D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
198) The revenue recognition principle:
A) Prescribes that accounting information is based on actual cost.
B) Provides guidance on when a company must recognize revenue.
C) Prescribes that a company report the details behind financial statements that would impact users' decisions.
D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
199) The full disclosure principle:
A) Prescribes that accounting information is based on actual cost.
B) Provides guidance on when a company must recognize revenue.
C) Prescribes that a company report the details behind financial statements that would impact users' decisions.
D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
200) The materiality constraint:
A) Prescribes that accounting information is based on actual cost.
B) Provides guidance on when a company must recognize revenue.
C) Prescribes that only information that would influence the decisions of a reasonable person need be disclosed.
D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
201) The going concern assumption:
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Means that we can express transactions and events in monetary, or money, units.
C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
D) Means that a business is accounted for separately from other business entities, including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.
202) The monetary unit assumption:
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Means that we can express transactions and events in monetary, or money, units.
C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
D) Means that a business is accounted for separately from other business entities, including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.
203) The time period assumption:
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Means that we can express transactions and events in monetary, or money, units.
C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
D) Means that a business is accounted for separately from other business entities, including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.
204) The business entity assumption:
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B) Means that we can express transactions and events in monetary, or money, units.
C) Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
D) Means that a business is accounted for separately from other business entities, including its owner.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.
205) Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (or Dodd-Frank). Which of the following are two of the important provisions of Dodd-Frank?
A) Clawback and dividend mandate.
B) Clawback and whistleblower.
C) Whistleblower and dividend mandate.
D) Dividend mandate and shareholder loss limitation.
E) Whistleblower and shareholder loss limitation.
206) Clawback provisions and whistleblower provisions are components of which legislation?