Homework Answers
Answer
--Correct Answer = Option #4: The cost principle (or Historical Cost Concept) states that the assets are to be recorded at cost at which they were acquired.
--This means that in the Balance Sheet, the assets are to be shown at 'cost' reduced by the 'accumulated depreciation' if any on that asset.
--The change in market value of the asset will not have any effect on the value recorded of that asset as per the 'cost princile'.
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The cost principle says when in doubt, choose an accounting method that will least likely overstate...
Matching Question 175 Select the appropriate terms for the following statements. Weighs the cost of providing...
Matching Question 175 Select the appropriate terms for the following statements. Weighs the cost of providing information to financial statement users against the benefits to be derived. Report assets that are actively traded at their market price. 2. 3. Fair value principle Monetary unit assumption Information that has a bearing on a decision. Economic events can be identified with a particular unit of accountability. An item important enough to influence the decision of an investor or creditor. Same accounting principles...
Identify the accounting assumption or principle that is described below. Is the rationale for why plant...
Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) Indicates that personal and business record-keeping should be separately maintained. Assumes that the dollar is the measuring stick" used to report on financial performance. བྱི ི ི @ Separates financial information into time periods for reporting purposes. Measurement basis used when a reliable estimate of fair value is not...
Identify the accounting assumption or principle that is described below. : Is the rationale for why...
Identify the accounting assumption or principle that is described below. : Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) • • Indicates that personal and business record-keeping should be separately maintained. Assumes that the dollar is the measuring stick used to report on financial performance : Separates financial information into time periods for reporting purposes. • Measurement basis used when a reliable estimate of fair value is...
Answer for a-f Identify the accounting assumption or principle that is described below. Is the rationale...
Answer for a-f
Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) Historical Cost Principle Monetary Unit Assumption Periodicity Assumption Economic Entity AssumptionAssumes that the dollar is the "measuring stick" used to report on financial performance. Full Disclosure Principle Going Concern Assumption (b) Indicates that personal and business record-keeping should be separately maintained. (d) Separates financial information into...
Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or...
Identify the accounting assumption or principle that is
described below.
(a)
select the accounting assumption or principle
Going Concern AssumptionMonetary Unit AssumptionPeriodicity
AssumptionHistorical Cost PrincipleEconomic Entity AssumptionFull
Disclosure Principle
Is the rationale for why plant assets are not reported at
liquidation value. (Note: Do not use the historical cost
principle.)
(b)
select the accounting assumption or principle
Historical Cost PrincipleGoing Concern AssumptionEconomic Entity
AssumptionFull Disclosure PrincipleMonetary Unit
AssumptionPeriodicity Assumption
Indicates that personal and business record-keeping should be
separately maintained.
(c)...
Possible Answers: Match each term or phrase to its description below. Liquidity Whether an item is...
Possible Answers:
Match each term or phrase to its description below. Liquidity Whether an item is large enough to likely influence the decision of an investor or creditor. Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available. Obligations that a company expects to pay within the next year or operating cycle, whichever is longer. Information that is complete, neutral, and free from...
The options to select from are: Solvency Cost Constriant Faithful Representation Relevance Free Cash Flow Securities...
The options to select from are:
Solvency
Cost Constriant
Faithful Representation
Relevance
Free Cash Flow
Securities and Exchange Commission SEC
Current Liabilities
Liquidity
Verfiable
Working Capital
Generally accepted Accounting Principles GAAP
Materiality
Operating Cycle
Match each term or phrase to its description below. Whether an item is large enough to likely influence the decision of an investor or creditor. a ê Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement...
P2. Fill in the blanks below with the qualitative characteristic, accounting principle or assumption that best...
P2. Fill in the blanks below with the qualitative characteristic, accounting principle or assumption that best completes the sentence. (1) and that make accounting information useful for decision making. are the two fundamental qualities (2) Information that helps users confirm or correct prior expectations has (3) enables users to identify the real similarities and differences in economic events between companies. is the price that would be received to sell an asset or paid to transfer a liability in an orderly...
