Question : 41. The distinction between recognition and realization essential to accrual accounting, : 1245911

 

 

41. The distinction between recognition and realization is essential to accrual accounting, hence the importance accorded to recognition criteria. Firms recognize items that qualify for inclusion in the financial statements when they enter the financial statements.  In the case of value decreases, the firm  
A. recognizes the decreases as impairment expenses when it realizes the collection of the reduced cash flows.
B. recognizes the decreases as cost of goods sold when the decreases occur before it realizes the collection of the reduced cash flows.
C. recognizes the decreases as impairment expenses when the decreases occur before it realizes the collection of the reduced cash flows.
D. recognizes the decreases as cost of goods sold when it realizes the collection of the reduced cash flows.
E. None of these answer choices is correct.

 

42. _____ means that the information is pertinent to the decisions of users of financial reports, in the sense that the information can make a difference in those decisions. 
A. Conservatism
B. Realization
C. Recognition
D. Relevance
E. Reliability

 

43. _____ means that the information presented is reasonably free from error and bias and faithfully represents what it purports to represent.  
A. Conservatism
B. Realization
C. Relevance
D. Reliability
E. Recognition

 

44. Historically, _____ has described a preference for financial reporting such “that possible errors in measurement be in the direction of understatement rather than overstatement of net income and net assets.”  
A. conservatism
B. reliability
C. realization
D. recognition
E. relevance

 

45. _____  is the basis for the practice of reporting certain assets at the lower of acquisition cost or fair value. The requirement to test assets for impairment and to record impairment charges rests on the notion that balance sheet carrying values of assets should not exceed the amount of cash that the firm expects to receive by using or selling the asset.  
A. Conservatism
B. Reliability
C. Relevance
D. Recognition
E. Realization

 

46. An accounting _____ arises when a firm incurs an obligation to make a future sacrifice that, because of a past event or transaction, it has little or no discretion to avoid.  
A. asset
B. liability
C. shareholders’ equity
D. revenue
E. expense

 

47. Which of the following is/are true regarding accounting liabilities?  
A. All accounting liabilities are obligations.
B. Not all obligations are accounting liabilities.
C. An item must meet the definition of a liability.
D. An item must recognition criteria.
E. All of these answers are correct.

 

48. _____ are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of a past event or transaction.  
A. Assets
B. Liabilities
C. Shareholders’ equity
D. Revenues
E. Expenses

 

49. The criteria for liability recognition include(s):  
A. the item represents a present obligation, not a potential future commitment or intent.
B. the obligation must exist as a result of a past transaction or exchange, called the obligating event.
C. the obligation must require a probable future economic resource that the firm has little or no discretion to avoid.
D. the obligation must have a relevant measurement attribute that the firm can quantify with sufficient reliability.
E. All of these answers are correct.

 

50. _____  is a residual interest or claim—that is, the owners (shareholders) of a firm have a claim on assets not required to meet the claims of creditors.  
A. Retained Earnings
B. Shareholders’ equity
C. Additional Paid-in-Capital
D. Deficit
E. Par Value

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more