10. The amounts of individual assets that make up total assets, represented by accounts receivable,
inventories, equipment, and other assets, reflect a firm’s financing decisions, each measured at the
balance sheet date.
, 14. Current liabilities and shareholders’ equity are sources of funds where the supplier of
funds does not expect to receive them all back within the next year.
15. The current replacement cost of an asset is the amount a firm would have to pay to obtain another asset
with identical service potential; it is an entry value that reflects economic conditions at the
measurement date.
16. The same asset can have different measurements for tax purposes, for financial reporting purposes, and
for internal managerial decision-making purposes.
18. The managers of a business prepare financial statements to present meaningful information
about that business’s activities to external users.
ANS: T PTS: 1 DIF: 1 REF: p. 20 | p. 23
OBJ: LO: 1-03 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom's: Knowledge
19. The independent external auditors of a business prepare financial statements to present meaningful
information about that business’s activities to external users.
ANS: F PTS: 1 DIF: 1 REF: p. 20 | p. 23
OBJ: LO: 1-03 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom's: Knowledge
20. Management operates the productive capacity of the firm to generate earnings.
ANS: T PTS: 1 DIF: 1 REF: p. 20 | p. 23
OBJ: LO: 1-03 NAT: BUSPROG: Analytic
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller evileye251. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.25. You're not tied to anything after your purchase.
