Exam 4: The Balance Sheet and the Statement of Changes in Stockholders Equity

With all of the turmoil in the financial markets in 2008, one of your friends has emailed you because she has been wondering about the financial disclosure requirements for the banks and brokerage firms affected by the market turbulence.Explain to your friend the general accounting requirements for financial instruments.

Which statement is not true?

Certain differences exist between IFRS and U.S.GAAP financial statement reporting.These include that

Which of the following liabilities is properly classified as a current liability?

Which statement is false?

Individual assets are measured using one of five alternative methods.These methods are listed below, followed by a series of descriptive statements. a. historical cost b. current cost c. exit value d. netrealizable value e. present value Required: Match each measurement alternative with its descriptive statement by placing the appropriate letter in the space provided.

The FASB has suggested guidelines for developing homogenous classes of assets and liabilities.For assets, this can be accomplished by following guidelines that include

On January 1, 2010, Martinez Corporation had the following stockholders' equity account balances: Accumulated other comprehensive income \ 30,000 Additional paid-in capital on common stock 80,000 Common stock, \ 5 par ( 30,000 shares authorized) 50,000 Retained earnings 140,000 During 2010, the following events occurred in the order listed and were properly recorded: The company issued 3,000 shares of common stock at $\$ 20$ per share. The company earne dnet income of $\$ 26,300$ . The company paid a $\$ 1.20$ per share dividend on its common stock The company experienced an unrealized decrease in the value of its investment in available-for-sale securities of $\$ 3,000$ Required: Prepare a statement of changes in stockholders' equity for 2010.

Which statement is true?

Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as

On the balance sheet, treasury stock is classified as a(n)

Which is classified as a long-term investment?

The valuation method primarily used in the balance sheets of business entities is

Current liabilities are defined as

The balance sheet contains the major sections (a-k)listed below.A listing of balance sheet accounts (1-12)follows. Required: Using the letters (a-k), indicate in which section of the balance sheet each of the accounts (1-12)would be classified.Put parentheses around the letter used if it represents a contra account.If the account does not appear on the balance sheet, place an "X" in the space provided.

Probable future sacrifices of economic benefits arising from past transactions or events are

The balance sheet account that is usually reported at its fair market value is