Homework Answers
| Asset | Balance Sheet Valuation |
| a) Trade accounts receivable | Net realizable value |
| b) Land | Cost |
| c) Inventories | Lower of cost or market value |
| d) Trading securities | Fair value |
| e) Prepaid expenses | Cost less amount charged to expense |
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According to generally accepted accounting principle, what is the balance sheet valuation of each of the...
Under generally accepted accounting principles, the assets owned by a business are reported in the balance...
Under generally accepted accounting principles, the assets owned by a business are reported in the balance sheet at their historical cost. Identify and briefly explain two accounting principles other than the cost principle that supports the valuation of assets at cost in the balance sheet.
Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet....
Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet. 1. Common stock 2. Prepaid insurance 3. Natural resources 4. Property, plant, and equipment 5. Accounts receivable 6. Copyrights 7. Inventory 8. Long-term bonds payable 9. Land (in use) 10. Land (future plant site) 11. Patents 12. Equity investments (trading) 13. Accounts payable Options: Par value Current cost of replacement Amount payable when due, less unamortized discount or plus unamortized premium Amount payable when...
current Attempt in Progress Indicate for each balance sheet item listed below the usual valuation reported on the b...
current Attempt in Progress Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet 1. Common stock Par value 2. Prepaid insurance Current cost of replacement 3. Natural resources Amount payable when due, less unamortized discount or plus unamortized premium 4. Property, plant, and equipment 5. Accounts receivable 6. Copyrights 7. Inventory 8. Long-term bonds payable 9. Land (in use) 10. Land (future plant site) 11. Patents 12. Equity investments (trading) 13. Accounts payable...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles,...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles, follows (This problem requires knowledge of present value calculations. Refer to Appendix A.) P3-8 The differences between present value, book value, and liquidation value Liabilities and Shareholders' Equity Assets Cash Short-term investments Land Buildings and machinery Total assets $ 8,000 20,000 80,000 16,000 $124,000 $10,000 Current liabilities 14,000Long-term liabilities 20,000 Common stock 80,000 Retained earnings $124,000 Total liabilities and shareholders' equity
1. Current assets are presented in the balance sheet in A) ascending order of their balances....
1. Current assets are presented in the balance sheet in A) ascending order of their balances. B) descending order of their balances. C) order of their liquidity. D) reverse order of their liquidity. 2. Treasury stock should be reported as a(n) A) current asset. B) investment C) other asset. D) reduction of stockholders' equity. 3. The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in...
OPTIONS: Indicate for each balance sheet item listed below the usual valuation reported on the balance...
OPTIONS:
Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet. 1. Common stock 2. Prepaid insurance 3. Natural resources 4. Property, plant, and equipment 5. Accounts receivable 6. Copyrights 7. Inventory 8. Long-term bonds payable 9. Land (in use) 10. Land (future plant site) 11. Patents 12. Equity investments (trading) 13. Accounts payable Par value Current cost of replacement Amount payable when due, less unamortized discount or plus unamortized premium Amount payable when...
Balance Sheet Classifications The following are the typical classifications used in a balance sheet: a) Current...
Balance Sheet Classifications The following are the typical classifications used in a balance sheet: a) Current assets f) Current liabilities b) Investments g) Long-term liabilities c) Property, plant, and equipment h) Paid-in capital d) Intangible assets i) Retained earnings e) Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account (valuation account), place a minus sign before the chosen letter. 10. 1....
Slide 8 chapter 01: Accounting in Business Explain generally accepted accounting principles and d...
Slide 8 chapter 01: Accounting in Business Explain generally accepted accounting principles and define and apply several accounting principles Knowledge Check 03 Before we move on, quiz yourself to test your understanding Question 1 of 2 The private-sector organization that is primarily responsible for developing GAAP for use by all U.S. companies is the: O SEC O IASB O FASB O IFRS submit answer& continue Slide 9 chapter 01: Accounting in Business Explain generally accepted accounting principles and define and...
