Need help with Accounting homework!!! FASB or IASB?

1. Which component would allow a company to record the purchase of a $120 printer as an expense rather than capitalizing the printer as an asset?

2.

Donald Kirk, former chairman of the FASB, once noted that “ … there must be public confidence that the standard-setting system is credible, that selection of board members is based on merit and not the influence of special interests …” Which characteristic is implicit in Mr. Kirk's statement?

3.

Allied Appliances, Inc., changed its revenue recognition policies. Which characteristic is jeopardized by this change?

4.

National Bancorp, a publicly traded company, files quarterly and annual financial statements with the SEC. Which characteristic is relevant to the timing of these periodic filings?

5.

In general, relevant information possesses which qualities?

6.

When there is agreement between a measure or description and the phenomenon it purports to represent, information possesses which characteristic?

7.

Jeff Brown is evaluating two companies for future investment potential. Jeff's task is made easier because both companies use the same accounting methods when preparing their financial statements. Which characteristic does the information Jeff will be using possess?

8.

A company should disclose information only if the perceived benefits of the disclosure exceed the costs of providing the information. Which constraint does this statement describe?

3 Answers

Relevance
  • JKRB
    Lv 7
    8 years ago
    Favorite Answer

    1. Which component would allow a company to record the purchase of a $120 printer as an expense rather than capitalizing the printer as an asset?

    Materiality

    2.

    Donald Kirk, former chairman of the FASB, once noted that “ … there must be public confidence that the standard-setting system is credible, that selection of board members is based on merit and not the influence of special interests …” Which characteristic is implicit in Mr. Kirk's statement?

    Reliability

    3.

    Allied Appliances, Inc., changed its revenue recognition policies. Which characteristic is jeopardized by this change?

    Consistency

    4.

    National Bancorp, a publicly traded company, files quarterly and annual financial statements with the SEC. Which characteristic is relevant to the timing of these periodic filings?

    Time-period principle

    5.

    In general, relevant information possesses which qualities?

    Timely, useful, has predictive value, and is going to make a difference to a decision maker.

    6.

    When there is agreement between a measure or description and the phenomenon it purports to represent, information possesses which characteristic?

    Relevance

    7.

    Jeff Brown is evaluating two companies for future investment potential. Jeff's task is made easier because both companies use the same accounting methods when preparing their financial statements. Which characteristic does the information Jeff will be using possess?

    Comparability

    8.

    A company should disclose information only if the perceived benefits of the disclosure exceed the costs of providing the information. Which constraint does this statement describe?

    Materiality

    Source(s): Accounting Fan
  • Anonymous
    4 years ago

    Well, no, since I only have one account...but my main personality has taken my auxiliary personalities to task more than once for giving in to the temptation to be flippant or rude. That makes it sound like I have multiple personalities living inside my head, which isn't quite accurate in the medical sense. Spiritually speaking, I am an integrated whole, but you know how it is. There's the Bronwen who is serious, and the Bronwen who is silly, and the Bronwen who is annoyed and at times downright angry at a ridiculous question, often one posted by a hater. Serious Bronwen always reads a question and tells the other Bronwens to ignore it, but sometimes, late at night, when I am tired an my fuse is quite short, I find my way back to those questions, and a different Bronwen answers. And you're right--it's all an elaborate ruse to allow me to keep my dignity when I wake up in the morning and remember what I've done. Much like the person who wakes up in an unfamiliar bed after a party and blames it on the tequila, I, who rarely drink, must find an excuse. Perhaps I should start every night with just a small shot of something. At least then I would have alcohol in my system, and I could say to myself, "Well that was clearly written by the Bronwen who was drinking! I am absolved of all responsibility!" And that, I believe would be spiritually speaking in the most literal sense.

  • 4 years ago

    Can someone tell what is the right answer for this question?

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