MSN Company owns an old machine that cost $30,000, has annual depreciation expense of $6,000, and has accumulated depreciation of $15,000 on December 31, 2020 On Apnl 30, 2021, when the machine has a fair value of S12.000, it was exchanged for a similar machine that worth $36,000 and the proper amount of cash is paid. The exchange lacks commercial substance Required: Prepare the necessary journal entries on April 30, 2021. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). The main purpose of financial accounting is to provide information for use: O A. Only governmental O B. Only internal O C. All of the choices are correct O D. External 1 points The difference between financial statements and financial reporting: O A Financial statements may include special reports such as environments reports. Whereas financial reporting provides only financial Information OB Financial reporting is an area of accounting that comes under the umbrella of financial statements O C None of the choices is correct OD. Financial statements include the major financial statements like Income statement, etc. Whereas financial reporting involves only the notes to the financial statements Which of the following items doesn't belong to equity? O A. Distribution of dividends O B. Issuance of ordinary shares O C. Retained earnings O D. Gain on sale of investments When preparing financial reports, the main aim for companies is to enhance information............. O A. Comparability O B. Faithful representation O C. Usefulness O D. Understandability 45 points Se Presented below are several qualitative characteristics, accounting principles, assumphons, and constraints. Match the letter of each with the appropriate statement. Don't use a letter more than once. Characteristic that permits users to identity similarities in and differences A Periodicity assumption between two sets of economic phenomena. R Faithful representation Information that is capable of making a difference in the decision of users in their capacity as capital providers. C. Expense recognition principle The basic assumption/principle that makes deprecation and amortization D. Verifiability policies justifiable and appropriate. E. Monetary unit assumption A company provides supplementary information to explain the effects of financing arrangements. F. Relevance The principle/assumption that implies that officers' salaries are most often G. Timeliness charged to the current period and not carried into future periods H. Going concern assumption Characteristic that assures users that information represents the economic phenomena that it intends to represent: 1. Understandability Characteristic that allows users to comprehend the meaning of the 1. Comparability information K Revenue recognition principle The principle/assumption that implies that economic activity can be L. Full disclosure principle Identified with a particular unit of accountabilky The principle/assumption that is applied when a company reports land on its M. Economic entity assumption statement of financial position at the amount paid to acquire it, even though the estimated fait value is greater. N. Cost penciple Non-financial measurements include all of the following except: O A. Reject rates on goods purchased O B. All of the choices are non-financial measurements O C. Customer satisfaction indexes O D. Backlog information Which of the following statements is incorrect about materiality? O A. An item is material if omitting it or misstating it could influence the judgment of an informed user O B. An item must make a difference or a company need not disclose it O C. A rule is adopted that anything under 10 percent of income is immaterial O D. Materiality is a matter of relative size and importance