What were the reasons for the failure of ARS 1 and ARS 3?
What will be an ideal response?
ANSWER:
ARS 1 and ARS 3 failed for several reasons including the following:
(1) The accounting profession would not abandon historical cost.
(2) The postulates and principles were not complete and therefore could not exclude all value systems other than the one prescribed in the principles.
(3) At least one principle (related to profit recognition) was not derived from any of the postulates.
(4) The question of whether valuations of various assets were additive became an issue.
(5) The authors were commissioned to find those postulates and principles that would lead to “true income.” It has since become evident that no income measurement can be deemed to have such an advantage over competing concepts.
(6) They occurred at a time when little formal attention was given to opportunities to react to potential accounting rules for those who will be subject to them.
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Which of the following variable interests entitles a holder to residual profits, losses, and dividends?
A. Lease residual value guarantees B. Common stock C. Asset purchase options D. Subordinated debt instruments E. Participation rights
While science is not yet able to describe the phenomenon of "thinking" in physical terms, we can be certain that it is a process involving the metabolism of brain cells. With positron emission tomography (PET scan) it is possible to inject short-lived isotopes and image the regions of the brain that have the most active metabolism during various mental activities. For different mental functions, different regions and amounts of nerve cells become active. However,
A. the cellular energy expended in "thinking" must be less than the chemical bond energy supplied in food to these brain cells. B. since thoughts can occur over and over, the requirement for a continual input of energy to prevent entropy does not apply to this cell activity. C. "thought" cannot be linked to cell processes because energy is not related to matter. D. "thinking" is beyond the scope of science to study.
Answer the following statements true (T) or false (F)
1.Benefits provide an incentive to employees to continue working for an organization because they feel as if they are being cared for by the organization. 2.Social Security is formally called Old-Age, Survivors, and Disability Insurance. 3.Unemployment Insurance is an insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness. 4.Minor health condition means an illness, injury, impairment, or physical or mental condition that involves either inpatient care or continuing care for at least 3 consecutive days. 5.Patient Protection and Affordable Care Act is a law that requires employers to offer to maintain health insurance for a period of time on individuals who leave their employment.
Value is some type of utility that a company and its products provide for customers.
Answer the following statement true (T) or false (F)