sneakerhead200
2 years ago
20
71. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled.C. Gains and losses never arise from the remeasurement of assets and liabilities. D. Firms realize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.
72. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled.C. Gains and losses may arise from the remeasurement of assets and liabilities. D. Firms recognize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms recognize gains and losses when those items enter the measurement of net income or other comprehensive income.
73. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that is, equal to the difference between the net asset received and the carrying value of the asset sold or between the net asset given and the carrying value of the liability settled.C. Gains and losses may arise from the remeasurement of assets and liabilities. D. Firms realize gains and losses when they sell or exchange assets or settle liabilities in market transactions. E. Firms realize gains and losses when those items enter the measurement of net income or other comprehensive income.
74. Which of the following is/are true? A. Comprehensive income equals the net amount of revenues, expenses, gains, and losses during an accounting period. B. Authoritative guidance classifies revenues and expenses arising from a firm’s core business as components of net income. C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. all of the above
75. Accumulated Other Comprehensive Income A. is a shareholders’ equity account that acts for other comprehensive income the way retained earnings acts for net income. B. equals net income plus other comprehensive income. C. includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Firms close amounts in net income for a period to Accumulated Other Comprehensive Income at the end of the period.E. all of the above
76. Which of the following is not true? A. Accrual accounting measures the effects of transactions and events in the periods when they occur. B. Cash-basis accounting recognizes only cash receipts and disbursements. C. Under accrual accounting, firms recognize revenues when an arrangement satisfies the revenue recognition criteria, increasing net assets but not necessarily cash at the time of revenue recognition. D. Under accrual accounting, firms recognize expenses when an arrangement satisfies the expense recognition criteria, decreasing net assets but not necessarily cash at the time of expense recognition. E. Accrual accounting often uses the amount of cash received or paid in some period to measure the amount of revenues and expenses recognized during the current period, and the timing of revenue and expense recognition coincides with the timing of cash receipts and disbursements.
77. The concept of _____ includes both the power, or capacity, to direct the strategic, operating, investing, and financing activities of another entity, and the ability to benefit from increases in the value of the other entity and to incur losses from decreases in value. A. ownershipB. managementC. significant influenceD. controlE. state governance
78. Which of the following is not true? Firms recognize revenue A. when they have completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service.B. when they have received cash. C. using the percentage-of-completion method when the firms sell products under long-term contracts, such as construction companies.D. using the completed contract method [U.S. GAAP, only] when firms cannot reasonably estimate revenues and costs.E. using a variant of the cost-recovery method [IFRS, only] when firms cannot reasonably estimate revenues and costs.
79. Firms recognize revenue A. when they have completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service.B. when they have received cash or a receivable capable of sufficiently reliable measurement. C. using the percentage-of-completion method when the firms sell products under long-term contracts, such as construction companies.D. using the completed contract method [U.S. GAAP, only] when firms cannot reasonably estimate revenues and costs.E. all of the above
80. Which of the following is/are true? A. Firms report accounts receivable they expect to collect within one year at the amount of cash the firms expect to receive. B. Both U.S. GAAP and IFRS require firms with significant uncollectible accounts receivable to estimate the amount of uncollectible accounts related to a particular period’s sales and recognize that amount as bad debt expense in the same period as the related revenues. C. Firms typically use a contra account to accounts receivable, such as Allowance for Uncollectibles, to reflect the amount of accounts receivable they do not expect to collect. D. The entry to recognize estimated uncollectible amounts involves a debit to Bad Debt Expense and a credit to Allowance for Uncollectibles.E. all of the above
