FAR 5 Review 1

The joint FASB and IASB -------------------------- is intended to establish a common set of objectives and fundamental concepts to be used as a basis for developing financial accounting an reporting guidance

The joint FASB and IASB conceptual framework is intended to establish a --------------------------------- and fundamental concepts to be used as a basis for developing financial accounting an reporting guidance

A transaction that is unusual but not infrequent should be reported --------------------- as a component of continuing operations (gross) but not net of applicable income taxes

A transaction that is unusual but not infrequent should be reported separately as a component of ---------------------------------- (gross) but not net of applicable income taxes

A transaction that is unusual but not infrequent should be reported separately as a component of continuing operations (gross) but -------- of applicable income taxes

Financial reporting by a --------------------------------------- differs from financial reporting for established operating enterprise in regard to (more extensive) footnote disclosures only.

Financial reporting by a development stage enterprise differs from financial reporting for established operating enterprise in regard to (------------------------) footnote disclosures only.

Financial reporting by a development stage enterprise differs from financial reporting for established operating enterprise in regard to (------------------------) footnote disclosures only.

---------------------------- should be disclosed when it is reasonably possible (not probable) that the estimate will change in the near term and that the effect of the change will be material.  Immaterial items are not disclosed.

Significant estimates should be disclosed when it is --------------------------------- (not probable) that the estimate will change in the near term and that the effect of the change will be material.  Immaterial items are not disclosed.

Significant estimates should be disclosed when it is reasonably possible (not probable) that the estimate will change in the ----------------- and that the effect of the change will be material.  Immaterial items are not disclosed.

Significant estimates should be disclosed when it is reasonably possible (not probable) that the estimate will change in the near term and that the effect of the change will be -------------------.  Immaterial items are not disclosed.

Cumulative currency translation adjustments are reported in other -----------------------------.

Cumulative currency ---------------------- adjustments are reported in other comprehensive income.

Cumulative currency --------------------- adjustments are reported in other comprehensive income.

A ---------------------- adjustment for the correction of an error should be reported as an after tax adjustment to beginning retained earnings

A prior period adjustment for the correction of an -------------- should be reported as an after tax adjustment to beginning retained earnings

A prior period adjustment for the correction of an error should be reported as an -------------------------------- to beginning retained earnings

A prior period adjustment for the correction of an error should be reported as an after tax adjustment to --------------------------

when a change in accounting principle is considered inseparable from a change in estimate, the change is handled as a ------------------------------- - prospectively.  No cumulative effect adjustment is made.

when a change in accounting principle is considered --------------------- from a change in estimate, the change is handled as a change in estimate - prospectively.  No cumulative effect adjustment is made.

when a change in accounting principle is considered inseparable from a change in estimate, the change is handled as a change in estimate - -------------------------.  No cumulative effect adjustment is made.

when a change in accounting principle is considered inseparable from a change in estimate, the change is handled as a change in estimate - prospectively.  No ------------------------adjustment is made.

when a -------------- is sold (voluntarily or involuntarily) gain or loss is recognized as part of income from continuing operations.  The amount of the gain or loss is equal to the difference between the proceeds from the sale and the carrying amount of the fixed asset sold or converted.

when a fixed asset is sold (voluntarily or involuntarily) gain or loss is recognized as part of income from continuing operations.  The amount of the gain or loss is equal to the difference between the proceeds from the sale and the -------------------------- of the fixed asset sold or converted.

when a fixed asset is sold (voluntarily or involuntarily) gain or loss is recognized as part of income from continuing operations.  The amount of the gain or loss is equal to the difference between the --------------------------------- and the carrying amount of the fixed asset sold or converted.

when a fixed asset is sold (voluntarily or involuntarily) gain or loss is recognized as part of income from ---------------------.  The amount of the gain or loss is equal to the difference between the proceeds from the sale and the carrying amount of the fixed asset sold or converted.

foreign currency translation gains and losses are reported in other comprehensive income and recognized as a separate component of ----------------------- equity.

foreign currency translation gains and losses are reported in ------------------------------ and recognized as a separate component of stockholders equity.

foreign currency ------------------ gains and losses are reported in other comprehensive income and recognized as a separate component of stockholders equity.

