underlying GAAP.
106.
Award: 10.00 points
Which of the following is not an identified valuation technique in GAAP regarding fair value measurement?
Market approach
Cost approach
Cost-benefit approach
Income approach
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
107.
Award: 10.00 points
Disclosure notes to a company's financial statements:
Document the source of financial statement facts, like literary footnotes.
Are relatively unimportant facts that don't belong in the basic financial statements.
Are irrelevant facts that are immaterial in amount.
Are an integral part of a company's financial statements.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
108.
Award: 10.00 points
A cause-and-effect relationship is implicit in:
Realization.
The going concern assumption.
Historical cost.
Matching.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
109.
Award: 10.00 points
The full disclosure principle requires a balance between:
Relevance and cost-effectiveness.
Comparability and consistency.
Timeliness and predictive value.
Reliability and neutrality.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
110.
Award: 10.00 points
The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?
Advertising
Cost of goods sold
President's salary
Research and development
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
111.
Award: 10.00 points
Land was acquired in 2024 for a future building site at a cost of $40,700. The assessed valuation for tax purposes is $28,300, a qualified appraiser placed
its value at $48,100, and a recent firm offer for the land was for a cash payment of $45,900. The land should be reported in the financial statements at:
$48,100.
$45,900.
$40,700.
$28,300.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
112.
Award: 10.00 points
Land was acquired in 2024 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed
its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:
$27,000.
$48,000.
$46,000.
$40,000.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
113.
Award: 10.00 points
Revenue should not be recognized until:
The seller has transferred goods or services to a customer.
Contracts have been signed and payment has been received.
Work has been performed and customer has been billed.
Collection has been made and warrantees have expired.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
114.
Award: 10.00 points
Which of the following best demonstrates the full disclosure principle?
Disclosure notes to financial statements
The multi-step income statement
The auditors' report
The company's tax return
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
115.
Award: 10.00 points
Matching is a(n):
Valuation method.
Asset classification procedure.