Question 43 (2 points) According to the FASB Conceptual Framework, how many of the following qualities or characteristics would be needed for something to be listed as an ASSET on the balance sheet? 1) The company has to have legal title to the item. 2) The item provides probable future benefits. 3) The probable future benefits arose from past transactions. 4) The item must be tangible, for example like a building. All four items 01. 2.3 2 and 3 2 and 4 Question 44 (2 points) According to the FASB Conceptual Framework, the primary purpose of general purpose financial reports is to Assure that corporations provide a good return on investments made by stockholders Assure that corporations pay their fair share of taxes Assure that investors and creditors have information that will be useful in making decisions about doing business with the company Provide information that will be useful for decision making by employees and tax authorities Question 45 (2 points) Which of the following would NOT appear on the Retained Earnings Statement The cumulative effect of the change in depreciation when changing from an estimated 10 year to an estimated 15 year life after 5 years have gone by The cumulative effect of changing from Weighted Average to FIFO inventory method after five years net of tax Dividends declared during the year A net of tax adjustment to the beginning balance after discovering that a large piece of equipment had accidentally been treated as an expense last year