Choose the correct answer 1) When a change in accounting principle is reported, what is likely...
Choose the correct answer 1) When a change in accounting principle is reported, what is likely sacrificed? A.Relevance. B.Consistency. C.Conservatism. D.Representational faithfulness. 2)Which of the following changes should be accounted for using the retrospective approach? A. A change in the estimated life of a depreciable asset. B. A change from straight-line to declining balance depreciation. C. A change in policy increasing product warranty period from 1 year to 2 years for new products. D. A change from the completed-contract method...
Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards...
Match each item characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards with a description below. 1. select an option Going Concern AssumptionPeriodicity AssumptionMaterialityEconomic Entity AssumptionMonetary Unit AssumptionRelevanceCost ConstraintComparabilityFull Disclosure PrincipleHistorical Cost PrincipleConsistencyFaithful Representation Items not easily quantified in dollar terms are not reported in the financial statements. 2. select an option ...
Matching Question 175 Select the appropriate terms for the following statements. Weighs the cost of providing information to financial statement users against the benefits to be derived. Report assets that are actively traded at their market price. 2. 3. Fair value principle Monetary unit assumption Information that has a bearing on a decision. Economic events can be identified with a particular unit of accountability. An item important enough to influence the decision of an investor or creditor. Same accounting principles...
Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) Indicates that personal and business record-keeping should be separately maintained. Assumes that the dollar is the measuring stick" used to report on financial performance. བྱི ི ི @ Separates financial information into time periods for reporting purposes. Measurement basis used when a reliable estimate of fair value is not...
Identify the accounting assumption or principle that is described below. : Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) • • Indicates that personal and business record-keeping should be separately maintained. Assumes that the dollar is the measuring stick used to report on financial performance : Separates financial information into time periods for reporting purposes. • Measurement basis used when a reliable estimate of fair value is...
Answer for a-f
Identify the accounting assumption or principle that is described below. Is the rationale for why plant assets are not reported at liquidation value. (Note: Do not use the historical cost principle.) Historical Cost Principle Monetary Unit Assumption Periodicity Assumption Economic Entity AssumptionAssumes that the dollar is the "measuring stick" used to report on financial performance. Full Disclosure Principle Going Concern Assumption (b) Indicates that personal and business record-keeping should be separately maintained. (d) Separates financial information into...
Identify the accounting assumption or principle that is
described below.
(a)
select the accounting assumption or principle
Going Concern AssumptionMonetary Unit AssumptionPeriodicity
AssumptionHistorical Cost PrincipleEconomic Entity AssumptionFull
Disclosure Principle
Is the rationale for why plant assets are not reported at
liquidation value. (Note: Do not use the historical cost
principle.)
(b)
select the accounting assumption or principle
Historical Cost PrincipleGoing Concern AssumptionEconomic Entity
AssumptionFull Disclosure PrincipleMonetary Unit
AssumptionPeriodicity Assumption
Indicates that personal and business record-keeping should be
separately maintained.
(c)...
Possible Answers:
Match each term or phrase to its description below. Liquidity Whether an item is large enough to likely influence the decision of an investor or creditor. Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available. Obligations that a company expects to pay within the next year or operating cycle, whichever is longer. Information that is complete, neutral, and free from...
The options to select from are:
Solvency
Cost Constriant
Faithful Representation
Relevance
Free Cash Flow
Securities and Exchange Commission SEC
Current Liabilities
Liquidity
Verfiable
Working Capital
Generally accepted Accounting Principles GAAP
Materiality
Operating Cycle
Match each term or phrase to its description below. Whether an item is large enough to likely influence the decision of an investor or creditor. a ê Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement...
P2. Fill in the blanks below with the qualitative characteristic, accounting principle or assumption that best completes the sentence. (1) and that make accounting information useful for decision making. are the two fundamental qualities (2) Information that helps users confirm or correct prior expectations has (3) enables users to identify the real similarities and differences in economic events between companies. is the price that would be received to sell an asset or paid to transfer a liability in an orderly...
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