ACC 577 ACC577 Week 1 Quiz (STRAYER)

ACC 577 Week 1 Quiz

1. The fair value hierarchy provided by GAAP in FASB # 157 is comprised of three (3) levels. Which of these levels is/are based, either directly or indirectly, on observable data? 
2. Giaconda, Inc. acquires an asset for which it will measure the fair value by discounting future cash flows of the asset. Which of the following terms best describes this fair value measurement approach?
3. On July 1, 2003, Roxy Co. obtained fire insurance for a three-year period at an annual premium of $72,000 payable on July 1 of each year. 
4. The effect of a transaction that is infrequent in occurrence but not unusual in nature should be presented separately as a component of income from continuing operations when the transaction results in a
5. Which of the following is a generally accepted accounting principle that illustrates the practice of conservatism during a particular reporting period?
6. According to the FASB conceptual framework, which of the following statements conforms to the realization concept?
7. In a statement of cash flows, which of the following would increase reported cash flows from operating activities using the direct method?
   (Ignore income tax considerations.)
8. White Co. wants to convert its 2001 financial statements from the accrual basis of accounting to the cash basis. Both supplies inventory and office salaries payable increased between January 1, 2001, and December 31, 2001. 
9. A company is an accelerated filer that is required to file Form 10-K with the United States Securities and Exchange Commission (SEC). What is the maximum number of days after the company's fiscal year end that the company has to file Form 10-K with the SEC?
10. During the current year, Ace Co. amortized a bond discount. Ace prepares its statement of cash flows using the indirect method. In which section of the statement should Ace report the amortization of the bond discount?
11. Which of the following statements is correct regarding reporting comprehensive income?
12. Which of the following is correct concerning financial statement disclosure of accounting policies?