Intermediate Accounting Week 1 Exercises

Intermediate Accounting Week 1 Exercises - 11 1 False 2...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1–1. 1. False. Comprehensive income relates only to nonowner changes in equity. 2. True. 3. False. The tendency to recognize unfavorable events early is an example of conservatism. 4. False. The conceptual framework focuses on the needs of external users of financial information, primarily investors and creditors. 5. False. Concepts Statements are not considered authoritative pronouncements in the sense of establishing, superseding, or amending present GAAP. 6. True. 7. False. Recognition involves boiling down all the estimates and judgments into one number and using that one number to make a journal entry. Disclosure skips the journal entry and relies on a financial statement note to convey the information to users. 8. False. Changing business conditions and activities might warrant a change in accounting method to make financial statements more useful and informative. 1–8. When a company cannot justify applying the going concern assumption, different measurement attributes may be required. The identified situations
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online