1.1 General Reporting for Profit Entity

Question 1

What Measurement do you use for Account type: “Receivables”?

Answer 1

Net realizable Value

Question 2

What Measurement do you use for Account type: “inventory” ?

Answer 2

Lower of cost or market, or lower of cost or net realizable Value

Question 3

What Measurement do you use for Account type: “ Investments in marketable securities”?

Answer 3

Market Value

Question 4

What Measurement do you use for Account type: “ Property, Plant, Equipment ?”

Answer 4

Historical Cost and depreciated/amortized Historical cost

Question 5

What Measurement do you use for Account type: “ Liabilities”

Answer 5

Present Value

Question 6

What Measurement do you use for Account type: “ Equity”

Answer 6

historical value of cash inflows and residual valuation

Question 7

What “adds “ to the Retained Earnings account ?

Answer 7

Net Income (beginning balance + new balance)

Question 8

What “subtracts” from the Retained Earnings account ?

Answer 8

Dividends paid out; Net Loss; Treasury Stock purchase.

Question 9

What is the Additional Paid in Capital (APIC)?

Answer 9

the difference between Par Value and Issue Price