Accounting final

why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles

C. to match the cost of production with revenues as earned

which of the following is an application of the principle of systematic and rational allocations

A. amortization of intangible assets

what is the purpose of information presented in notes to the fin statement

A. provide disclosures

according to fasbs conceptual framework certain assets are reported in financial states as the amount of cash that would have to be paid if the same or equivalent assets were acquired currently what is the name of the reporting concept

A. replacement cost

some cost cannot be directly related to particular revenues but are incurred to obtain benefits that are exhausted in the period in which the costs are incurred. an example of such a cost is

A. sales persons monthly salaries

ande co. estimates uncollected account expense using the ratio of past actual losses from uncollected accounts to past net credit sales, adjusted for anticipated conditions. the practice follows the accounting concept of

C. matching

which is not a theoretical basis for the allocation of expenses

C. profit Maximization

which of the following is an example of the expense recognition principle of associating cause and effect

B sales commissions

items currently reported in financial statements are measured by different attributes. the amount of cash or its equivalent that would have to be paid in the same of equivalent asset were acquired currently defines the attribute of

B. Current cost

Under SFAC No. , elements of financial statements, interrelated elements of financial statements include

B. YES NO

which of the following documents is typically issued as part of the due process activates of the FASB for amending the fasbs accounting states

B. a proposed accounting standards update

the selling price of a product is reasonably assured, the units are interchangeable and the costs of selling and distributing the product are insignificant. to recognize revenue from the product as early in the revenue cycle as is permitted by gaap the rev recognition method that should be used is the

B. completion of production method

a stated purpose of SFAC 6, elements of financial statements is to

B. define the elements necessary for presentation of financial statements of both business and not for profit entities

consolidated financial statements are prepared when a parent subsidiary relationship exists in recognitions of the accounting concept of

B. entity

a patent purchased in year 1 is amortized over a 15 year life was determined to be worthless in 6 the write off of the asset in is an application of which of the following

B. immediate recognition

under a royalty agreement with another entity a comp will receive royalties from the assignment of a patent for 3 years. the royalties received should be reported as revenue

B. in the period earned

according to the FASBs conceptual framework asset valuation accounts are

B. neither assets nor liabilities

revenues of an entity are usually measured by the exchange values of the asset or liability involved. recognition of revenue does not occur until

B. rev is realized and earned

the star company is a service entity that requires customers to place their orders 2 weeks in advance. star bills its customers on the 15th day of the month following the date of service and requires that payments be made within 30 days of the billing date. conceptually star should recognize revenue from its services at the day when

B. the service is provided

according to the fasb conceptual framework which of the following statements conforms to the realization concept

B.depreciated equipment was sold in exchange for a not receivable

according to fasbs conceptual framework recognition is the process of formally incorporating an asset liability rev or expense. recognition criteria include all the following except

C. decision usefulness

items reported in financial statements must have a relevant attribute that can be measured in monetary units. according to the conceptual frameworks

C. difference measurement attributes are used for different items depending on the nature of the item

which of the following is not basis for the immediate recognition of a cost during a period

C. federal income tax saving

the fasbs conceptual framework explains both financial and phsical capital maintenance concepts. which capital maintenance concept is applied to current reported net income, and which is applied to comprehensive income

C. financial Financial

according to FASB's conceptual framework which of the following is an essential characteristic of an asset?

D. An asset provides future benefits

according to fasbs conceptual framework which of the following best describes the distinction between expenses and losses

D. Losses result from peripheral or incidental transactions and expenses result from ongoing major or central operations of the entity

arpco inc a for profit provider of healthcare services recently purchased two smaller companies and its researching accounting issues arising fro m the two combinations. which of the following accounting pronouncements are more authoritative

D. accounting standard

which of the following statements are about accrual accounting is false

D. accrual accounting primarily addresses the cash receipts and cash payments of an entity

According to FASBs conceptual frameowrk an entity's revenue may result fro an

D. decrease in a liability from primary operations

for $50 a month, rawl co visits its customers premises and performs insect control services. if customers experience problems between regularly scheduled visits, rawl makes service calls at no additional charge. instead of paying monthly customers may pay an annual fee of $540 in advance. for a customer who pays the annual fee in advance, rawl should recognize that related revenue

D. evenly over the contract year as the services are preformed

the primary purpose of the statement of financial position of a business is to reflect

D. items of value, debts, and net worth

according to FASB's conceptual framework, which of the following is an essential characteristic of a liability

D. liabilities represent an obligation that has arisen as the result of a previous transaction

the appropriate attribute for meauseing non current payable is

D. present value of future cash flows