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

TOP:   Traditional Assumptions of the Accounting Model             KEY:  Bloom's: Knowledge
NOT:  Time: 1 min.            
 
     2.   Many of our present financial statement figures would be misleading if it were not for the going concern assumption.
 
ANS:  T                    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.            
 
     3.   The going concern assumption does not influence the classification of assets and liabilities.
 
ANS:  F                    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.            
 
     4.   The most accurate way to account for the success or failure of an entity is to accumulate all transactions from the opening of business until the business eventually liquidates.
 
ANS:  T                    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.            
 
     5.   An entity usually cannot reasonably account for the profits related to inventory until that inventory is sold in the normal course of business.
 
ANS:  T                    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.            
 
     6.   To the extent that money does not remain stable, it loses its usefulness as the standard for measuring financial transactions.
 
ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication