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

Net income equals revenues plus ____________________ minus expenses and ____________________.

Accepted Answer

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

Question 3

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

Question 4

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 5

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 6

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 7

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 8

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 9

________________________________________ 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 10

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 11

____________________ 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 12

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 13

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 14

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 15

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.

Accepted Answer

The answer of Discuss the three ways in which GAAP...

Question 16

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...

Question 17

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

Accepted Answer

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

Question 18

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 19

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 20

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...

Quiz 2: Asset and Liability Valuation and Income Recognition

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

Net income equals revenues plus minus expenses 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.

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

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

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

________________________________________ 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.

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.

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

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

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

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.

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

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

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 _____________________________________________.

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

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