Question 1

Firms recognize the reduction in service potential of assets such as patents and trademarks using the process of ____________________.

Accepted Answer

The answer of Firms recognize the reduction in service potential...

Question 2

Items, such as interest revenue on municipal bond holdings, that do not affect taxable income or income taxes paid in any year are referred to as _____________________________________________.

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The answer of Items, such as interest revenue on municipal...

Question 3

The difference between income tax payable and income tax expense is reported on the balance sheet as either a(n) ______________________________ or a(n) _______________________________.

Accepted Answer

The answer of The difference between income tax payable and...

Question 4

The amount that a company would have to pay today to acquire an asset it now holds is called ________________________________________.

Accepted Answer

The answer of The amount that a company would have...

Question 5

What valuation methods reflect current values? Discuss the advantage(s) and disadvantage(s) of valuing assets and liabilities using current values.

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Question 6

Refer to the Balance Sheet Equation . To recognize the cost of goods sold ORP Corporation will reduce retained earnings and reduce ______________________________.

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Question 7

Refer to Balance Sheet Equation. The payment of a note payable by a firm reduces cash and ______________________________.

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Question 8

Acquisition costs includes all costs necessary to get an asset ready for its _________________________.

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The answer of Acquisition costs includes all costs necessary to...

Question 9

Refer to Balance Sheet Equation. ORP Corporation Purchases land for $9,000 cash and 1,000 shares of common stock values at 10 per share. This transaction results in ORP recording a decrease in cash of $9,000, an increase in non-cash assets of $ 19,000, and an increase in ______________________________ of $10,000

Accepted Answer

The answer of Refer to Balance Sheet Equation. ORP Corporation...

Question 10

Discuss the three ways in which GAAP allows value changes to be treated in the financial statements. Provide an example of each value change treatment.

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Question 11

Refer to Balance Sheet Equation. JCP Company purchased marketable securities for $5,000 during the year, at the end of the year the company revalues the securities to $5,700. This revaluation would result in an increase to non-cash assets and ____________________________________________________________.

Accepted Answer

The answer of Refer to Balance Sheet Equation. JCP Company...

Question 12

____________________ assets and liabilities represent amounts of cash a firm can expect to receive or pay in the future.

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Question 13

Stockholders' equity can be expanded into the following three accounts: Accumulated other comprehensive income, retained earnings and _________________________________________________________________.

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Question 14

Balance Sheet Equation
  Refer to the Balance Sheet Equation . If ORP Corporation sells $25,000 of its product on account, it will see an increase in non-cash assets and ___________________________________.

Accepted Answer

The answer of Balance Sheet Equation
  Refer to the...

Question 15

What valuation methods reflect historical cost? Discuss the advantages and disadvantages of valuing assets and liabilities using historical valuations.

Accepted Answer

The answer of What valuation methods reflect historical cost? Discuss...

Question 16

A change in the _________________________ or _________________________ will not change a preset series of cash flows, however it will change the present value of those cash flows.

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The answer of A change in the _________________________ or _________________________...

Question 17

Revenues and expenses that firms include in both net income to shareholders and in taxable income, but in different periods are referred to as _____________________________________________.

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The answer of Revenues and expenses that firms include in...

Question 18

________________________________________ is the net amount that a firm would receive if it sold an asset or the net amount it would have to pay to settle a liability.

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The answer of ________________________________________ is the net amount that a...

Question 19

The amount initially paid to acquire an asset is called ______________________________.

Accepted Answer

The answer of The amount initially paid to acquire an...

Question 20

Net income equals revenues plus ____________________ minus expenses and ____________________.

Accepted Answer

The answer of Net income equals revenues plus ____________________ minus...

Quiz 2: Asset and Liability Valuation and Income Recognition