Homework Answers
Correct answer-------Cost principle
.
GAAP requires that assets should be recorded at its cost or more precisely Historical cost.
Cost of an asset also includes the cost of making asset available for use such as installation cost, transportation cost. In short all cost associated with making asset useful for its determined purpose.
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When determining an asset's cost, GAAP requires the use of which principle? Conservative principle O Materiality...
GAAP requires the use of accrual accounting. O True O False
GAAP requires the use of accrual accounting. O True O False
Which of the following is true of accounting for research and development cost? Under U.S. GAAP...
Which of the following is true of accounting for research and development cost? Under U.S. GAAP accounting for research and development costs violates the conservative principle. OR The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
Which of the following is true of accounting for research and development cost? Accounting for research...
Which of the following is true of accounting for research and development cost? Accounting for research and development costs is same under U.S. GAAP and IFRS. The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings. Under U.S. GAAP accounting for research and development costs violates the conservative principle. U.S.GAAP adheres to the matching principle by expensing research and development costs.
Options: Correctness: Correct or Incorrect Principle: a. Faithfull representation b. Faithful representation (Full disclosure) Materiality c....
Options:
Correctness: Correct or Incorrect
Principle:
a. Faithfull representation
b. Faithful representation (Full disclosure) Materiality
c. Faithful representation (Net asset principle)
d. Historical Cost Measurement
e. Historical cost measurement and Net asset principle, Full
disclosure materiality and separate-entity
f. Matching; Comparability
g. Matching; Time-period assumption
h. Revenue and Historical cost measurement
i. Revenue and matching; Faithful representation and Freedom
from bias
j. Revenue recognition
k. Separate-entity
l. Time-period assumption
The following list of statements poses conceptual issues: Required: 1 and...
Match the GAAP with its description and a case in which the GAAP has been violated....
Match the GAAP with its description and a case in which the GAAP has been violated. So for each number, find the associated letter and roman numeral. 1. Business Entity Concept 2. Monetary Unit Assumption 3. Matching Principle 4. Historical Cost Principle 5. Materiality Principle DESCRIPTIONS: a) The accounting for a business or organization is kept separate from the personal affairs of its owner, other business or organization. b) Each expense related to revenue earned must be recorded in the...
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption...
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption Exercise 4-2 Identify the accounting concept that describes each situation below. Do not use any concept more than once. Periodicity assumption (a) is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Revenue recognition principle (b) indicates that personal and business recordkeeping should be separately maintained. Full disclosure principle (c) Ensures that all relevant...
Which of the following does not properly describe the depreciation process? Multiple Choice O It is...
Which of the following does not properly describe the depreciation process? Multiple Choice O It is an allocation process. O It is consistent with the matching principle. О It involves the use of estimates. It attempts to determine an asset's market value.
Question 47 The higher of either the asset's future value or the amount it can be...
Question 47 The higher of either the asset's future value or the amount it can be sold for, is known as: Not yet answered Marked out of 1.00 Select one: a. the book value Flag question b. the recoverable amount O c. the carrying value d. the retail sale value Question 48 Which principle would you use to determine the accounting period in which revenue and expenses are recognized? Not yet answered Marked out of 1.00 Select one: a. the...
accounting principle
What is Accounting principle?Accounting principles are fundamental guidelines that shape the discipline of accounting, providing a structured framework for recording, reporting, and analyzing financial transactions. These principles, integral to maintaining consistency, accuracy, and transparency in financial reporting, include the accrual principle, emphasizing the recording of transactions when they occur rather than when cash changes hands. The consistency principle underscores the importance of applying chosen accounting methods uniformly over time, fostering comparability across financial statements. The materiality principle advocates for the...
The revenue principle requires that a business record revenue when: O A. it prepares the invoice...
The revenue principle requires that a business record revenue when: O A. it prepares the invoice for the customer. OB. it has been earned and not before. O c. it receives an order from a customer. OD. it receives payment from a customer.
GAAP requires the use of accrual accounting. O True O False
Options:
Correctness: Correct or Incorrect
Principle:
a. Faithfull representation
b. Faithful representation (Full disclosure) Materiality
c. Faithful representation (Net asset principle)
d. Historical Cost Measurement
e. Historical cost measurement and Net asset principle, Full
disclosure materiality and separate-entity
f. Matching; Comparability
g. Matching; Time-period assumption
h. Revenue and Historical cost measurement
i. Revenue and matching; Faithful representation and Freedom
from bias
j. Revenue recognition
k. Separate-entity
l. Time-period assumption
The following list of statements poses conceptual issues: Required: 1 and...
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption Exercise 4-2 Identify the accounting concept that describes each situation below. Do not use any concept more than once. Periodicity assumption (a) is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Revenue recognition principle (b) indicates that personal and business recordkeeping should be separately maintained. Full disclosure principle (c) Ensures that all relevant...
Which of the following does not properly describe the depreciation process? Multiple Choice O It is an allocation process. O It is consistent with the matching principle. О It involves the use of estimates. It attempts to determine an asset's market value.
Question 47 The higher of either the asset's future value or the amount it can be sold for, is known as: Not yet answered Marked out of 1.00 Select one: a. the book value Flag question b. the recoverable amount O c. the carrying value d. the retail sale value Question 48 Which principle would you use to determine the accounting period in which revenue and expenses are recognized? Not yet answered Marked out of 1.00 Select one: a. the...
The revenue principle requires that a business record revenue when: O A. it prepares the invoice for the customer. OB. it has been earned and not before. O c. it receives an order from a customer. OD. it receives payment from a customer.
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