Intermediate Accounting Chap 1,2,3 Hw
Derek Greenfield
Intermediate Accounting I
3/2/2012
CA1-1.) 1. True 2. False, must comply with all standards and interpretations including disclosure requirements 3. True 4. False, FASB must operate in full view of public through a “due process” system that gives interested parties ample opportunity to make their views known
CA1-3.)
1. D 2. A 3. D 4. B 5. A 6. B 7. A 8. B
E2-5.)
Assets- F
Liabilities- B
Equity- I
Investment by owners- C
Distribution to owners- D, K
Comprehensive Income- L, G, E, C
Revenue- J, H
Expenses- H
Gains- A
Losses- A
E2-7.) a. Fair value changes are not recognized in the accounting records.
HISTORICAL COST PRINCIPLE b. Financial information is presented so that investors will not be misled.
FULL DISCLOSURE PRINCIPLE c. Intangible assets are capitalized and amortized over periods benefited.
MATCHING PRINCIPLE d. Repair tools are expensed when purchased.
MATERIALITY
e. Agricultural companies use market value for purposes of valuing crops.
INDUSTRY PRACTICES f. Each enterprise is kept as a unit distinct from its owner or owners.
ECONOMIC ENTITY ASSUMPTION g. All significant post-balance sheet events are reported.
FULL DISCOSURE PRINCIPLE h. Revenue is recorded at point of sale.
REVENUE RECOGNITION PRINCIPLE i. All important aspects of bond indentures are presented in financial statements.
FULL DISCLOSURE PRINCPLE j. Rationale for accrual accounting.
MATCHING PRINCIPLE k. The use of consolidated statements is justified.
ECONOMIC ENTITY ASSUMPTION l. Reporting must be done at defined time intervals.
PERIODICITY ASSUMPTION m. An allowance for doubtful accounts is established.
MATCHING PRINCIPLE n. Goodwill is recorded only at time of purchase.
HISTORICAL COST PRINCIPLE o. A company charges its sales commission costs to expense.
MATCHING PRINCIPLE
E3-1
April 2 Cash 30,000
Intermediate Accounting I
3/2/2012
CA1-1.) 1. True 2. False, must comply with all standards and interpretations including disclosure requirements 3. True 4. False, FASB must operate in full view of public through a “due process” system that gives interested parties ample opportunity to make their views known
CA1-3.)
1. D 2. A 3. D 4. B 5. A 6. B 7. A 8. B
E2-5.)
Assets- F
Liabilities- B
Equity- I
Investment by owners- C
Distribution to owners- D, K
Comprehensive Income- L, G, E, C
Revenue- J, H
Expenses- H
Gains- A
Losses- A
E2-7.) a. Fair value changes are not recognized in the accounting records.
HISTORICAL COST PRINCIPLE b. Financial information is presented so that investors will not be misled.
FULL DISCLOSURE PRINCIPLE c. Intangible assets are capitalized and amortized over periods benefited.
MATCHING PRINCIPLE d. Repair tools are expensed when purchased.
MATERIALITY
e. Agricultural companies use market value for purposes of valuing crops.
INDUSTRY PRACTICES f. Each enterprise is kept as a unit distinct from its owner or owners.
ECONOMIC ENTITY ASSUMPTION g. All significant post-balance sheet events are reported.
FULL DISCOSURE PRINCIPLE h. Revenue is recorded at point of sale.
REVENUE RECOGNITION PRINCIPLE i. All important aspects of bond indentures are presented in financial statements.
FULL DISCLOSURE PRINCPLE j. Rationale for accrual accounting.
MATCHING PRINCIPLE k. The use of consolidated statements is justified.
ECONOMIC ENTITY ASSUMPTION l. Reporting must be done at defined time intervals.
PERIODICITY ASSUMPTION m. An allowance for doubtful accounts is established.
MATCHING PRINCIPLE n. Goodwill is recorded only at time of purchase.
HISTORICAL COST PRINCIPLE o. A company charges its sales commission costs to expense.
MATCHING PRINCIPLE
E3-1
April 2 Cash 30,000