Question

Put on X in the box of the element associated with the items below

Inv by

Dist to

Compr

Assets

Liabilities

Equity

Owners

Owners

Income

Revenues

Expenses

Gains

Losses

1

Paid in Capital

2

Service Revenue

3

Interest Receivable

4

Rent

5

Loss on sale of investment

6

Accounts Payable

7

Dividends

8

Preferred Stock Issued

9

Gain on sale of equipment

Put on X in the box of the assumption, principle, or constraint associated with the items below

Economic

Going

Monetary

Measure-

Revenue

Expense

Full

Equity

Concern

Unit

Periodicity

ment

Recognition

Recognition

Disclosure

Cost

10

Fixed assets are capitalized and

expensed over period benefited

11

Owners transactions are kept

separate from company transactions

12

Officer salaries are charged to the

current period

13

Important accounting policies are

in notes to financial statements

14

Financial instruments are reported

at fair value

15

Public companies report yearly

and quarterly to the SEC

16

Fixed assets are reported in $

ignoring inflation

17

Assets are assigned to either short

or long-term

18

Revenue transactions are reported

when performance is complete

19

Costs and benefits of collecting

data is considered

20

Target includes the activities of its

subsidiaries for reporting purposes

Put on X in the box of the qualitative characteristic associated with the items below

Predictive

Confirmatory

Complete-

Free from

Compara-

Consist-

Verifia-

Timeli

Under-

Value

Value

Materiality

ness

Neutrality

Error

bility

ency

bility

ness

standability

21

Nike uses the FIFO method

each year

22

Info is more relevant when it is

available early to influence decisions

23

Relative size and importance of items

help determine their treatment

24

Users can confirm or correct

prior expectations

25

Suntrust includes all information

needed to assess loan asset values

26

Coke and Pepsi report revenue

in a similar manner

27

Info is presented clearly so users

can utilize for decision making

28

Information is free from bias

29

Users can predict amount, timing,

and uncertainty of future cash flows

30

Auditors arrive at the same

inventory valuation

Answer 1