Exam 4: Statements of Financial Position and Changes in Equity; Disclosure Notes

Public companies must identify their various operating segments when each of them contributes to at least what percentage of total revenues?

If current assets exceed current liabilities,payments on current liabilities will:

Monetary items are usually fixed in amount while non-monetary items are not.

Which of the following loss contingencies ordinarily will NOT be accrued as liabilities?

The shareholders' equity section of a consolidated statement of financial position shows the shareholder equity attributable to the parent.

The designation "reserve for bad debts" is an appropriate alternative title for "allowance for doubtful accounts".

Liabilities such as contingent liabilities that are not probable,or are probable but not measurable,do not qualify for recognition in the financial statements.

"Reserve for depreciation" is an appropriate alternative designation for "accumulated depreciation".

Preferred shares which guarantee the shareholder only a fixed annual dividend should be classified as:

Assets and liabilities on the balance sheet are valued at:

If the operating cycle of a business is fifteen months,which of the following statement is true?

Most balance sheets do not have a separate caption "Deferred Credits" because they are disclosed under liabilities or owners' equity.

When the account receivable of an individual customer has a credit balance of a material amount,this amount:

All assets having any future benefit to the company will be disclosed on the Balance Sheet.

A company's main inventory warehouse burned down a few days after the company's fiscal year end - well before the financial statements for the last year were issued.The company's insurer will only cover a portion of the estimated losses.Given this event,what should the company do from an accounting/financial reporting standpoint?

Other Contributed Capital can arise when shares are retired for more than the original amount paid for the shares.

A deficit is synonymous with:

Under ASPE,Biological Assets are shown separately from Property,Plant & Equipment at their Fair Value less costs to sell.

Owners' Equity items are classified and presented based on time to maturity.

Contingent losses should only be accrued if it is likely that a loss will arise due to events that existed at the date of the financial statements and the loss can be reasonably estimated.