1. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with the

going concern assumption.

periodicity assumption.

economic entity assumption.

full disclosure principle.

2. Which of the following is not a component of a conceptual framework for financial reporting?

Foundational principles.

All of these are components of a conceptual framework.

Accountings goals and purposes.

Qualitative characteristics of accounting information.

3. The following items were among those reported on Harrys Ltd.'s income statement for the year ended December 31, 2020:

Legal and audit fees		$200,000
Rent for office space		470,000
Interest on inventory loan		496,000
Loss on abandoned equipment used in operations		82,000

The office space is used equally by Harrys sales and accounting departments. What amount should be classified as general and administrative expenses in Harrys multiple-step income statement for 2020?

$435,000

$931,000

$235,000

$670,000