Social Science Questions

Liquid investments not classified as cash equivalents

The enhancing qualitative characteristic of understand ability means that information should be understood by

The possibility that the capital markets' focus on periodic profits may tempt a company's management to bend or even break accounting rules to inflate reported net income is an example of:(a) an accounting theory issue(b) a technical accounting issue(c) an ethical dilemma(d) non of the above is correct

Not a qualitative characteristic, but a practical justification for some accounting choices.

Information that could affect decision making should be reported.

The most important objective for financial reporting is to provide information useful for:(a) increasing future profits(b) determining taxable income(c) providing accountability(d) making decisions

The basis for measurement of many assets and liabilities.

All economic events can be identified with a particular entity.

Ace Appliance Company is involved in a major lawsuit involving injuries sustained by some of its employees in the manufacturing plant. The company is being sued for $2,000,000, a material amount, and is not insured. The suit was not disclosed in the most recent financial statements because no settlement had been reached.

Pastel Paint Company purchased land two years ago at a price of $250,000. Because the value of the land has appreciated to $400,000, the company has valued the land at $400,000 in its most recent balance sheet.

Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense.

Atwell Corporation has not prepared financial statements for external users for over three years.

Maltec Corporation has started placing its quarterly financial statements on its web page, thereby reducing by 10 days the time to get information to investors and creditors. The qualitative concept improved is:

The Klingon Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was received.

Astro Turf Company recognizes an expense, cost of goods sold, in the period the product is manufactured.

Philips Company pays the monthly mortgage on the home of its president, Larry Crosswhite, and charges the expenditure to miscellaneous expense.

Internal users of accounting information

Cloud Drug Company owns a patent that it purchased three years ago for $2 million. The controller recently revalued the patent to its approximate market value of $8 million.

Golden Book Company purchased a large printing machine for $1,000,000 (a material amount) and recorded the purchase as an expense.

Méthodologie utilisées dans la comparaison transculturelle