Exam 4: The Balance Sheet and the Statement of Shareholders 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 the general accounting requirements for financial instruments to your friend.

The quantity of goods or services produced in a given period or the physical capacity of the operating assets used to produce goods or services are measures of

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

The ordering of the financial statements are similar under U.S. GAAP and IFRS, assets are listed based upon liquidity, current and then long term.

Exhibit 4-1 Given the following information for Blue Bell Company: -Refer to Exhibit 4-1. Blue Bell's accounts receivable turnover for 2014 was

What is FASB's Statement of Financial Accounting Concepts No. 6 definition of investments by owners and distributions to owners?

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

Which is classified as a long-term investment?

Intercompany comparison is used to evaluate a company's performance against key competitors within related industries or fields.

The ease with which an asset can be converted into cash is termed

Which of the following would typically be recorded as an intangible asset with a finite useful life?

If the shareholders' equity at the end of the accounting period is greater than the shareholders' equity at the beginning of the accounting period, the firm's

The expected exit value is also referred to as the

What is FASB's definition of fair value?

Current liabilities would include all of the following except

Listed below are ten terms describing the purposes of the balance sheet. Following the list is a series of descriptive phrases. a. financial position b. balance sheet c. income statement d. liquidity e. financial flexibility f. operating capability g. assets h. acquisition cost i. control j. recognition 1.Process of recording and reporting an element in the financial statements 2.Economic resources 3.Ability of a company to use its financial resources to adapt to change 4.Economic resources, economic obligations, equity, and their relationship to each other at a point in time 5.Amount of time until an asset is converted into cash or a liability is paid 6.The ability to deny or regulate the use of an asset 7.The financial position of the company as reported on a specific date 8.Ability of a company to maintain a given physical level of operations 9.Is measured in terms of changes in assets and liabilities 10.Historical cost of an asset Required: Match each term with its descriptive phrase by placing the appropriate letter in the space provided.

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

Changes in the separate shareholders' equity accounts can be disclosed in all of the following ways, except a

Discuss how intracompany and intercompany comparisons help fulfill the qualitative characteristics of consistency and comparability.

The ability of a company to adapt its resources to create change and react to change is called