Balance Sheet and Disclosure Overview

Question 1

GAAP and IFRS require the presentation of a ______ balance sheet that distinguishes current and noncurrent assets and liabilities

Answer 1

classified

Question 2

Stockholder’s equity =

Answer 2

contributed capital

Question 3

Capital stock (preferred & common) and paid-in-capital in excess of par are _______ stockholders equity

Answer 3

contributed

Question 4

Retained earnings & accumulated other comprehensive income is _______ generated stockholders equity

Answer 4

internally

Question 5

Treasury stock is a ______ equity

Answer 5

contra

Question 6

GAAP and IFRS require that a description of all ______ _______ be included as an integral part of the financial statements

Answer 6

significant policies

Question 7

“Summary of Significant Accounting Policies” are included in the _____ or _____ note

Answer 7

first; second

Question 8

IFRS require a explicit and unreserved ______ __ ______ with IFRS. GAAP does not

Answer 8

statement of compliance

Question 9

Measurement bases, accounting principles, criteria, policies, and pricing are:

Answer 9

significant accounting policies

Question 10

IFRS requires the disclosure of ____ and _____ that management has made in the process of applying accounting policies

Answer 10

judgments; estimates

Question 11

GAAP requires disclosure of ______ _______, but does not require the disclosure of ______

Answer 11

significant estimates; judgement

Question 12

Basis of consolidation, depreciation & amortization methods, inventory pricing, accounting for recognition of profit on long-term construction contracts, recognition of revenue from franchising or leasing operations are:

Answer 12

accounting policies described in the Summary of Significant Accounting Principles

Question 13

Composition of accounts & amounts in dollars of balances, changes in accounting principles, dates of maturity & amounts of long-term debt, yearly computation of depreciation, amortization, and depletion are:

Answer 13

not included in the accounting policies footnote

Question 14

Remaining notes in the financial statements contain all other information ________ to the decision makers

Answer 14

relevant

Question 15

Related party transactions require _______

Answer 15

disclosure

Question 16

Principal owners are not mentioned as related parties in ______

Answer 16

IFRS

Question 17

____ does not require disclosure of allowance for bad debts, bad debt expense, or write-offs related to amounts due from related parties

Answer 17

GAAP

Question 18

____ does not require disclosure of key management compensation arrangements

Answer 18

GAAP

Question 19

______ “risk and uncertainty” disclosure requirements are narrower and focus on sources of estimation uncertainty

Answer 19

IFRS