Exam 4: Balance Sheet: Presenting and Analyzing Resources and Financing

The acquisition cost for nonmonetary assets includes

The criteria for liability recognition include(s):

Which of the following is/are true about amounts received from shareholders for the firm's shares when the firm first issued them?

Describe Asset recognition, definition, and measurement.

Accounting does not normally recognize mutually unexecuted contracts as assets or liabilities.

Which of the following is/are true regarding the "reliability" of a reported amount?

Investors would view measurements that reflect current conditions as the most relevant for making investment decisions.

The principal objective of accounting reports as currently prepared is to present ______ the results of operations and the financial condition of the firm.

Discuss shareholders' equity, how it is measured and disclosed.

The amounts reported on the balance sheet for assets, liabilities, and shareholders' equity reflect current market conditions.

One can analyze the financial health of a business from a single financial statement considered in isolation such as the balance sheet.

The balance sheet imperfectly describes both resources and financing (claims on those resources).Explain why applying asset and liability definitions and recognition criteria under U.S.GAAP and IFRS does not result in the balance sheet including all economic benefits (resources) and obligations.

In a rising stock market, the result of any subsequent sale of a firm's previously issued common shares from one investor to another (such as occurs on public stock exchanges):

U.S.GAAP explicitly defines _____ of an asset as "the price that would be received to sell an asset [or paid to transfer a liability] in an orderly transaction between market participants at the measurement date." Thus, U.S.GAAP defines it as an exit value, namely, the amount the firm would receive if it sold an asset in an orderly, arm's-length transaction at the measurement date.

At December 31, Year 1, Bolton Corporation has par value common stock with a par value of $1.50 per share, Additional paid-in capital of $60,000, total shareholders' equity of $100,000, and retained earnings of $25,000.What is the number of common stock shares?

The measurement of the assets and liabilities on the balance sheet also determines the measurement of ______________.

An investor can easily ascertain the _____ of common equity for a given publicly traded firm by looking up the most recent share price (as reported in various online services) and then multiplying this share price times the number of common shares outstanding, as reported on the balance sheet.

Assets of one firm can correspond to the liabilities of another firm.For example, an account receivable on the seller's balance sheet is an account payable on the buyer's balance sheet. Required: For each of the following items, indicate whether it is an asset or a liability and give the corresponding account title on the balance sheet of the other party to the transaction: a.Bonds Payable. b.Interest Receivable. c.Prepaid Insurance. d.Rental Fees Received in Advance. e.Advances from Customers.

The value of fixed assets (such as plant, property, and equipment) included in total assets on the statement of financial position is the

Calcas Corporation, a Portuguese company, has an adjusted trial balance that contained the following asset accounts at December 31, 2013: Cash €7,000; Land €40,000; Patents €12,500; Accounts Receivable €90,000; Prepaid Insurance €5,200; Inventory €30,000; Allowance for Doubtful Accounts €4,000; Trading Securities €11,000. Required: Prepare the current assets section of the statement of financial position, using most common IFRS sequence of accounts.