Question 1

Net income equals revenues plus ____________________ minus expenses and ____________________.

Accepted Answer

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

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 _____________________________________________.

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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 5

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

Accepted Answer

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

Question 6

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 7

Balance Sheet Equation
 
-Refer to Balance Sheet Equation.ORP Corporation Purchases land $9,000 cash and 1000 shares of common stock values at 10 per share.This transaction results in ORP recording an decreasein cash of $9,000,an increase in non-cash assets of $ 19,000 and a increase in ______________________________ of $ $10,000

Accepted Answer

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

Question 8

The application of GAAP requires firms to write down assets whose fair values decrease below their book values,but does not allow firms to revalue upward the values of assets whose fair values have increased.This asymmetric treatment rests on the ________________________________________.

Accepted Answer

The answer of The application of GAAP requires firms to...

Question 9

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

Accepted Answer

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

Question 10

________________________________________ 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.

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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 Balance...

Question 13

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

Accepted Answer

The answer of ____________________ assets and liabilities represent amounts of...

Question 14

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

Accepted Answer

The answer of Stockholders' equity can be expanded into the...

Question 15

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.

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

Balance Sheet Equation
 
-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 Balance Sheet Equation
 
-Refer to Balance Sheet...

Question 18

The difference between income tax payable and income tax expense is reported on the balance sheet as either ___________________________________ or a ___________________________________.

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

The answer of What valuation methods reflect current values? Discuss...

Quiz 2: Asset and Liability Valuation and Income Measurement

Net income equals revenues plus minus expenses and .

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 _____________________________________________.

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

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

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

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

The application of GAAP requires firms to write down assets whose fair values decrease below their book values,but does not allow firms to revalue upward the values of assets whose fair values have increased.This asymmetric treatment rests on the ________________________________________.

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

________________________________________ 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.

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

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 ___________________________________.

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

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

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.

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

The difference between income tax payable and income tax expense is reported on the balance sheet as either _ or a _.

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

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