Intermediate Accounting: Reporting and Analysis
2nd Edition
ISBN: 9781285453828
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 8MC
To determine
Identify the accounting concept that states “the valuation of' a promise to receive cash in the future at present value on the financial statements of a company”.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The valuation of a promise to receive cash in the future at present valueon the financial statements of a company is valid because of theaccounting concept of:
a. entityb. materialityc. going concernd. neutrality
ductory financial accounting_
Liquidity is simply:
O a. another term for non-current assets
O b. a company's ability to pay obligations when due
O c. another term for current liabilities
O d. another term for cash
ype here to search
Which of the following returns is consistent with contractual cash flows that are solely payments of principal and interest or SPPI?
I. Return of passage of time
II. Return for the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation
III. Return for the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset
IV. Return for amounts to cover expenses and a profit margin
a. I, II, III, and IV
b. I, II, and III
c. I and IV only
d. II and III only
Chapter 2 Solutions
Intermediate Accounting: Reporting and Analysis
Ch. 2 - Prob. 1GICh. 2 - Prob. 2GICh. 2 - How do accounting concepts, principles, standards,...Ch. 2 - Prob. 4GICh. 2 - Prob. 5GICh. 2 - Prob. 6GICh. 2 - What is the Objective: Useful Information about...Ch. 2 - Prob. 8GICh. 2 - Prob. 9GICh. 2 - Define (a) return on investment, (b) risk, (c)...
Ch. 2 - Prob. 11GICh. 2 - Prob. 12GICh. 2 - Prob. 13GICh. 2 - Prob. 14GICh. 2 - Prob. 15GICh. 2 - Prob. 16GICh. 2 - What is the cost constraint, and how does it...Ch. 2 - Prob. 18GICh. 2 - Prob. 19GICh. 2 - Prob. 20GICh. 2 - Prob. 21GICh. 2 - Prob. 22GICh. 2 - Prob. 23GICh. 2 - Describe accrual accounting. What are the...Ch. 2 - What drives the timing of revenue recognition?...Ch. 2 - Prob. 26GICh. 2 - Prob. 27GICh. 2 - Prob. 28GICh. 2 - Prob. 29GICh. 2 - The information provided by financial reporting...Ch. 2 - Which of the following is considered a constraint...Ch. 2 - According to Statement of Financial Accounting...Ch. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 6MCCh. 2 - Accruing net losses on obsolete inventory is an...Ch. 2 - Prob. 8MCCh. 2 - An accrued expense is an expense: a. incurred but...Ch. 2 - Prob. 10MCCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 1CCh. 2 - Prob. 2CCh. 2 - Prob. 3CCh. 2 - Prob. 4CCh. 2 - An accountant must be familiar with the concepts...Ch. 2 - Prob. 6CCh. 2 - Prob. 7CCh. 2 - Prob. 8CCh. 2 - Prob. 9CCh. 2 - Accruals and Deferrals Generally accepted...Ch. 2 - Prob. 11CCh. 2 - Prob. 12CCh. 2 - You have been hired as an accounting consultant by...Ch. 2 - Prob. 14C
Knowledge Booster
Similar questions
- Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.arrow_forwardThe primary objective of financial management Can be in the form of a. Maximise the entity’s asset b. Minimise an entity’s liabilities c. Achieve a balance between risk and return d. Achieve a balance between current assets and current liabilitiesarrow_forwardThe relationship between current assets and current liabilities is a. useful in determining profitability. b. useful in evaluating a company’s liquidity. c. useful in evaluating a company’s solvency. d. useful in determining the amount of a company’s non-current debt.arrow_forward
- How does the concept of fair value accounting influence the valuation of assets and liabilities on a company's balance sheet, and what are the advantages and disadvantages of using fair value accounting in financial reporting?arrow_forwardA company may generate sufficient cash to pay its debts, it may use for other purposes refers to * a. Collateral b. Capacity c. Cash d. Characterarrow_forwardInvestments in debt instruments are financial assets because they are A. Equity instruments of another entity. B. All of these. C. Contractual rights to receive cash or another financial asset from another entity. D. Cash equivalents.arrow_forward
- Which financial statement shows that a company’s resources equal claims to those resources? a. Income statement.b. Statement of stockholders’ equity.c. Balance sheet.d. Statement of cash flows.arrow_forwardn analyzing a company’s financial statements, which financial statement would a potential investor primarily use to assess the company’s liquidity and financial flexibility? a. Income statement b. Statement of retained earnings c. Statement of cash flows d. Statement of financial positionarrow_forwardAssets and liablities are classified on the balance sheet into correct and long-term categories in order to a. determine the value of the businessb. determine the cash flows of the businessc. yield information about liquidityd. distinguish them from extraordinary itemsarrow_forward
- Describe the concept of conservatism in accounting and its implications on financial reporting. How does conservatism influence the recognition and measurement of assets, liabilities, revenues, and expenses?arrow_forwardO Balance sheet In analyzing a company's financial statements, which financial statement would a potential investor primarily use to assess the company's liquidity and financial fiexibility? O Income statement O Staterment of retained earnings Statement of cash flowsarrow_forwardWhat type of financial information are accessed by the users to make decisions? a. Composition of the management b. Bank accounts of the company c. Property of the company d. Expected future cash inflowsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning