Exam 4: The Balance Sheet and the Statement of Shareholders Equity

Mark to Market is another name for fair value accounting which has becoming increasingly popular with U.S. GAAP for the valuation of gains and losses associated with assets and liabilities.

Certain differences exist between IFRS and U.S. GAAP financial statement reporting. Which of the following is false?

Trademarks or acquired brand names are not amortized but are reviewed annually for impairment.

What three processes must be completed in order for the elements of the balance sheet to be reported by a specific company?

The following is from the financial reports of Sledge Company: Required: Calculate the following to three decimal places: Calculate the following to three decimal places: a)Fixed Asset Turnover b)Total Asset Turnover c)Accounts Payable Turnover d)Accounts Payable Turnover in Days e)Accounts Receivable Turnover f)Accounts Receivable Turnover in Days

A friend comes to you with a set of financial statements that he thinks contains an error. The footnotes contain a note on a bond issue sold after the end of the reporting period. Your friend is sure this is an error because the transaction occurred after the cutoff date for the financial statements. Required: Explain to your friend why certain items that occur after the end of an accounting period are included in the financial statements and the manner in which they can be disclosed.

GAAP disclosures for fair value measurements now require that fair value measurements using Level 3 inputs include all of the following except

Which of the following account titles are not allowed under GAAP?

From what two perspectives does the balance sheet report the financial position of a company?

In order for an external user of a company's financial statements to fully understand the in workings of the company, their accounting policies, practices, and methods must be disclosed. The disclosure of revenue recognition and asset allocations is important. When is it particularly important for this information to be disclosed?

To be recognized in the financial statements, an item must meet the definition of an element and be

Information about a company's operating capability may be helpful to external users in

Which of the following statements is false regarding the hierarchy of fair value measurements now provided in GAAP?

Exhibit 4-1 Given the following information for Blue Bell Company: -Refer to Exhibit 4-1. Blue Bell's current ratio at December 31, 2014 was

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 replacement cost c. fair value d. net realizable value e. present value 1.The amount of cash into which an asset is expected to be converted, less any expected conversion costs. 2.The amount of cash that would be required to obtain the same asset on the date of the balance sheet. 3.The net amount of discounted expected cash flows relating to the asset. 4.The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation. 5.The amount of cash paid for the asset when it was originally acquired. Required: Match each measurement alternative with its descriptive statement by placing the appropriate letter in the space provided.

A comparison of a company's performance with that of its competitors is known as

Which of the following is not included in comprehensive income?

A reader might find information about gain contingencies in an annual report by examining

A leased asset under capital lease is disclosed on the balance sheet at its

Under IFRS, liabilities and shareholders' equity on the balance sheet usually appear in which order?