Which is not an underlying assumption of accounting information?

Multiple Choice

• Stable Currency

• Time period

• Cost/Benefit

• Proprietary

A corporation reported 19X1 net income of $156,000. On January 1, 19X1, 60,000 shares of common stock were outstanding. An additional 10,000 shares were sold and issued on April 1 and, 5,000 shares were purchased and retired on October 1. Earnings per share (rounded to the nearest cent) are:

Multiple Choice

• $2.40.

• $2.32.

• $2.36.

• $2.60.

Which of the following does not represent a primary measurement method used under IFRS?

Multiple Choice

• Historical cost

• Present value

• Nominal cost

• Fair value

External decision-makers include all of the following except:

Multiple Choice

• employees.

• creditors.

• managers.

• owners.

A construction company uses the percentage-of-completion method of accounting. In 2007, the company began work on a government contract which had a contract price of $4,000,000 and estimated costs of $3,000,000. Additional data were as follows:

	2007	2008
Costs incurred during the year	$600,000	$2,550,000
Estimated costs to complete, as of 12/31/2007	2,400,000
Billing during the year	720,000	3,080,000
Collections during the year	500,000	3,100,000

The portion of the total contract income to be recognized during 2007 is:

Multiple Choice

• $120,000

• $200,000

• $1,000,000

• $250,000