中级财务会计Chapter01AssignmentsandAnswers.docxVIP

Select the best answer for each of the following. M1-1 Accruing net losses on noncancelable purchase commitments for inventory is an example of a. Conservatism b. Realization c. Consistency d. Materiality M1-2 The information provided by financial reporting pertains to a. Individual companies, rather than to industries or the economy as a whole or to members of society as consumers. b. Individual companies and industries, rather than to the economy as a whole or to members of society as consumers. c. Individual companies and the economy as a whole, rather than to industries or to members of society as consumers. d. Individual companies, industries, and the economy as a whole, rather than to members of society as consumers. M1-3 According to Statement of Financial Accounting Concepts No. 2, an interim earnings report is expected to have which of the following? Predictive Feedback value value a. No No b. Yes Yes c. Yes No d. No Yes M1-4 A patent, purchased in 2007 and being amortized over a 10-year life, was determined to be worthless in 2010. The write-off of the asset in 2010 is an example of which of the following principles? a. Associating cause and effect b. Immediate recognition c. Systematic and rational allocation d. Objectivity M1-5 An accrued expense is an expense a. Incurred but not paid c. Paid but not incurred b. Incurred and paid d. Not reasonably estimable M1-6 Which of the following accounting concepts states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified individuals to arrive at essentially similar measures and conclusions? a. Matching b. Verifiability c. Periodicity d. Stable monetary unit M1-7 Which of the following is considered a pervasive constraint of providing financial information by Statement of Financial Accounting Concepts No. 2? a. Benefits/costs b. Conservatism c. Timeliness d. Verifiability M1-8 The valuation of a promise to receive cash in the future at pre