5110 accounting - Study guides, Class notes & Summaries

Intangible assets desire their value from the right (claim) to receive cash in the future - t/f - ANSFalse Internally generated intangible assets are initially recorded at fair value - t/f - ANSFalse Limited-life intangibles are amortized by systematic charges to expense over their useful lives - t/f - ANSTrue Amortization of limited life intangible assets should not be affected by expected residual values - t/f - ANSFalse Some intangible assets are not required to be amortized -...

which of the following does not describe intangible assets? a. they lack physical existence b. they are financial instruments c. they provide long-term benefits d. they are classified as long-term assets - ANSthey are financial instruments which of the following characteristics do intangible assets possess? a. physical existence b. claim to a specific amount of cash in the future c. long-lived d. held for resale - ANSlong-lived which characteristic is not possessed by intangible ...

Role of financial accounting - ANSto identify, measure, and report relevant and reliable financial information about companies to present and potential future stakeholders Who are stakeholders? - ANSStakeholders are parties with an interest in a company and are impacted by companies decision. Ex; shareholders, banks, creditors, managers, customers, etc. Separation of Ownership and Control - ANSthe need to bridge the gap between the principals (investors) and agents (management) creates...

EDGAR System - ANSimproves efficiencies with which company information is collected and disseminated EDGAR System - ANSprimary purpose increase efficiency and fairness of the securities market for benefit of investors, corporations and the economy by accelerating the receipt, acceptance, corporate information filed with the agency Balance sheet - ANSpurpose to report a company's fiancial position on a particular date Balance sheet arrangement - ANSbased on common characteristics ...

What is meant by the phrase efficient allocation of resources? What mechanism fosters the efficient allocation of resources in the United States? - ANSResources are efficiently allocated if they are given to enterprises that will use them to provide goods and services desired by society and not to enterprises that will waste them. The capital markets are the mechanism that fosters this efficient allocation of resources. What is the primary objective of financial accounting? - ANSThe primary...

Companies' motivations for investing in debt or equity securities issued by other companies: - ANS1) To earn a high rate of return 2) To secure certain operating or financing arrangements with another company How to provide useful information - ANSCompanies account for investment based on the type of security (debt or equity) and their intent with respect to the investment. Debt securities - ANSFinancial securities that represent a creditor relationship with another entity. Examples a...

Role of financial accounting - ANSto identify, measure, and report relevant and reliable financial information about companies to present and potential future stakeholders Who are stakeholders? - ANSStakeholders are parties with an interest in a company and are impacted by companies decision. Ex; shareholders, banks, creditors, managers, customers, etc. Separation of Ownership and Control - ANSthe need to bridge the gap between the principals (investors) and agents (management) creates...

A guide to assignment on merger and financial ratios with advanced calculations performed on Excel worksheet. All calculations are correct

Companies' motivations for investing in debt or equity securities issued by other companies: - ANS1) To earn a high rate of return 2) To secure certain operating or financing arrangements with another company How to provide useful information - ANSCompanies account for investment based on the type of security (debt or equity) and their intent with respect to the investment. Debt securities - ANSFinancial securities that represent a creditor relationship with another entity. Examples a...

economic events - ANScause changes in the fianancial position of the company external events - ANSinvolve an exchange between company and separate economic entity purchase inventory for cash internal events - ANSdo not involve exchange btw company and separate economic entity (depreciation on eqpt or use of supplies) the accounting cycle - ANSunderlies the process used to capture the effect of economic events Assets= liabilities + stock holder's equity - ANSthe accounting c...