Question : 91. Grand Metropolitan a consumer foods company headquartered in the United : 1245896

 

 

91. Grand Metropolitan is a consumer foods company headquartered in the United Kingdom. It has followed the common practice in the U.K. of treating expenditures on product development, quality control, and advertising as an expense each year. Grand Metropolitan has now decided to recognize the full value of its brand names as an asset on the balance sheet as of September 30, Year 6. To keep the balance sheet in balance and in accordance with U.K. practice, Grand Metropolitan will likely 
A. decrease some other asset.
B. increase a current liability.
C. increase a noncurrent liability.
D. increase shareholders’ equity.
E. decrease shareholders’ equity.

 

92. Generally accepted accounting principles in the United States require firms to 
A. capitalize and amortize all research and development costs over the future expected benefit period.
B. capitalize and amortize all research and development costs over a period no greater than 5 years.
C. capitalize and amortize all research and development costs over a period no greater than 10 years.
D. expense all research and development costs in the period incurred.
E. None of these answer choices is correct.

 

93. Which of the following is/are true regarding the “reliability” of a reported amount? 
A. that the amount corresponds to what it purports to represent
B. is reasonably free from error and bias in the sense that multiple independent measurers would agree on the amount.
C. neither U.S. GAAP nor IFRS specifies what amount of reliability is “sufficient,” suggesting that this judgment is context-specific and subjective, not quantifiable.
D. Answers a, b, and c are correct.
E. None of these answer choices is correct.

 

94. Both U.S. GAAP and IFRS specify the asset measurement basis for financial reporting and _____  is the initial measurement attribute for most assets.  
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost

 

95. The _____  of an asset as defined in U.S. GAAP is an opportunity cost in the sense that it reflects an amount that the firm could receive if it sold the asset today. It is the amount the firm forgoes by not selling the asset. In U.S. GAAP, it reflects a market participant perspective, so that the intentions of managers regarding how they plan to use the asset do not determine the measurement.  
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost

 

96. In the recognition criteria for liabilities with uncertain amount and/or timing, “probable” is used in U.S. GAAP to refer to a threshold of likelihood—a rule of thumb used in practice is approximately _____ In IFRS, “probable” as recognition criterion for liabilities with uncertain amount and/or timing means approximately _____. 
A. 33%; 25%
B. 51%; 51%
C. 60%; 25%
D. 80%; 51%
E. 90%; 75%

 

97. Under both U.S. GAAP and IFRS, the firm must immediately expense all expenditures on _____.  
A. research
B. development
C. nonfinancial assets
D. financial assets
E. intangible assets

 

98. U.S. GAAP explicitly defines _____ of an asset as “the price that would be received to sell an asset [or paid to transfer a liability] in an orderly transaction between market participants at the measurement date.” Thus, U.S. GAAP defines it as an exit value, namely, the amount the firm would receive if it sold an asset in an orderly, arm’s-length transaction at the measurement date.  
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost

 

99. All of the following statements are true except: 
A. U.S. GAAP and IFRS define fair value as “the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”
B. The fair value of an asset is an opportunity cost in the sense that fair value reflects an
amount that the firm could receive if it sold the asset today.
C. Current replacement cost is  often used in U.S. GAAP to measure inventories whose usefulness has declined below acquisition cost.
D. Net realizable value is similar, but not identical, to fair value.
E. Net realizable value is not allowed by IFRS.

 

 

 

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