INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264559527
Author: SPICELAND
Publisher: MCG
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Question
Chapter 1, Problem 1.14E
To determine
Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting professionals overseeing the creation of financial statement. FASB standards are generally known as GAAP.
To Identify: The accounting concepts that relates to the given statement or phrase.
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Students have asked these similar questions
Meaning of accounting principles with examples: i. Money measurement conceptii. Dual aspect concept iii. Objectivityiv. Historical cost
16
What do the following accounting terms and principles mean: Please define and provide an example of how it would be applied.
Matching Principle -
Historical Cost –
Monetary Unit –
Accounting Period –
Going Concern –
Listed below are several information characteristics and accounting principles and assumptions. Match
the letter of each with the appropriate phrase that states its application. (Items a through k may be used
more than once.)
a. Economic entity assumption
b. Going concern assumption
c. Monetary unit assumption
d. Periodicity assumption
e. Historical cost principle
f. Revenue recognition principle
g. Matching principle
h. Full disclosure principle
i. Relevance characteristic
j. Reliability characteristic.
k. Consistency characteristic
1. Stable-dollar assumption (do not use historical cost principle).
2. Earning process completed and realized or realizable.
3. Presentation of error-free information with representational faithfulness.
4. Yearly financial reports.
5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.)
6. Useful standard measuring unit for business transactions.
7. Notes as part of necessary information to a fair presentation.
8. Affairs of…
Chapter 1 Solutions
INTERMEDIATE ACCOUNTING
Ch. 1 - Prob. 1.1QCh. 1 - What is meant by the phrase efficient allocation...Ch. 1 - Identify two important variables to be considered...Ch. 1 - What must a company do in the long run to be able...Ch. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Explain what is meant by: The benefits of...Ch. 1 - Prob. 1.17QCh. 1 - Briefly define the financial accounting elements:...Ch. 1 - Prob. 1.19QCh. 1 - What is the going concern assumption?Ch. 1 - Prob. 1.21QCh. 1 - Prob. 1.22QCh. 1 - What are two advantages to basing the valuation of...Ch. 1 - Describe how revenue recognition relates to...Ch. 1 - What are the four different approaches to...Ch. 1 - In addition to the financial statement elements...Ch. 1 - Briefly describe the inputs that companies should...Ch. 1 - Prob. 1.28QCh. 1 - Prob. 1.29QCh. 1 - Prob. 1.30QCh. 1 - Prob. 1.31QCh. 1 - Prob. 1.32QCh. 1 - Accrual accounting LO12 Cash flows during the...Ch. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Prob. 1.3BECh. 1 - Basic assumptions and principles LO17 through...Ch. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Concepts; terminology; conceptual framework LO17...Ch. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Basic assumptions and principles LO18, LO19...Ch. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.1DMPCh. 1 - Research Case 12 Accessing SEC information through...Ch. 1 - Prob. 1.7DMPCh. 1 - Prob. 1.8DMPCh. 1 - Prob. 1.9DMPCh. 1 - Prob. 1.10DMPCh. 1 - Real World Case 115 Elements; disclosures; The...Ch. 1 - Prob. 1.12DMPCh. 1 - Target Case LO19 Target Corporation prepares its...
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Similar questions
- Comprehension questions 11 and 12 page 58 11. How does accounting information reduce agency problems in relationships between management and debt holders?arrow_forwardWhich of the following is considered a constraint on useful information by Statement of Financial Accounting Concepts No. 8? a. benefits costs b. conservatism c. timeliness d. verifiabilityarrow_forwardRefer to Exhibit 9.1. Which accounts are relevant in the revenue cycle? Identify the relationships among them.arrow_forward
- Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…arrow_forwardQ#01: Define different accounting principles with examples?arrow_forwardIntermediate Accounting 105 Why should inventories be included in (a) a statement of financial position and (b) the computation of net income? Please provide GAAP concepts and own examples/explanations. Thank youarrow_forward
- Question 22 What are the 2 Fundamental Qualities of useful accounting information? Answers: Faithful Representation, Accuracy Relevance, Faithful Representation Timeliness, Consistency Relevance, Materialityarrow_forwardQualitative Characteristics The following is a list of qualitativecharacteristics of useful accounting information identified in the FASB'sand the IASB's Statement of Financial Accounting Concepts No. 8 andstatements describing the qualities. A. ComparabilityB. Decision usefulnessC. RelevanceD. Faithful representation E. Predictive valueF. Confirmatory valueG. VerifiabilityH. NeutralityI. Free from error J. ConsistencyK. MaterialityL. TimelinessM. UnderstandabilityN. Completeness _ _ _ _ _ _1. Different knowledgeable and independent observers conreach consensus that a particular representation is faithful_ _ _ _ _ _2. Making information available to decision makers before itloses its capacity to influence decisions._ _ _ _ _ _3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations._ _ _ _ _ _4. Overall objective of financial information. _ _ _ _ _ _ 5. Absence of bias intended to influence financial statementusers'…arrow_forwardWhich of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market rule b. Materiality concept c. Disclosure principle d. Consistency principlearrow_forward
- Which measure is limited by the fact that it uses accounting income? a. ROI b. RI c. EVA d. All of the abovearrow_forwardQuestion 16 What are the Enhancing Qualities of the Qualitative Characteristics of accounting information? Answers: Completeness, Verifiability, Timeliness, Understandability Comparability, Neutrality, Timeliness, Understandability Comparability, Verifiability, Timeliness, Free from Error Comparability, Verifiability, Timeliness, Understandabilityarrow_forwardHow does the accounting conceptual framework apply to the following IAS? Or how does the conceptual framework relate to the following accounting standards? 1. IAS 1 2. IAS 21 3. IAS 8 Any explanation will be highly appreciated. Thank you!arrow_forward
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