CH midterm indira 2 Nov 25 SOlns.doc - 1(TCO D The basis...

  • No School
  • AA 1
  • 3

This preview shows page 1 - 2 out of 3 pages.

1. (TCO D) The basis for classifying assets as current or noncurrent is conversion to cash within (Points : 5) the operating cycle or one year, whichever is longer. Question 2. 2. (TCO A) Why are some of the major differences between iGAAP and U.S. GAAP? Explain in detail. (Points : 25) The significance difference between I GAAP and U.S GAAP is on the valuation of assets, inventories and many other areas. For example i GAAP list the long term assets first but the US GAAP list the current asset first and long term assets later one. The balance sheet format is also difference as per the U.S GAAP it list the current assets first whereas the I GAAP list the long term asset first. The other significance difference is US GAAP is rule based and I GAAP is most broadly based on the principle. Moreover IASB is focus on providing the information for management performance which is referred to stewardship Question 3. 3. (TCO C) Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2010, included the following expense accounts. Accounting and legal fees $140,000 Advertising $120,000 Freight-out $75,000 Interest $60,000 Loss on sale of long-term investments $30,000 Officers' salaries $180,000 Rent for office space $180,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department.
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes