no resale value 12. Which of the following does not meet the definition of an asset? a Equipment that the entity intends, and is very certain, to acquire in the future. b. Inventories purchased and received but not yet paid. c Land received from a donation. d. A publishing title for a college textbook. The publishing title has no physical substance, meaning you cannot see or touch it.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
97
Concpteal Fram
The economic resource can be distributed to the owners.
d. The resource has no use in the entity's operations and has
no resale value
12. Which of the following does not meet the definition of an
asset?
a. Equipment that the entity intends, and is very certain, to
acquire in the future.
b. Inventories purchased and received but not yet paid.
c Land received from a donation.
d. A publishing title for a college textbook. The publishing
title has no physical substance, meaning you cannot see or
touch it.
13. Entity A determined that an asset exists. However, the asset's
low probability of inflows of economic benefits and its very
high level of measurement uncertainty affected Entity A's
recognition decisions about the asset, as these raised doubt on
whether the asset's recognition would result in useful
information. Consequently, Entity A did not recognize the
asset, but because Entity A deemed it relevant, information
about the asset was nonetheless provided in the notes. Which
of the following statements is correct?
a. Entity A's accounting treatment is grossly incorrect
because, according to the Conceptual Franiework, all items
that meet the definition of an asset should always be
recognized, regardless of the asset's potential to produce
economic benefits and its measurement uncertainty.
b. Entity A's treatment for the asset is acceptable. The asset
referred to as an 'unrecognized' asset.
C. Entity A's treatment for the asset is acceptable. The asset is
referred to as a 'non-existent asset.
d. Entity A's non-recognition of the asset is correct. However,
the asset should have been completely ignored as
providing information about unrecognized items in the
notes is not acceptable under the Conceptual Framework.
Transcribed Image Text:97 Concpteal Fram The economic resource can be distributed to the owners. d. The resource has no use in the entity's operations and has no resale value 12. Which of the following does not meet the definition of an asset? a. Equipment that the entity intends, and is very certain, to acquire in the future. b. Inventories purchased and received but not yet paid. c Land received from a donation. d. A publishing title for a college textbook. The publishing title has no physical substance, meaning you cannot see or touch it. 13. Entity A determined that an asset exists. However, the asset's low probability of inflows of economic benefits and its very high level of measurement uncertainty affected Entity A's recognition decisions about the asset, as these raised doubt on whether the asset's recognition would result in useful information. Consequently, Entity A did not recognize the asset, but because Entity A deemed it relevant, information about the asset was nonetheless provided in the notes. Which of the following statements is correct? a. Entity A's accounting treatment is grossly incorrect because, according to the Conceptual Franiework, all items that meet the definition of an asset should always be recognized, regardless of the asset's potential to produce economic benefits and its measurement uncertainty. b. Entity A's treatment for the asset is acceptable. The asset referred to as an 'unrecognized' asset. C. Entity A's treatment for the asset is acceptable. The asset is referred to as a 'non-existent asset. d. Entity A's non-recognition of the asset is correct. However, the asset should have been completely ignored as providing information about unrecognized items in the notes is not acceptable under the Conceptual Framework.
most likely
atfect
the
14. Which of the following will
a.
inflows or outflows of future economic bene
b.
asset or liability.
An unresolved dispute over a right or obligation
c.
possibly resuit in
a. the recognition of an income.
b. the recognition of an expense.
c an increase in total equity.
d. no change in total equity.
PROBLEM 4: MULTIPLE CHOICE
1. The Conceptual Framework is least applicable in which of u
following cases?
a. to account for a transaction that is specitically dealt wiu
by a Standard
b. in resolving issues not addressed directly by a Standard
in developing Standards
d. in analyzing and interpreting Standards
C.
2. General purpose financial statements are designed to
a. meet all the information needs of the primary users.
b. meet all of the common needs of all primary users.
meet most of the common needs of most primary users.
d. meet none of the needs of users of financial information.
C.
3. These are users of financial information who are not in a
position to require a reporting entity to prepare reports
tailored to their particular information needs.
2.) all of the Following ave events considered dl&
nhireictim of the entity's own equity instrument (ie. contrihehons by ownes)
inidered nonedpocal kansper escept.
Transcribed Image Text:most likely atfect the 14. Which of the following will a. inflows or outflows of future economic bene b. asset or liability. An unresolved dispute over a right or obligation c. possibly resuit in a. the recognition of an income. b. the recognition of an expense. c an increase in total equity. d. no change in total equity. PROBLEM 4: MULTIPLE CHOICE 1. The Conceptual Framework is least applicable in which of u following cases? a. to account for a transaction that is specitically dealt wiu by a Standard b. in resolving issues not addressed directly by a Standard in developing Standards d. in analyzing and interpreting Standards C. 2. General purpose financial statements are designed to a. meet all the information needs of the primary users. b. meet all of the common needs of all primary users. meet most of the common needs of most primary users. d. meet none of the needs of users of financial information. C. 3. These are users of financial information who are not in a position to require a reporting entity to prepare reports tailored to their particular information needs. 2.) all of the Following ave events considered dl& nhireictim of the entity's own equity instrument (ie. contrihehons by ownes) inidered nonedpocal kansper escept.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Borrowing costs
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education