Match the following definitions with terms 1 through 8. Place the letter that identifies the best definition in the blank space next to the term.____ 1. Generally accepted accounting principles____ 2. Time period assumption____ 3. Statement of retained earnings____ 4. Balance sheet____ 5. Income statement____ 6. Measurement (Cost) principle____ 7. Securities and Exchange Commission____ 8. IASB____ 9. Full disclosure principle____ 10. Statement of cash flowsa. Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.b. Describes a company's revenues and expenses and computes net income or loss over a period of time.c. An independent group consisting of individuals from many countries that identify preferred accounting practices.d. Presumes that the life
of a company can be divided into periods for reporting purposes.e. The concepts and rules that govern financial accounting.f. A financial statement that reports the changes in equity over the reporting period, excluding stockholder investments.g. A report that identifies cash receipts and cash payments over a period of time.h. Prescribes that a company report the details behind financial statements that would impact user decisions.i. The governmental agency that has the legal authority to establish accounting rules.j. A report that describes a company's financial position at a point in time.
What will be an ideal response?
1. E; 2. D; 3. F; 4. J; 5. B; 6. A; 7. I; 8. C; 9. H; 10. G
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If the cash flows of an accepted investment project are negatively correlated with the average cash
flow of the firm's existing assets, then the company's total exposure to risk can decrease. Indicate whether the statement is true or false
Mark McCormick is planning to buy a home by making a $12,000 down payment. He will finance the remaining $110,000 of the home's selling price with a 25 year mortgage at a 7% rate. His monthly mortgage payment will be $777.46. How much will Mark have paid at the end of the 25 year mortgage?
If property received as a gift has a basis of the fair market value of the property on the date of the gift, the donee's holding period starts on the day after the date of the gift.
Answer the following statement true (T) or false (F)