Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 10, Problem 16P
To determine
Identify the appropriate answer for the given statement from the given choices.
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For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list price
Which of the following is typically recorded at its present value?
a. long-term investments
b. long-term liabilities
c. intangible assets
d. contigent liabilities
Interest received and interest payments must be reported as operating cash flows using a. IFRS. b. U.S. GAAP. c. both U.S. GAAP and IFRS. d. neither U.S. GAAP nor IFRS.
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- Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payablearrow_forward1. What is the effect of the designation of a particular kind of current money payable?arrow_forwardThe system of using a monetary unit, such as the US dollar, to value the transaction is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionarrow_forward
- The "net book values" of fixed assets are stated on the balance sheet. Are these figures close to market prices for the same assets?arrow_forwardWhich information is reflected in the capital account of the balance of payments? a. Purchases and sales of stocks, bonds, bank accounts, real estate, and businesses. b. Purchases and sales of dollars, foreign exchange, gold, and special drawing rights. c. Export and import of goods and services. d. Capital transfers and the cross-border acquisition and disposal of natural resources and marketing assets.arrow_forwardWhich of the following statements is true for historical cost valuations? (Select one or more) a. Present value of cash flows using historical interest rates is an item in which cash receipts or cash payments will occur over time, these future cash flows are then discounted at the interest rate in effect at the time of the initial transaction. Balance sheet examples include notes receivable and notes payable. b. Acquisition cost is the amount paid initially to acquire the asset, examples include prepayments, land, and intangibles with indefinite lives. c. Acquisition cost is the amount paid initially to acquire the asset, examples include amounts invested in research and development for intellectual property. d. Adjusted acquisition cost is the amount paid initially to acquire an asset less accumulated depreciation and amortization, examples include equipment and intangible assets with limited lives.arrow_forward
- (5). Intangible assets are initially recorded at (a). cost (b). expected future value (c). expected present value of expected cash flows (d). present fair valuearrow_forwardList the valuation techniques currently used for the following items on the balance sheet and discuss why. Asset Measurement Basis Cash Accounts receivable Marketable securities Inventory Investments Property, plant, and equipment Noncurrent liabilitiesarrow_forwardDetailed explanationarrow_forward
- How should the amount of interest capitalized be disclosed in the notes to the financial statements? How should interest revenue from temporarily invested excess funds borrowed to finance the construction of assets be accounted for?arrow_forwardWhich of the following would trigger a subtraction in the indirect operating section? A. gain on sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payablearrow_forwardWhich statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.arrow_forward
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