Chapter 1
摩登家庭第一季
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1.Classify following items as either an expen (E),a revenue(R),an ast(A),or a liability( L);Cash, buildings, salaries of the sales force, $5 owed to a company for work performed, Mortgage to a bank, sales.
Answer:Cash—A Buildings—A Salaries of the sales force—E
$5 owed—L Mortgage to a bank—L Sales—R
2. Classify each of the following as n operating (O), bank (I) , or financing (F) in a statement of cash flows; Wage paid to workers, Cash received form a bank in the form of a mortgage, cash dividends paid to a supplier of inventory, Cash paid to purcha a new machine.
Answer:Wage paid—O Cash of mortgage-- F Cash dividends paid -- F
Cash paid to supplier of inventory—O Cash paid to purcha a machine—I
producer
Page11
1.List veral economic decisions that rely on accounting
小学三年级英语上册人教版information.
Answer:
·Whether to grant a loan
·How much to pay for a share of common stock.
·Whether to grant a rate increa to an electric utility
·How much in damages the lor of a lawsuit must pay
济宁招生考试信息网·How much of a bonus to pay a plant manager
·Whether to enter a new market
2. Why do financial statements have footnotes, and what kinds of information might you find in them?
Answer:
Financial statements have footnotes becau financial disclosure is a complex business. The notes tell us some of the specifics about the company environment , what accounting methods the company has ud, what the accounting numbers might be if alternative methods had been ud, and some of the major contingencies that are not formally included in the statement proper.
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aeis考试1.Describe the process of tting accounting standards. What are the roles of all the parties you mention?
Answer:
The FASB, a private, not-for-profit organization ,ts GAAP in the U.S. It publicly declares an agenda, promulgates "Exposure
Drafts" of propod standards, holds open meetings, and invites input from interested parties. The FASB has been delegated this authority by the SEC, a government agency with legal authority to determine GAAP.
2.Think of an example, like the executive compensation example in the chapter, where incentives mi
ght exist to bias accounting numbers one way or another.
Answer:
ticklingtvThere are other examples, but here is one that is different. A taxpayer has incentives to bias reported income downward in order to minimize income tax payments. However, it is important to understand that tax accounting rules are different from GAAP, and this book is about GAAP. Chapter 14 covers GAAP for taxes in more detail.
Other examples include:索赔的英文
·An entrepreneur eking a loan from a bank or funding from a venture capitalist might have incentives to bias accounting numbers to look favorable.
·A firm that is subject to scrutiny for earning excess ,an oil company）might have incentives to bias accounting numbers to look less favorable.
·A utility subject to rate regulation might have an incentive to
bias accounting numbers to look less favorable in order to gain more generous increas in its rates.
(At this writing, there is a rather vere controversy about whether electric utilities in California are genuinely in financial difficulty and should be allowed to continue to impo large rate increa.)
Chapter 2
Page 38
1 Define asts, liabilities, and equities.Gave an example of each.
How are asts valued? How are liabilities valued? Answer:
An ast is a probable future economic benefit obtained or controlled by an entity as a result of a past transaction. Cash marketable curities, accounts receivable, inventories, prepaid expens, patents, copyrights, trademarks, and property, plant and equipment are all examples of asts. A liability is
a probable future sacrifice of economic benefits arising from
prent obligations of an entity to transfer asts or provide rvices as a result of a past transaction or event. Accounts payable, accrued liabilities, unearned revenues, warranties, and bonds payable a
re all examples of liabilities.Accounting valuation of asts us veral different methods, including
market value, expected realizable value, lower of cost or market, prent value of future cash flows, and historical cost. Accounting valuation of liabilities is the expected amount that will be paid, perhaps adjusted for the time value of money.
2. Explain what is meant by the entity concept.
Answer:
The entity is the person or organization about which accounting's financial history is being written.
loneliness3 .A company signs a ten-year employee contract with a vice
president. The salary is $500000 per year, guaranteed. Is this contract an ast? W ould it appear on the balance sheet?
Explain.
Answer:
transcendent
The rights conveyed by the contrat may be an ast from an economic point of view, but they are not an ast under GAAP. The contract would not appear on the balance sheet as an ast, becau GAAP does not record executory contracts, which are contracts that require future performance form both parties. That is ,GAAP views the contract as determining what rvices will be provided, no ast is recognized under GAAP.(Neither is a liability for payment recognized until rvices have been
