Chapter 3, Problem 22E

7. How is the valuation of current assets affected if the company follows IFRS? Valuation is based on historical cost. OValuation is based on market adjustments. OValuation is based on LCM accounting. O Assets are expensed immediately.

If the going concern assumption is not made in accounting, discuss the differences in the amounts shown in the financial statements for the following items. a.    Land. b.    Unamortized bond premium. c.    Depreciation expense on equipment. d.    Inventory. e.    Prepaid insurance.

Please help with this Accounting type Question: Long term solvency is indicated by A. Asset Liability Ratio B. Debt Equity Ratio C. Interest Coverage Ratio D. All are correct

Which of the following statements is correct?   Options: • Going concern principle assume that in preparing the financial statements only properties, liabilities, income and expenses of a particular business are reported therein • The total value of debits in most cases is higher than the total value of credits • All accounting information must be free from error to be reliable • There is no effect in the amount of the accounting equation if an asset is changed into another form of asset

Directions: Indicate the effects of the transactions listed in the following table on total current assets, current ratio, and net income. Use (+) to indicate an increase, (−) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. (Note: A good accounting background is necessary to answer some of these questions; if yours is not strong, answer just the questions you can.)     Total Current Assets       Current Ratio       Effect on Net Income                         4. A fixed asset is sold for less than book value.                       + + - 5. A fixed asset is sold for more than book value.                       + + + 6. Merchandise is sold on credit                                         + + + 7. Payment is made to trade creditors for previous purchases.             - + 0 8. A cash…

Directions: Indicate the effects of the transactions listed in the following table on total current assets, current ratio, and net income. Use (+) to indicate an increase, (−) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. (Note: A good accounting background is necessary to answer some of these questions; if yours is not strong, answer just the questions you can.) Total current assets Current ratio Effect on net income 1.       Cash is acquired through issuance of additional common stock.       2.       Merchandise is sold for cash.       3.       Federal income tax due for the previous year is paid.       4.       A fixed asset is sold for less than book value.       5.       A fixed asset is sold for more than book value.       6.       Merchandise is sold on credit.…

The following statement describes an accounting concept. In conditions of uncertainty more confirmatory evidence is required about the existence of an asset or a gain than about the existence of a liability or a loss.' The accounting concept which governs the above is the • A. Accruals concept • B. Dual aspect concept C. Going concern concept D. Separate entity concept. E. Materiality concept F. Prudence concept'

Hi please assist

Case #4: Short answer questions - Accounting Concepts 1. (1) Describe the primary difference between cash basis and accrual basis accounting. (2) Identify the two primary principles/assumptions/constraints that allow for accrual basis accounting. 2. A common misconception of non-accountants is that accounting depreciation measures the deterioration in the value of an asset. (1) Identify the principle/assumption/constraint that necessitates the application of depreciation, (2) define it as completely as possible and (3) apply it by describing how the process of depreciation fits the definition. 3. A fellow staff auditor comments, "We don't need to make any record of that transaction because it does not amount to more than 5% of net assets. We can totally ignore it!" There are two misconceptions in this statement. (1) What principle/assumption/constraint is your colleague referring to? (2) Provide a short description of how he or she has misconstrued the concept. 4. Property, plant and…