8) under the equity miethed, unrealierd belding gains (lesses) are A. Reported as a separate component of theckithellen' equity. 13. 3hant of Bet inconse. C. Not recognized. D. Reported as other compnchenuive income. E. None of the above. 7) To he a fithful mepecnereutige as descrihed by be latermabinal Aecounting Standordi Bourd's a. Coenplete, b. Free fioen erree, c, Ceafimmatoey. d. Neutral. 103 Which of the following is an implacatice of the goitz erncerm assumpticn on financtal reporting? a. The historical cost principle as aredible. b. Depreciation and amertiration policies are jatifiable and appropriate c. The curent-acocurtcot classificative of assets and liabalities is justifable 1. All of these. 11) Decrease in cyaity (inct assets) frum mcidental trmesctions (non-rcvenuc gencrating activities) of an entity are A. Expenses. B. Gains C. Investnents by wwacrs D. LOS5 12) Depecciation and amestizatioe policics ane joblifidie and aperopruite because of the A. Echoomic statify assumption. B. Coing soncera assermption. C. Monctary unil assumption D. Rerioficiby assounpeive. 2 13) Which of the fodlowisg statemict is the mest trae A) According lo acoosmiting theory all foture cash flow cuntracts ieg, AR, NR,..NP or bond payable ) should be roceghirod an transitive datc at fair value / present value of future cash flows. B) The current prastace of repocting shert term recetvable or puyables at gross value or sentenent value is violate the theory but junifical en the basis of Materially Cancept. C) The cument practice of ropocting shoen term rectiblle or payables at gross value or settlement value is violating thoury bu jostified in the busis of Censervatism. D) A \& B, El A &C. 14) Which of the follewing stafement lo the mest true: A) Accounting for change in accounting method applied recro-actively. And reyuire the restatemetil of prist year firancial stutement. B) a change in acecunting estimale arolied frenpectively and dal not repuire restaiement of peiver year financiul statements. C) Aecounting for prior year accounting emons requirol restitcment of prior year financial statemerts. D) All of the above statement are true 15) The advantage of relating a company's bad debt expense te its sutsanding accounts receivable is that this appreach A) . gives a reasoeably cortect statement of rocenvables in the balance sheet. B) bnd relates bed debss expcrse to the period of ule C) is the only gencrally accepted method for vulhing ackeents reccivable. D) makes estimates of uncolilectible acconets uanecessury