Under US GAAP research and development costs should be ------------------

Under --------------------- research and development costs should be expensed

----------------------- should be recognized in the period in which they were earned and realized or realizable.

Revenues should be recognized in the period in which they were --------------- and realized or realizable.

under the --------- of accounting revenue is recognized when the cash is collected

research and development costs are ------------------------ whether they are incurred internally or by contract with outside firms under US GAAP

research and development costs are expensed whether they are incurred internally or by contract with ------------------- under US GAAP

under the --------------------------- revenue is recognized after cash equaling the cost of the item is collected.

under the cost recovery method revenue is recognized after ------------------ the cost of the item is collected.

under the --------------------------- gross profit is recognized as a gross profit percentage times the cash collected from the sale

under the installment method ----------------- is recognized as a ----------------- percentage times the cash collected from the sale

under the -------------------- common stock dividends are recorded as a a reduction to the investment account

under the equity method ---------------------- dividends are recorded as a a reduction to the investment account

under the equity method common stock dividends are recorded as a a ------------------ to the investment account

with acquisition accounting the net asses acquired are based on fair market value.  the fair value of finished goods and merchandise inventory are based upon selling price less disposal costs and a -----------------------------.

with acquisition accounting the net asses acquired are based on -------------------.  the fair value of finished goods and merchandise inventory are based upon selling price less disposal costs and a reasonable profit allowance.

with -------------------------------- the net asses acquired are based on fair market value.  the fair value of finished goods and merchandise inventory are based upon selling price less disposal costs and a reasonable profit allowance.

the fair value of raw materials should be based upon -------------------------

The tempory decline of an available for sale marketable equity securities portfolio below aggregate cost should be reported as a ----------------------------- in the asset section of the balance sheet

The ----------------- decline of an available for sale marketable equity securities portfolio below aggregate cost should be reported as a valuation allowance in the asset section of the balance sheet

The tempory decline of an --------------------- marketable equity securities portfolio below aggregate cost should be reported as a valuation allowance in the asset section of the balance sheet

The tempory decline of an available for sale marketable equity securities portfolio below aggregate cost should be reported as a valuation allowance in the ---------------------------------------

when a permanent impairment occurs the book value is ---------------- and a loss is recorded.  the loss is credited to accumulated depreciation.

when a permanent impairment occurs the book value is reduced and a loss is recorded.  the loss is credited to ----------------------------.

The --------------------------- method adjust inventory retail prices and ending inventory cost for price level changes

The dollar value LIFO method adjust inventory retail prices and ending inventory cost for ----------------------

an overstatement of ------------------------- will cause an understandment of cost of goods sold which will result in an overstatement of gross profit.

an overstatement of ending inventory will cause an ------------------------- of cost of goods sold which will result in an overstatement of gross profit.

an overstatement of ending inventory will cause an understandment of cost of goods sold which will result in an -------------------------- of gross profit.

Under IFRS if a revalued asset becomes impaired the impairment is recorded by first reducing any revaluation surplus to zero, with further impairment losses reported on the -----------------------------.

Under IFRS if a revalued asset becomes impaired the impairment is recorded by first reducing any ------------------------- to zero, with further impairment losses reported on the income statement.

a collection of a --------------------------------- would increase the allowance account which is a credit balance account

a ------------------- of a previously written off account receivable would increase the allowance account which is a credit balance account

a collection of a previously written off account receivable would --------------- the allowance account which is a credit balance account

the interest payable on a bond is calculated by taking the ------------------ of the bond at the begging of the period and multiply this amount by the contractual interest rate

the interest payable on a bond is calculated by taking the face value of the bond at the begging of the period and multiply this amount by the ------------------------------