Flag question: Question 32 What is discontinued operation? Group of answer choices -no longer operable and fall under asset -result of the operation which has been disposed or classified by the entity as held for sale -no longer consider part of balance sheet -consider disposable and need to be calculate as part of retained earnings

Flag question: Question 32 What is discontinued operation? Group of answer choices -no longer operable and fall under asset -result of the operation which has been disposed or classified by the entity as held for sale -no longer consider part of balance sheet -consider disposable and need to be calculate as part of retained earnings

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 1EA: Match the correct term with its definition. A. cost principle i. if uncertainty in a potential...

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What is net income? Group of answer choices -part of asset -Calculate the asset and liabity -part of the financial statement which calculate equity -part of financial statements, which contains the results of its operations during an accounting period. Flag question: Question 32 What is discontinued operation? Group of answer choices -no longer operable and fall under asset -result of the operation which has been disposed or classified by the entity as held for sale -no longer consider part of balance sheet -consider disposable and need to be calculate as part of retained earnings Flag question: Question 33 Why is budget important? Group of answer choices -It gives stakeholder good information about financial statement; -provide a good orderly management activities within an organization; -it is important to create balance sheet; -It is useful to manage liabilities. Flag question: Question 34 What is a flex budget?…
1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell 2.) An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held for sale’, is recorded in: A. Income from continuing operations B. Equity C. Income from discontinued operations D. Secret
True or False Pls indicate if the statements are true or false. 1. The worksheet eliminations prepared subsequent to acquisition remove the allocated excess/purchase differential amortizations from the consolidated financial statements. 2. Allocated excess/purchase differential amortizations result in the Investment Income account disclosing the income that would have been allocated to the parent had the subsidiary’s financial records disclosed the market value of its assets and liabilities. 3.
3. Statement 1: All allocated excess/purchase differentials are amortized.Statement 2: The worksheet eliminations prepared subsequent to acquisition remove the allocated excess/purchase differential amortizations from the consolidated financial statements. a. Only statement 1 is trueb. Only statement 2 is truec Both statements are trued. Both statements are false
When an asset is held for sale: Question 10 options: the asset is remeasured at the lower of carrying (book) value and fair value less costs to sell. it must related to discontinued operations. the company continues to record depreciation on the asset. the asset is remeasured at the lower of fair value and carrying (book) value. The matching principle is best demonstrated by: Question 11 options: measuring expenses correctly. not recognizing any expenses until some revenue has been received. recognizing prepaid rent as revenue. associating effort (expenses) with accomplishment (revenues).
Match the correct term with its definition. A. cost principle i. if uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount B. full disclosure principle ii. also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition C. separate iii. (also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated. D. monetary iv. business must report any business activities that could affect what is reported on the financial statements E. conservatism v. system of using a monetary unit by which to value the transaction, such as the US dollar. F. revenue vi. period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized. G. expense vii. business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally.
1(a) State with reason whether the following statements are true or false (i) Change in Method of Depreciation is regarded as change in Accounting Policy of the entity. (ii) Depreciation is non-cash and non- operating expense which is to be provided for whether there are profits/losses. (iii) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth. (iv) Contingent liability is an ascertained liability but its amount and due date are indeterminate. (v) Fundamental Assumptions are always required to be disclosed in the financial statements.
Question 9 Phillips Corporation sold a fixed asset used in its operations for greater than its carrying amount. Phillips should report the transaction in the income statement using the: A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section of the income statement. B. Net concept, showing the total amount as a component of other comprehensive income, net of taxes. C. Net concept, showing the total gain as part of discontinued operations, net of taxes. D. Net concept, showing the total gain as part of continuing operations , not net of taxes.
Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation B. Assets with physical traits, such as property or equipment C. Assets not recorded on the Balance Sheet, such as customer loyyalty or intellectual property D. Assets that were added to the company in the most recent annual report E. Assets that depreciate at an accelerated rate
True or False 1. When there is a change in the plan to sell a held for sale asset, that asset is reclassified back to its previous classification and measured at its carrying amount before it was classified as held for sale, adjusted for any depreciation, amortization or revaluation that would have been recognized had the asset not been classified as held for sale. 2. Profit from continuing operation does not include extraordinary items, discontinued operations, or cumulative effects of changes in accounting principles. 3. A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. 4. A component of an entiry can be cash generating unit or group of cash generating units. Use the following information for the next two questions: An entity, a brewer of beer, has three major product lines - Brand A, Brand B and Brand C. Each product line comprises…
(CO 3) An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset. Which statement is true with respect to the year following the year in which the transfer occurred? Group of answer choices A worksheet entry is made with a debit to gain for a downstream transfer. A worksheet entry is made with a debit to gain for an upstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method. A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment. No worksheet entry is necessary.
Match the correct term with its definition.A. Cost principlei. if uncertainty in a potential financial estimate, a company should err on the side ofcaution and report the most conservative amount B. Full disclosureprinciple ii. also known as the historical cost principle, states that everything the company ownsor controls (assets) must be recorded at their value at the date of acquisition C. Separateentity concept iii. (also referred to as the matching principle) matches expenses with associatedrevenues in the period in which the revenues were generated D. Monetarymeasurementconcept iv. business must report any business activities that could affect what is reported onthe financial statements E. Conservatismv. system of using a monetary unit by which to value the transaction, such as the USdollar F. Revenuerecognitionprinciple vi. period of time in which you performed the service or gave the customer theproduct is the period in which revenue is recognized G. Expenserecognitionprinciple…