72. Arpco, Inc., a for-profit provider of healthcareservices, recently purchased two smaller companiesand is researching accounting issues arising from thetwo business combinations. Which of the followingaccounting pronouncements are the most authorita-tive?a. AICPA Statements of Position.b. AICPA Industry and Audit Guides.c. FASB Statements of Financial Accounting Con-сepts.d. FASB Statements of Financial Accounting Stan-dards.73. During the year, Public College received the fol-lowing:An unrestricted $50,000 pledge to be paid thefollowing year.A $25,000 cash gift restricted for scholarships.A notice from a recent graduate that the collegeis named as a beneficiary of $10,000 in thatgraduate's will.What amount of contribution revenue should PublicCollege report in its statement of activities?а. $25,000.b. $35,000.c. $75,000.d. $85,000.74. A voluntary health and welfare organization re-ceived a $700,000 permanent endowment during theyear. The donor stipulated that the income and in-vestment appreciation be used to maintain its seniorcenter. The endowment fund reported a net invest-ment appreciation of $80,000 and investment incomeof $50,000. The organization spent $60,000 to main-tain its senior center during the year. What amount ofchange in temporarily restricted net assets should theorganization report?a. $50,000b. $70,000c. $130,000d. $770,000

Note: As per our guidelines, only the first question can be answered 72. Arpco is covered by GAAP…

72. Arpco, Inc., a for-profit provider of healthcare services, recently purchased two smaller companies and is researching accounting issues arising from the two business combinations. Which of the following accounting pronouncements are the most authorita- tive? a. AICPA Statements of Position. b. AICPA Industry and Audit Guides. c. FASB Statements of Financial Accounting Con- cepts. d. FASB Statements of Financial Accounting Stan- dards.

72. Arpco, Inc., a for-profit provider of healthcare services, recently purchased two smaller companies and is researching accounting issues arising from the two business combinations. Which of the following accounting pronouncements are the most authorita- tive? a. AICPA Statements of Position. b. AICPA Industry and Audit Guides. c. FASB Statements of Financial Accounting Con- cepts. d. FASB Statements of Financial Accounting Stan- dards.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.13E

See similar textbooks

Similar questions

9. Which of the following least describes the relatedness of Accounting and Financial Management? A) Both functions take into consideration accountability. B) Both are concerned with the proper preparation and presentation of Financial Statement. C) Both are concerned with the relevance and timeliness of financial information. D) Both deals primarily with financing and investing decisions. 10. Which of the following does not pertain to a Limited Liability Company (LLC) or Limited Liability Partnership (LLP) A) The owners of an LLC are referred to as members, and these owners may be individuals, partnerships, corporations, or other entities. B) LLC is not considered a form of business for tax purposes so it must file as a corporation, partnership, or sole proprietorship. C) Both special type of form of business may enjoy the benefits of limited liability. D) LLCs and LLPs are de facto businesses and are not legally accepted forms of business organization. 11. Which of the following is…
The following table shows key operating statistics for the four largest public accounting firms: Revenue Split U.S. Net No. of No of. Accounting and Tax Management Revenues (in millions) Partners Professional Staff Auditing Consulting PricewaterhouseCoopers $8,056 2,784 33454 35% 19% 46% Deloitte & Touche 6,130 2,283 20,472 33 21 35 Ernst & Young 4,485 1,934 13,871 58 39 0 KPMG 3,171 1,471 10,438 62 38 0 Source: "PAR Top 100 Report," Public Accounting Report, Aspen Publishers. a. Determine the revenue per partner and revenue per professional staff for each firm. Round to the nearest dollar. b. Interpret the differences between the firms in terms of your answer in (a) and the table information.
Which is not a purpose of the conceptual framework?a. To provide definitions of key terms and fundamental concepts.b. To provide specific guidelines for resolving situations not covered by existing accounting standards.c. To assists accountants in selecting among alternative accounting and reporting methods.d. To assists the International Accounting Standards Board in standard-setting process. 37. Which of the following statements regarding the conceptual framework is incorrect?a. The conceptual framework is concerned with general-purpose financial statements.b. The conceptual framework applies to financial statements of business reporting enterprises both inthe private sector and in the public sectorc. In cases where there is conflict between the conceptual framework and PFRS, the requirement of theconceptual framework will prevaild. The conceptual framework deals with concepts of capital
115-Assume that you are a consultant in a private accounting firm that provide consultancy to the companies by charging fee. There is seminar where you are given the task to explain the main purpose of the conceptual framework related to financial statements only. So, which of the following points you will choose to present? a. It helps in international accounting standard board in overall development b. It helps in setting national standards in developing countries c. It helps auditor about making any opinion about various statements d. All of the options
110-is the choice of accounting methods, techniques and policy decisions made with in the organizations. a. Normative accounting theory b. All of the options c. Activists accounting theory d. Positive accounting theory
A current issue before the Financial Accounting Standards Board (FASB) is whether accounting standards should be moving from rule-based standards to principle-based standards. Rule-based standards provide specific measurements guidelines that are currently used to classify investment securities (for example, less than 20%, from 20% to 50%, and over 50%). Principle-based standards rely on general principles such as significant influence or control of a company, without any more detailed guidelines. You are the chief financial officer for a large corporation, and FASB just issued a request for comment on a proposed change from the current standard to a principle-based standard. Choose the standard that best meets the business need and justify your choice. Evaluate and defend whether your choice would change if you were an investor in the company.
The following items appear on Brueggen Company's financial statements. 1. Under the caption Assets: Pension asset/liability. 2. Under the caption Liabilities: Pension asset/liability. 3. Under the caption Stockholders' Equity: Prior service cost as a component of Accumulated Other Comprehensive Income. 4. On the income statement: Pension expense. Instructions Explain the significance of each of the items above on corporate financial statements. (Note: All items set forth above are not necessarily to be found on the statements of a single company.
Using Republic Financial Holdings 2022 annual report, Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate
In 1984 the FASB released Statement of Financial Accounting concepts No. 5 "Recognition and Measurement in Financial Statements of Business Enterprises." Required: Summarize the major provisions of this pronouncement
Every annual report of a public company includes an extensive discussion and analysis provided by thecompany’s management. Specifically, which aspects of the company must this discussion address? Isn’tmanagement’s perspective too biased to be of use to investors and creditors?