Which of the following represent problems encountered when comparing the financial statements of two separate entities? I. Either one, or both, of the firms may be conglomerates and thus have unrelated fines of business. II. The operations of the two firms may vary geographically. I. The firms may use differing accounting methods. IV. The two firms may be seasonal in nature and have different fiscal year ends. Select one: A. Il and II only. O B. I, II, and III only. O C.I, II, and Iv only. O D. I and Il only. O E.I, II, II, and IV.

Which of the following represent problems encountered when comparing the financial statements of two separate entities? I. Either one, or both, of the firms may be conglomerates and thus have unrelated fines of business. II. The operations of the two firms may vary geographically. I. The firms may use differing accounting methods. IV. The two firms may be seasonal in nature and have different fiscal year ends. Select one: A. Il and II only. O B. I, II, and III only. O C.I, II, and Iv only. O D. I and Il only. O E.I, II, II, and IV.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1.1.4 The consistency concept requires that; A. Items that have been combined in the current financial period do not have to be combined in the same way in the next financial period. B. Some items are treated in the same way within an accounting period. C. Every single item in the statement of financial position only must be treated in the same way. D. All similar items are treated in the same way within an accounting period as well as from one year to the next year. 1.1.5 "Past financial performance" and "present financial position" refer to: A. Statement of profit or loss and other comprehensive income and the statement of financial position respectively. B. Statement of financial position and the statement of profit or loss and other comprehensive income respectively. C. Statement of profit or loss and other comprehensive income and the statement of changes in equity. D. Statement of profit or loss and other comprehensive income and the statement of cash flows. 1.1.6 In terms of…
23 S1: A branch is able to report an investment in another branch of the home office, as long as such investment account is to be eliminated in full when preparing combined financial statements.S2: Contingent considerations in a business combination are only recognized if the outflow of economic resources is probable and the estimated outflow can be measured reliably. Group of answer choices S:1 False; S2: True S1: False; S2: False S1: True; S2: False S1: True; S2: True
If the statement of financial position error is discovered in a subsequent accounting period, what action is to be done by the entity? A. Reclassify the item to its proper real account but do not restate the statement of financial position of the prior year affected by the error. B. Reclassify the item to its proper real account. C. Restate the statement of financial position of the prior year affected by the error. D. Reclassify the item to its proper real account and restate the statement of financial position of the prior year affected by the error
Which of the following statements pertaining to Accounting is correct? A. Accounting is a fixed science. B. The double-entry system of accounting has been used for centuries C. The objective of external financial statements is to communicate the economic effects only of completed transactions and other events in the entity for management decision-making D. General purpose financial statements were developed primarily because all outside party users have the same information needs
The objective of general-purpose financial reporting is? to provide users with financial information that implies total freedom from error to provide companies with the option to select information that favors one set of interested parties over another O to provide financial information about the reporting entity that is useful to present and potential equity investors, lender and other creditors in making decisions in their capacity as capital providers to provide a metric for financial information used to determine when the boundary between two or more entities should disregarded and the entities considered to be a licensing arrangement
While comparing the performance of all the affiliates of an American Multinational company, the CEO of the parent company producing electronic products, notices a translation loss in the Omani affiliate. Which among the below scenarios do you think is the most probable reason for that loss? O a. Exposed assets exceed exposed liabilities and USD depreciates. O b. The OMR depreciates. OC. The subsidiary's balance sheet shows a loss. d. Exposed liabilities exceed exposed assets and USD appreciates.
Which of the following statements regarding the consistency concept is not true? Select one: A. The objective of the consistency concept is to facilitate comparison between one period and another B. A selected accounting method must be used consistently every year C. A company cannot change the selected accounting method once it is used D. If inconsistency is found, the company must provide full explanation in the Statement of Profit or Loss and Other Comprehensive Income itself, or in the Statement of Financial Position, or in the notes to the accounts

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