Becker_Review_Problems_Week_7- Ch 24

Becker_Review_Problems_Week_7- Ch 24 - BECKER REVIEW...

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Week Seven NEW QUESTION The following is taken from the Becker CPA Review with permission: Which of the following information should be disclosed in the summary of significant accounting policies? a. Refinancing of debt subsequent to the balance sheet date b. Guarantees of indebtedness of others c. Criteria for determining which investments are treated as cash equivalents d. Adequacy of pension plan assets relative to vested benefits Taken from Becker CPA Review with permission F1/67-CPA-00103 Solution: Choice c is correct. The method of determining which assets are considered to be cash equivalents is a significant accounting policy. APB 22 para. 6 Choice a is incorrect. Debt refinancing would be disclosed in a separate indebtedness note. Choice b is incorrect. Guarantees of other entity’s indebtedness would be disclosed in a separate commitments and contingencies note. Choice d is incorrect. Information about pension plan assets and pension plan liabilities is
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Becker_Review_Problems_Week_7- Ch 24 - BECKER REVIEW...

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