Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank
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: Knowledge
NOT: Time: 1 min.
10. Valuing inventory at the lower of cost or market is an application of the:
a.
time period assumption.
b.
realization principle.
c.
going concern principle.
d.
conservatism principle.
e.
None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
11. The realization principle leads accountants to usually recognize revenue at:
a.
the end of production.
b.
during production.
c.
the receipt of cash.
d.
the point of sale.
e.
None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
12. The comment that "items that are not material may be recorded in the financial statements in the most economical and expedient manner possible" is representative of:
a.
matching.
b.
conservatism.
c.
realization.
d.
materiality.
e.
None of the answers are correct.
ANS: D PTS: 1 DIF: Difficulty: Easy
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: 1 min.
13. The assumption that deals with when to recognize the costs that are associated with the revenue that is being recognized is:
a.
matching.
b.
going concern.
c.
consistency.
d.
materiality.
e.
None of the answers are correct.
ANS: A PTS: 1 DIF: Difficulty: Easy