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.
26. Which of these measurement attributes is not currently used in practice?
| a. | Historical cost |
| b. | Relevant cost |
| c. | Current market value |
| d. | Current cost |
| e. | Present value |
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: Knowledge
NOT: Time: 1 min.
27. The following data relate to Swift Company for the year ended December 31, 2012. Swift Company uses the accrual basis.
| Sales on credit | $250,000 |
| Cost of inventory sold on credit | 170,000 |
| Collections from customers | 220,000 |
| Purchase of inventory on credit | 150,000 |
| Payment for purchases | 140,000 |
| Selling expenses (accrual basis) | 40,000 |
| Payment for selling expenses | 45,000 |
Which of the following amounts represents income for Swift Company for the year ended December 31, 2012?
| a. | $60,000 |
| b. | $50,000 |
| c. | $40,000 |
| d. | $35,000 |
| e. | $30,000 |
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication