chapter 5

Question 0

purchases method

Answer 0

inventories and prepaid costs in which goods or services are recorded when purchased

Question 1

consumption method

Answer 1

method of accounting for inventories and prepaid costs, in which goods or services are recorded as expenditures or expenses when used

Question 2

decreases in net financial resources under the modified accrual baisi of accounting

Answer 2

expenditures

Question 3

decreases in overall net assets from delivering services or producing goods under full accrual

Answer 3

expenses

Question 4

transactions or other events that are both unusual in nature and infrequent in occurrence

Answer 4

extraordinary items

Question 5

cash, investments and receivables, and other assets that can be expected ot be transformed into cash in the normal course of operations

Answer 5

financial resources

Question 6

internal equivalent of nonexchange transactions; transfers of cash for which goods or services of equivalent value have not been received.

Answer 6

nonreciprocal interfund activity

Question 7

item in a expenditure classification that relates to the type of goods or services obtained rather than to the prupse of the expenditure or nature of the activity it supports

Answer 7

object

Question 8

internal equivalent of exchange transactions in which the parties receive and surrender consideration

Answer 8

reciprocal interfund activity

Question 9

transactions or other events within the control of management that are significant and either unusual in nature or infrequent in occurrence

Answer 9

special items

Question 10

zero coupon bond

Answer 10

bond with a stated annual interest rate of zero. provides a return to investors issued at a price considerable less than the bond’s face value and sufficiently low so the difference between fv and issue price will equal a return comparable to conventional bonds