAP,it would need to be disclosed that Smith Company is under investigation for bribery charges because of ________.

Like U.S.GAAP,IFRS directly addresses the going concern concept.

The going concern concept justifies accounting practices such as depreciation.

U.S.GAAP identifies measurement bases used in financial reporting and IFRS identifies .

The Financial Reporting Environment

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 2: Financial Reporting Theory

Complete the following table - identify which fundamental characteristic and which attribute are indicated in each independent scenario.

Currently the FASB and IASB have two separate conceptual frameworks which are partially converged.

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

Materiality cannot always be expressed quantitatively but sometimes requires judgment.

When deciding how to measure fair value of an asset or liability,there is sometimes a trade-off between ________.

According to IFRS,period-of-time elements include income,expenses,performance,and transactions with owners.

Shadow's Cleaning Service provides weekly cleaning services for $40 per week.In January,they collected payments from 50 customers for 3 months (12 weeks)of service each.For the month of February they will recognize ________ of revenue under the cash basis,and ________ under the accrual basis.

Which element of the financial statements results from peripheral or incidental transactions?

U.S.GAAP and IFRS set forth the same objective of financial reporting in their respective conceptual frameworks.

What is the purpose of the conceptual framework?

Revenues are considered earned when a company exchanges a good or service for cash or claims for cash.

U.S.GAAP and IFRS identify the same three point-in-time elements.

________ accounting measures noncash transactions.

The FASB has taken the conceptual framework to a higher level than the IASB.

Under U.S.GAAP,it would need to be disclosed that Smith Company is under investigation for bribery charges because of ________.

Like U.S.GAAP,IFRS directly addresses the going concern concept.

The going concern concept justifies accounting practices such as depreciation.

U.S.GAAP identifies ________ measurement bases used in financial reporting and IFRS identifies ________.

The Financial Reporting Environment

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Shadow's Cleaning Service provides weekly cleaning services for $40 per week.In January,they collected payments from 50 customers for 3 months (12 weeks)of service each.For the month of February they will recognize of revenue under the cash basis,and under the accrual basis.

U.S.GAAP identifies measurement bases used in financial reporting and IFRS identifies .