Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank

STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Comprehension
NOT:  Time: 15 min.          
 
   11.   ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate 
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Comprehension
NOT:  Time: 15 min.          
 
   12.   ANS:  A                   PTS:   1                    DIF:    Difficulty: Moderate 
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Comprehension
NOT:  Time: 15 min.          
 
Listed below are interrelated elements that are directly related to measuring performance and status of an enterprise according to SFAC No. 6, "Elements of Financial Statements."
 
Required:
Match the letter of each element with the appropriate definition.
 
a.
Assets

b.
Liabilities

c.
Equity

d.
Investments by owners

e.
Distribution to owners

f.
Comprehensive income

g.
Revenues

h.
Expenses

i.
Gains

j.
Losses

 
 
   13.   Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
 
   14.   Increases in the equity of a particular business enterprise resulting from transfers to the enterprise from other entities of something of value to obtain or increase ownership interests (or equity) in it.
 
   15.   A decrease in the equity of a particular business enterprise resulting from transferring assets, rendering services, or incurring liabilities by the enterprise to owners. Decreases ownership interest (or equity) in an enterprise.
 
   16.   Decreases in the equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period, except those that result from expenses or distributions to owners.
 
   17.   Outflows or other consumption or using up of assets or incurrences of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations.
 
   18.   The change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners.
 
   19.   Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
 
   20.   The residual interest in the assets of an entity after deducting its liabilities.
 
   21.   Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or engaging in other activities that constitute the entity's ongoing major or central operations.