1.01 BALANCE SHEET

Question 1

Heading of Balance Sheet

Answer 1

Dated as of a specific date

Question 2

Purpose of Balance Sheet

Answer 2

Assesses the company’s liquidity and financial flexibility

Question 3

Deposits and prepayments received for goods or services to be provided in the future are considered

Answer 3

Liability

Question 4

When calculating total retained earnings, prepaid taxes

Answer 4

are moved to an expense and subtracted

Question 5

Legal forms of business combinations

Answer 5

Consolidation, Merger, Acquisition

Question 6

Generally Accepted Accounting Principles

Answer 6

encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time

Question 7

Accruals are concerned with

Answer 7

expected future cash receipts and payments

Question 8

Deferrals are concerned with

Answer 8

past cash receipts and payments

Question 9

Historical Cost

Answer 9

the purchase price of an item

Question 10

Fair Value

Answer 10

the price from an orderly transaction between market participants

Question 11

Replacement Cost

Answer 11

the cost to exchange an item at today’s prices

Question 12

NRV

Answer 12

the estimated amount of cash an item can be converted into

Question 13

Assets must meet the definition of

Answer 13

is an economic resource, controlled by the entity, has probable future benefit, and results from a past event

Question 14

A refundable payment is a

Answer 14

asset

Question 15

If income tax expense is not recorded

Answer 15

do not include in current assets