Wk 1 Chapter 1 Exerise 1_1 & 1_8

Wk 1 Chapter 1 - False there may be some changes within the company or regulations that will cause a change in a method Also when changing methods

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

View Full Document Right Arrow Icon
Intermediate Accounting 1 Wk 1 Assignment Chapter 1 Exercise 1-1 1. Comprehensive income includes changes in equity resulting from distributions to owners. True 2. Timeliness and predictive value are both characteristics of relevant information. True 3. The tendency to recognize favorable events early is an example of conservatism. True 4. The conceptual framework focuses primarily on the needs of internal users of financial information. True 5. The seven Statements of Financial Accounting Concepts are considered part of generally accepted accounting principle. False - it provides a framework within specific accounting standards. 6. The overriding objective of financial reporting is to provide information for making economic decisions. True 7. The term recognition is synonymous with the term disclosure. True 8. Once an accounting method is adopted, it should never be changed.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: False - there may be some changes within the company or regulations that will cause a change in a method. Also when changing methods you need to show exactly the change of method. Exercise 1-8 1. Plant and equipment are carried at an amortized cost on a straight -line basis of $1,500,000. Historical cost 2. Bonds with a maturity price of $2,000,000 and interest in arrears of $500,000 are reported as a concurrent liability. Current market value 3. Accounts receivable are carried at $700,000, the gross amount charged for sales. No allowance for doubtful accounts is reported. Net realizable 4. The reported LIFO cost of inventory is $300,000. Current replacement cost 5. Investments in a subsidiary company are recorded at initial cost plus undistributed. Present value...
View Full Document

This note was uploaded on 05/29/2011 for the course EC 2011 taught by Professor Johnson during the Spring '11 term at FIT.

Ask a homework question - tutors are online