GAAP emphasises the disclosure of economic substance over legal form by reportin
ID: 2818320 • Letter: G
Question
GAAP emphasises the disclosure of economic substance over legal form by reporting entities
True or False
The assumption of going concern is the assumption that an entity will continue operating indefinitely into the future.
True or False
According to the revenue realization principle, a firm will recognize revenue when it collects the balance in accounts receivable.
True or False
The issuance of treasury stock will increase earnings per share.
True or False
The indirect method of reporting the statement of cash flows is essentially a reconciliation between accrual based income to actual cash flow for the period.
True or False
The recognition of gross receipts on the income statement when the amount and timing of the revenue are reasonably determinable and the earnings process is complete is related to
Revenue realization principle
b. Periodicity assumption of financial reporting
c. Deferred revenue assumption of financial reporting
d. Cash basis of financial reporting
The amount of cash contributed by shareholders in excess of par value would be presented on which of the following lines of the balance sheet
a. Common stock
b.Total shareholder’s equity
c.Additional paid-in-capital
d.Preferred stock
Scotty Company has assets with a carrying value of $200,000 at the end of 2016. If the company originally spent $450,000 in total on these fixed assets, what is the balance in the accumulated depreciation account on December 31, 2016.
$200,000
$250,000
$450,000
$650,000
Which of the following is not classified as an intangible asset on the balance sheet.
Patent
Copyright
Stock in another company
Trademark
Yellow, Inc.’s 2015 balance sheet had $431,000 in retained earnings. In 2016, the company reported income of $246,000 and paid out dividends totaling $62,000. What is the balance of retained earnings on the 2016 year end balance sheet?
$419,000
$360,000
$491,000
$615,000
A.Revenue realization principle
b. Periodicity assumption of financial reporting
c. Deferred revenue assumption of financial reporting
d. Cash basis of financial reporting
Explanation / Answer
The amount of cash contributed by shareholders in excess of par value would be presented on which of the following lines of the balance sheet
c.Additional paid-in-capital
Scotty Company has assets with a carrying value of $200,000 at the end of 2016. If the company originally spent $450,000 in total on these fixed assets, what is the balance in the accumulated depreciation account on December 31, 2016.
=450000-200000=250000
b.
$250,000
Which of the following is not classified as an intangible asset on the balance sheet.
c.
Stock in another company
Yellow, Inc.’s 2015 balance sheet had $431,000 in retained earnings. In 2016, the company reported income of $246,000 and paid out dividends totaling $62,000. What is the balance of retained earnings on the 2016 year end balance sheet?
=431000+246000-62000=615000
d.
$615,000
P.S.: I am not allowed to answer more than 4 questions
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