E2-1 (Usefulness, Objective of Financial Reporting) Indicate whether the
following statements about the conceptual framework are true or false. If false,
provide a brief explanation supporting your position.
SOLUTIONS TO EXERCISES
EXERCISE 17-1 (10-15 minutes)
EXERCISE 17-2 (15-20 minutes)
January 1, 2003
December 31, 2003
December 31, 2
Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries.
The balance sheet of Zweifel is given in an abbreviated form below.
Moss and Zweifel agree that:
1. Land is undervalued by $30,000.
2. Equipment is overvalued by
Presented below is net asset information related to the Carlos Division of Santana, Inc.
The purpose of the Carlos division is to develop a nuclear-powered aircraft. If successful,
traveling delays associated with refueling could be substantially redu
1. What is the objective of financial reporting? How do general-purpose financial
statements help meet this objective.
The objective of financial reporting is to provide financial information about the
reporting entity tha
1) Economic growth is not the same thing as development
Economic growth is referred to as the increase in the amount of goods and
services produced per head of population over a period of time whereas
Development is referred to as the
Maria Conchita Alonzo Corp.
For the Year Ended December 31, 2014
Less: Sales returns and allowances.
Net sales revenue.
Cost of goods sold.
Gross profit on sales.
Chapter 3: Accounting
Kun Yu, Intermediate Accounting I
Typical Asset Accounts
Current assets converted into cash within a year
LT Investments intended to be held for over one year
Chapter 2: Conceptual
Why Do We Need A
Facilitate the development of
Leading to more useful and consistent
AF310 Assignment 1
P3-1 and P3-3 in the textbook
Transactions during 2015 follow:
a. Borrowed $15,000 cash on a five-year, 8 percent note payable, dated March 1, 2015.
b. Purchased land for a future building site; paid cash, $13,000.