10. According to the conceptual framework, verifiability implies: A. Legal evidence. B. A business entity will continue indefinitely. C. Consensus. D. Stringent credit requirements. | 12. Cal Farms reported supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies the Cal Farms purchased during the year? A. $1,600,000. B. $1,800,000. C. $2,200,000. D. $2,400,000. 13. When a company revalued land for and recognizes a $25,000 gain, A. The retained earnings Increase B. The gain in income statement increases C. The gain in OCI increases and no change in Equity D. The gain in OCI increases and Equity increases 14. On September 1, 2023, Fortune Magazine sold 600 one-year subscriptions for $81 each. The total amount received was credited to unearned subscriptions revenue. What would be the required adjusting entry at December 31, 2023? a. 48,600 16,200 32,400 b. 16,200 Unearned subscriptions revenue Subscriptions revenue Prepaid subscriptions Unearned subscriptions revenue Subscriptions revenue Unearned subscriptions revenue Subscriptions revenue Unearned subscriptions revenue Subscriptions revenue 16,200 C. 16,200 16,200 d. 32,400 32,400 15. A subsequent event for an entity with a December 31, 2022 year-end would not include A. an issuance of a significant amount of bonds in January 2023. B. an acquisition of another company in January 2023. C. a regular payment for purchase of supplies in January 2023. D. a major uncertainty on December 31, resolved in January 2023. 16. On June 1, Royal Co. began operating a service company with an initial cash investment by shareholders of $2,000,000. The company provided $6,400,000 of services in June and received full payment in July. Royal also incurred expenses of $3,000,000 in June that were paid in August. During June, Royal paid its shareholders cash dividends of $1,000,000. What was the company's income before income taxes for the two months ended July 31 under the following methods of accounting? a. b. Cash Basis $3,400,000 $5,400,000 $6,400,000 $6,400,000 Accrual Basis $3,400,000 $2,400,000 $3,400,000 $3,400,000 C. d. A. Option A B. Option B C. Option C D. Option D 18. Value in use for assets is one of the three current value measures. Value is use is based on 6 Intermediate Accounting 1 Assignment 1 (Chapters 1 3) 2021- 22 Sem2 A. the present value of outflows of economic resources to maintain the use of the assets B. the present value of future cash flows generated by the assets C. the fair value of the assets D. the cost of replacing the assets of similar quality and conditions