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Unformatted text preview: Midcourse Assessment Question 1 (30 points) /.Listed below are accounting assumptions, principles, information characteristics, and constraints contained in the FASB’s Conceptual Framework for financial reporting. A Economic entity assumption H Full disclosure principle B Going concern assumption I Relevance characteristic C Monetary unit assumption J Reliability characteristic D Periodicity assumption K Consistency characteristic E Historical cost principle L Materiality constraint F Revenue recognition principle M Conservatism G Matching principle In the Midcourse Assessment Solution Workbook (MS Excel file), provide the letter corresponding to the single PRIMARY assumption, principle, information characteristic, or constraint listed above that corresponds with each of the 15 statements listed in the Workbook. Some items (A through M) may be an appropriate response to more than one of these statements. Question 2 (60 points) Incomplete, draft-in-process financial statements of Erickson International, Inc. for the year ended December 31, 2009 show “income from continuing operations before taxes” of $1,120,000. This amount does not yet reflect any of the following items; that is, Erickson has not yet considered any of the items described below in preparing the preliminary,...
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- Spring '12