Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.7E
Rules-versus Principles-Based Accounting. Review the following statements and indicate if the statement is referring to a principles-based or a rules-based accounting standard.
| Statement. An accountant will use a particular accounting standard only if ... | Principles-Based or Rules-Based Accounting Standard |
| a. ... the length of a contract covers substantially all of the useful life of a plant asset. | a. ____________________ |
| b. ... the number of new common shares a firm issues is equal to 20% of the previously outstanding shares. | b. ____________________ |
| c. ... a corporation owns over 50% of the voting shares of an affiliate company. | c. ____________________ |
| d ... a corporation has the ability to control the operating and financing activities of an affiliate company. | d. ____________________ |
| e. ... it is more likely than not that a company’s tax position will be sustained upon examination by the Internal Revenue Service. | e. ____________________ |
| f. . .. the sum of the undiscounted future |
f. ____________________ |
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Chapter 1 Solutions
Intermediate Accounting (2nd Edition)
Ch. 1 - Prob. 1.1QCh. 1 - Prob. 1.2QCh. 1 - How is the allocation of capital linked to the...Ch. 1 - Prob. 1.4QCh. 1 - What is the function of the accounting standard...Ch. 1 - Can U.S. companies listen on U.S. stock exchanges...Ch. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.1BECh. 1 - Prob. 1.2BECh. 1 - Financial Statement Users and Other Parties...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.5BECh. 1 - Economic Entity. What is an economic entity?Ch. 1 - Prob. 1.7BECh. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.12BECh. 1 - Financial Accounting. Define financial accounting...Ch. 1 - Prob. 1.2ECh. 1 - Convergence of Accounting Standards, IFRS Vikram...Ch. 1 - History of Standard Setting in the United States....Ch. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Rules-versus Principles-Based Accounting. Review...
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