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Unformatted text preview: Intermediate Accounting I – ACCT 3113-01 – Fall 2010 Chapter 02-1 Homework BRIEF EXERCISE 2-2 (a) Verifiability (b) Comparability (c) Consistency (d) Timeliness BRIEF EXERCISE 2-3 (a) Equity (b) Revenues (c) Equity (d) Assets (e) Expenses (f) Losses (g) Liabilities (h) Distributions to owners (i) Gains (j) Investments by owners BRIEF EXERCISE 2-4 (a) Periodicity (b) Monetary unit (c) Going concern (d) Economic entity BRIEF EXERCISE 2-5 (a) Revenue recognition (b) Expense recognition (c) Full disclosure (d) Historical cost BRIEF EXERCISE 2-6 Investment 1—Level 3 Investment 2—Level 1 Investment 3—Level 2 BRIEF EXERCISE 2-7 (a) Industry practices (b) Conservatism (c) Cost-benefit relationship (d) Materiality BRIEF EXERCISE 2-8 Companies and their auditors for the most part have adopted the general rule of thumb that anything under 5% of net income is considered not material. Recently, the SEC has indicated that it is okay to use this percentage for the initial assessment of materiality, but other factors must be...
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This note was uploaded on 10/21/2010 for the course ACCT 3113 taught by Professor Beth during the Spring '10 term at The University of Oklahoma.
- Spring '10