According to FASB Concepts Statement No. 6, which of the following is excluded from the definition of a financial instrument? O A. Certificates of interest or participation in an entity O B. Deferred compensation and pension plan agreements is o C. Short-term investments that have maturities of three months or less D. Currency on hand Submit Answers In which of the following scenarios are the financial statements considered available to be issued? o A. The Allman Foundation's financial statements are publicly distributed to shareholders for general use and in a format according to GAAP. B. The Phillip Group's financial statements are compliant to GAAP standards and management and/or significant shareholders approve the issuance. C. The Horner Company's financial statements have been audited. D. The Thomas Group's financial statements have been compiled. Submit Answers Which of the following is not considered key to the proper treatment of subsequent events? o A. Identifying the event B. Identifying the condition o C. Effects of the event D. When the event arose Submit Answers What type of estimate is more likely to meet the disclosure criteria for a significant estimate? o A. New estimate B. Situational estimate C. Policy-term estimate O D. Remote possibility the estimate will change Submit Answers The Garden Foundation includes the following disclosure in its financial statements: Management used assumptions and estimates to prepare the financial statements. These assumptions and estimates affect the amounts of assets and liabilities that were reported, the contingent assets and liabilities that were disclosed, and the revenues and expenses that were reported. Actual results could differ from the estimates. What type of disclosure is this? A. Current vulnerability as the result of certain concentrations B. Certain significant estimates C. Use of estimates when preparing the financial statements O D Nature of operations including any activities that have not commenced in which the entity is currently engaged All of the following are typical related party disclosures for nonpublic companies except: O A. An owner's salary O B. Sales between affiliated entities