Question 1

Which of the following is not a concept of income identified by Bedford?

Accepted Answer

A) Psychic 
B) Real 
C) Investment 
D) Money 
A) Psychic 
B) Real 
C) Investment 
D) Money

Question 2

Uncertainty and risks inherent in business situations should be adequately considered in financial reporting.This statement is an example of the concept of

Accepted Answer

A) Conservatism 
B) Completeness 
C) Neutrality 
D) Representational faithfulness 
A) Conservatism 
B) Completeness 
C) Neutrality 
D) Representational faithfulness

Question 3

Discuss the four types of income defined by Edwards and Bell.

Accepted Answer

The four types of income defined by Edwa

Question 4

In the transactions approach to income determination,income is measured by subtracting the expenses resulting from specific transactions during the period from revenues of the period also resulting from transactions.Under a strict transactions approach to income measurement,which of the following would not be considered a transaction?

Accepted Answer

A) Sale of goods on account at 20 percent markup 
B) Exchange of inventory at a regular selling price for equipment 
C) Adjustment of inventory in lower of cost or market inventory valuations when market is below cost. 
D) Payment of salaries 
A) Sale of goods on account at 20 percent markup 
B) Exchange of inventory at a regular selling price for equipment 
C) Adjustment of inventory in lower of cost or market inventory valuations when market is below cost. 
D) Payment of salaries

Question 5

One concept of income suggests that income be measured by determining the net change over time in the discounted present value of net cash flow expected to be received by the firm.Under this concept of income,which of the following,ignoring income taxes would not affect the amount of income for a period?

Accepted Answer

A) Providing services to outsiders and investments of the funds received 
B) Production of goods or services not yet sold not yet delivered to customers or clients. 
C) Windfall gains and losses due to external causes. 
D) The method used to depreciate property,plant and equipment. 
A) Providing services to outsiders and investments of the funds received 
B) Production of goods or services not yet sold not yet delivered to customers or clients. 
C) Windfall gains and losses due to external causes. 
D) The method used to depreciate property,plant and equipment.

Question 6

Arid Lands,Inc.,is engaged in extensive exploration for water in the Caprock Desert.If upon discovery of water the corporation does not recognize any revenue from water sales until the sales exceed the costs of exploration,the basis of revenue recognition being employed is the

Accepted Answer

A) Production basis 
B) Cash or collection)basis 
C) Sales or accrual)basis 
D) Sunk cost or cost recovery)basis 
A) Production basis 
B) Cash or collection)basis 
C) Sales or accrual)basis 
D) Sunk cost or cost recovery)basis

Question 7

Discuss the matching concept.

Accepted Answer

Once a company has fulfilled its crucial

Which of the following is not a concept of income identified by Bedford?

Uncertainty and risks inherent in business situations should be adequately considered in financial reporting.This statement is an example of the concept of

Discuss the four types of income defined by Edwards and Bell.

Arid Lands,Inc.,is engaged in extensive exploration for water in the Caprock Desert.If upon discovery of water the corporation does not recognize any revenue from water sales until the sales exceed the costs of exploration,the basis of revenue recognition being employed is the

Discuss the matching concept.

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 5: Income Concepts,revenue Recognition and Matching

Which of the following is not a concept of income identified by Bedford?

Uncertainty and risks inherent in business situations should be adequately considered in financial reporting.This statement is an example of the concept of

Discuss the four types of income defined by Edwards and Bell.

Arid Lands,Inc.,is engaged in extensive exploration for water in the Caprock Desert.If upon discovery of water the corporation does not recognize any revenue from water sales until the sales exceed the costs of exploration,the basis of revenue recognition being employed is the

Discuss the matching concept.

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters