Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 1, Problem 1.7E
Rules-versus Principles-Based Accounting. Review the following statements and indicate if the statement is referring to a principles-based or a rules-based accounting standard.
| Statement. An accountant will use a particular accounting standard only if ... | Principles-Based or Rules-Based Accounting Standard |
| a. ... the length of a contract covers substantially all of the useful life of a plant asset. | a. ____________________ |
| b. ... the number of new common shares a firm issues is equal to 20% of the previously outstanding shares. | b. ____________________ |
| c. ... a corporation owns over 50% of the voting shares of an affiliate company. | c. ____________________ |
| d ... a corporation has the ability to control the operating and financing activities of an affiliate company. | d. ____________________ |
| e. ... it is more likely than not that a company’s tax position will be sustained upon examination by the Internal Revenue Service. | e. ____________________ |
| f. . .. the sum of the undiscounted future |
f. ____________________ |
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Answer the following:
a. Give at least five examples of revenue from contracts to customer.
b. What are the effect of unclassified accounts in the financial statements to the stakeholders
TRUE or FALSE
Materality Concept
Question 1. When it comes to determining the materiality of an amount, the accountant typically compares it to total assets, total liabilities, total expenses, etc.
10. Which of these is a similarity between financial accounting and managerial accounting?
Select one:
A. Both report to the same group of accounting users.
B. Both report past financial events.
C. Both use the same accounting standards of MASB.
D. Both provide information for decision making.
11. Which of the followings is NOT a temporary or nominal account?
Select one:
A.
Utility Expense.
B.
Prepaid Insurance.
C.
Drawings.
D.
Depreciation Expense.
12. Which of the following statements related to expenses is CORRECT?
Select one:
A.
Expenses decrease owner's equity and has a credit normal balance.
B.
Expenses increase owner's equity and has a debit normal balance.
C.
Expenses decrease owner's equity and has a debit normal balance.
D.
Expenses increase owner's equity and has a credit normal balance.
Just answer the question without explanation. Thanks in advance
Chapter 1 Solutions
Intermediate Accounting
Ch. 1 - Prob. 1.1QCh. 1 - Prob. 1.2QCh. 1 - How is the allocation of capital linked to the...Ch. 1 - Prob. 1.4QCh. 1 - Prob. 1.5QCh. 1 - What is the function of the accounting standard...Ch. 1 - Can U.S. companies listen on U.S. stock exchanges...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.1BECh. 1 - Prob. 1.2BECh. 1 - Financial Statement Users and Other Parties...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.5BECh. 1 - Economic Entity. What is an economic entity?Ch. 1 - Prob. 1.7BECh. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.12BECh. 1 - Financial Accounting. Define financial accounting...Ch. 1 - Prob. 1.2ECh. 1 - Convergence of Accounting Standards, IFRS Vikram...Ch. 1 - History of Standard Setting in the United States....Ch. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Rules-versus Principles-Based Accounting. Review...
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