Econ 3A-W'01-PROB # 1&2

Econ 3A-W'01-PROB # 1&2 - Econ3AFinancialAccountingW01...

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Econ 3A - Financial Accounting - W’01 Exam#3 –100 points Problem 1 - Conceptual framework (30 points) The following information was taken from the annual report of Apple Computer. Match each of the ten elements, qualitative characteristics, assumptions, principles, or exceptions listed below with one of the ten items. Conservatism Reliability Monetary unit Periodicity Revenues Matching Assets Revenue recognition Economic entity Materiality 1. The company’s reporting period ends on the last Saturday in September. PERIODICITY 2. The consolidated financial statements include the accounts of Apple Computer and subsidiaries. ECONOMIC ENTITY 3. Inventories are stated at the lower of cost or market. CONSERVATISM 4. Interest expense is offset against interest income. MATERIALITY 5. Apple’s __________________ occurs when these criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility is probable. REVENUE RECOGNITION
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This note was uploaded on 04/12/2009 for the course ECON 3A taught by Professor Loster during the Winter '07 term at UCSB.

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Econ 3A-W'01-PROB # 1&2 - Econ3AFinancialAccountingW01...

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