11.The eight phases of the joint FASB and IASB framework project are: 1) objective and qualitative characteristics, 2) elements and recognition, 3) presentation and disclosure, 4) reporting entity, 5) measurement, 6) framework for GAAP hierarchy, 7) applicability to the not-for-profit sector, and 8) any remaining issues needing to be addressed. a.True b.False 12.Three phases of the convergence project were put on hold they were elements and recognition, measurement, and presentation and disclosure. a.True b.False 13.Which of the following statements is not true with regard to the benefits derived from the FASB's conceptual framework of accounting? a.It serves as a guide […]

63.Which of the following statements regarding the accounting for a common stock investment using the equity method is incorrect?  A. The equity method is used for investments of ownership between 20% and 50% of the outstanding voting stock when the investor has the ability to exert significant influence. B. The investment account is increased by the proportionate share of affiliate net income. C. The investment account is decreased by the proportionate share of affiliate dividends. D. Investment income equals the proportionate share of affiliate dividends. 64.Significant influence over the operating and financial policies of another company would not be indicated […]

61.Agnes Company reported the following data: Quick assets$55,000 Current assets150,000 Total liabilities 300,000 Average net receivables12,600 Beginning inventory38,000 Long-term liabilities200,000 Net credit sales 126,000 Cost of goods sold84,000 Ending inventory46,000 What was the inventory turnover ratio?  A. 2.2 B. 1.8 C. 2.0 D. 3.0 62.Agnes Company reported the following data: Quick assets$55,000 Current assets150,000 Total liabilities 300,000 Average net receivables12,600 Beginning inventory38,000 Long-term liabilities200,000 Net credit sales 126,000 Cost of goods sold84,000 Ending inventory46,000 What was the average number of days to sell inventory?  A. 165.9 B. 202.7 C. 182.5 D. 121.7 63.The operating cycle includes the number of days […]

1.A problem arising from equal information is called information asymmetry. a.True b.False 2.The demand for relevant and reliable financial information stems from the needs of the internal and external stakeholders. a.True b.False 3.The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and assist in the formation of capital. a.True b.False 4.The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies, exchanges, and investors. a.True b.False 5.The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the Accounting Principles Board (APB). a.True b.False […]

112.Walker Company uses the accrual basis of accounting. Walker Company's wages expense account had a $610,000 balance at the end of the year. The wages payable account had a $23,000 balance at the beginning of the year and a $45,000 balance at the end of the year. How much cash was paid for wages during the year? a. $588,000 b. $610,000 c. $632,000 d. $555,000 113.Slater Company uses the cash basis of accounting. Slater Company collected $950,000 from its customers during 2015. Customers owed Slater $150,000 of accounts receivable at the beginning of 2015, and $190,000 of accounts receivable at […]