Which of the following companies has correctly dealt with a concentration disclosure in its financial statements? Due to a concentration, E-software anticipates there will be a material effect that may A. Influence a user's decisions. E-Software expects to lose the business relationship, but decides not to disclose it at this time because they have not lost it yet. B-Bay has a concentration in the volume of business it transacts with The Spring Foundation, B. its biggest customer. It discloses this concentration in the financial statements along with a Statement that it does not expect revenue from this customer will be lost. Futuristic has a group of contributors with similar economic characteristics. Because its C. concentration is not with a single entity, it does not disclose the concentration in its financial statements Crows World has a significant concentration of foreign operations. However, because it does D. not believe it is reasonably possible for anything to occur that would cause a severe impact and disrupt toreign Operations, it does not disclose this concentration In which of the following scenarios are the financial statements considered available to be issued? A. The Allman Foundation's financial statements are publicly distributed to shareholders for general use and in a format according to GAAP. The Phillip Group's financial statements are compliant to GAAP standards and management and/or significant shareholders approve the issuance. B. 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 an example of a type I subsequent event? A. Product warranty reserve B. Business purchase C. Loss of equipment caused by flood D. Sale of capital stock issue Submit Answers Bettye's Organization is the debtor in a loan agreement that includes restrictive debt covenants. During the period covered by the financial statements, Bettye's did not violate any of the covenants. How should the organization address this contingency in its financial statements? A. Bettye must obtain a waiver against the possibility of a violation of covenant B. Bettye should disclose the contingency and include positive assurance of compliance. C. Bettye should disclose the contingency, but compliance does not have to be addressed D. The organization should address compliance in the note disclosure and assure the reader Suomi Amets The Children's Foundation enters into a contract with The Lively Group. The contract obligates The Children's Foundation to deliver a specified amount of cash to The Lively Group if a specified event that is beyond the control of either entity occurs. The contract gives The Lively Group the right to receive the cash from The Children's Foundation if said event occurs. What type of contract is this? A. Financial guarantee or other conditional exchange B. Financial option contract C. Conditional receivable payable contract D. Unconditional receivable payable contract Submit Answer In which of the following scenarios has the proper amount of detail been provided in the disclosures regarding collateral arrangements? A. Winter Wool Supplies discloses an evaluation stating that its lender's investment is protected. B. CHP Industries substitutes disclosures for its legal agreements concerning collaterals. Debbie's Dinners includes all assets obtainable for pledging in regards to its collateral arrangements High Snow Supplies includes a list of assets that are pledged as collaterat for loans in its note disclosures C. D. Submit Answer The Garden Foundation sells a significant portion of its inventory to three key companies and records trade accounts receivable. Disclosures about this situation would involve a concentration of what type of risk? A. Market risk B. Credits C. Risk of theft D. Rnk of physical loss An Jeene west answer. Which of the following companies has a disclosure for which FASB ASC 450 applies, but FASB ASC 275 does not? O Comfort House has a loss contingency at the financial statement date, and it is remotely A. possible that the estimate for this contingency will change by a material amount within the next year The Garden Foundation has an asset on which the depreciation will be recalculated due to the We of the assets being extended The Summer Group has an asset that will be written down due to damage occurring to the wt that could not be repaired. The Winter Group has an estimate that affects the financial statements without involving a contingency B C. D. Submit Answers Brown Radiology is named in a malpractice suit brought by a patient against Hope Hospital. The radiology clinic's attomeys say this is a nuisance suit and that the damages claimed are out of proportion with damages suffered. The lawyers are willing to state on the record that the chances of an adverse outcome for the clinic are remote. How will this lawsuit affect the clinic's financial statements? The radiology Clinic is not required to make any disclosures about the nuisance suit under A. GAAP The radiology clinic must include a statement that asserts that the contingency related to the B lawsuit is not expected to be material The radiology clinic must disclose the nature of the contingency related to the lawsuit and C. provide an estimate of the possible loss or range of loss for include a statement that such an estimate cannot be made). The radiology clinic must include whatever disclosures that hospital decides to include in their financial statements since they are both named in the lawsuit. D. Submit Answers J. According to FASB Concepts Statement No. 6, which of the following is excluded from the definition of a financial Instrument? A. Certificates of interest or participation in an entity B. Deferred compensation and pension plan agreements C. Short-term investments that have maturities of three months or less D. Currency on hand Submit Answers All of the following are typical related party disclosures for nonpublic companies except: A. An owner's salary B. Sales between affiliated entities C. A stockholder's pledged personal assets D. A company loan to a stockholder Submit Answers Which of the following is not considered key to the proper treatment of subsequent events? A. Identifying the event B. Identifying the condition C. Effects of the event O D. When the event arose