What does valuation mean in accounting? What is a valuation method as it pertains to an...
What does valuation mean in accounting? What is a valuation method as it pertains to an account? To what accounts do valuation apply? Identify and explain the two measurement principles per the FASB conceptual framework. Explore and come up with the correct valuation method for each of the following balance sheet line items. Moreover, why are these accounts reported on the balance sheet at these values? 1. Inventory 2. PPE 3. Intangible assets 4. Notes Payable, short-term 5. Bonds Payable,...
Which of the following statements regarding the concepts underlying the balance sheet are true? A company...
Which of the following statements regarding the concepts underlying the balance sheet are true? A company buys land for $5 million dollars in 1983. The land is now worth $15 million. The company should increase the book value of this asset on its balance sheet to reflect its current value. All events affecting the current value of a company are reported on the balance sheet. Under Generally Accepted Accounting Principles, assets are generally written down if the market value declines,...
current Attempt in Progress Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet 1. Common stock Par value 2. Prepaid insurance Current cost of replacement 3. Natural resources Amount payable when due, less unamortized discount or plus unamortized premium 4. Property, plant, and equipment 5. Accounts receivable 6. Copyrights 7. Inventory 8. Long-term bonds payable 9. Land (in use) 10. Land (future plant site) 11. Patents 12. Equity investments (trading) 13. Accounts payable...
The December 31, 2014 balance sheet of Myers and Myers, prepared under generally accepted accounting principles, follows (This problem requires knowledge of present value calculations. Refer to Appendix A.) P3-8 The differences between present value, book value, and liquidation value Liabilities and Shareholders' Equity Assets Cash Short-term investments Land Buildings and machinery Total assets $ 8,000 20,000 80,000 16,000 $124,000 $10,000 Current liabilities 14,000Long-term liabilities 20,000 Common stock 80,000 Retained earnings $124,000 Total liabilities and shareholders' equity
1. Current assets are presented in the balance sheet in A) ascending order of their balances. B) descending order of their balances. C) order of their liquidity. D) reverse order of their liquidity. 2. Treasury stock should be reported as a(n) A) current asset. B) investment C) other asset. D) reduction of stockholders' equity. 3. The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in...
OPTIONS:
Indicate for each balance sheet item listed below the usual valuation reported on the balance sheet. 1. Common stock 2. Prepaid insurance 3. Natural resources 4. Property, plant, and equipment 5. Accounts receivable 6. Copyrights 7. Inventory 8. Long-term bonds payable 9. Land (in use) 10. Land (future plant site) 11. Patents 12. Equity investments (trading) 13. Accounts payable Par value Current cost of replacement Amount payable when due, less unamortized discount or plus unamortized premium Amount payable when...
Balance Sheet Classifications The following are the typical classifications used in a balance sheet: a) Current assets f) Current liabilities b) Investments g) Long-term liabilities c) Property, plant, and equipment h) Paid-in capital d) Intangible assets i) Retained earnings e) Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account (valuation account), place a minus sign before the chosen letter. 10. 1....
Slide 8 chapter 01: Accounting in Business Explain generally accepted accounting principles and define and apply several accounting principles Knowledge Check 03 Before we move on, quiz yourself to test your understanding Question 1 of 2 The private-sector organization that is primarily responsible for developing GAAP for use by all U.S. companies is the: O SEC O IASB O FASB O IFRS submit answer& continue Slide 9 chapter 01: Accounting in Business Explain generally accepted accounting principles and define and...
What does valuation mean in accounting? What is a valuation method as it pertains to an account? To what accounts do valuation apply? Identify and explain the two measurement principles per the FASB conceptual framework. Explore and come up with the correct valuation method for each of the following balance sheet line items. Moreover, why are these accounts reported on the balance sheet at these values? 1. Inventory 2. PPE 3. Intangible assets 4. Notes Payable, short-term 5. Bonds Payable,...
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