Which of the following regarding the conceptual principles underlying the accounting decisions is NOT CORRECT? Mutiple Choice The estinated loss for "held for sale" discontinued operation is recognized but not for estimated gain, which apples conservatimn Public companies make their quartelly financial statements avalable in add tion to their annuas statements becaise timelaress is important for the decition usefulness of information. The significant accouncng poicies note to financiat statements would hep intormabon vsers to conple frm performance in sane. industry, which is a tefiectoon of compseablity. Mansgement is allowed to freely put tueic spin on fnuncial statements and rebieqed notes, which reflects neutalif Groupon is a global e-commerce company with operations outside of the US. The Chief Financial Officer of Groupon consults wth you about the status of US. GAAP in relation to IFRS, Which of the following is a CORRECT statement you would tell your client? Muttiple Choice Capital markets in all counties operate under a common set of reponing requirements for audited financiai statements The Internationst Accounting Standards Bosed (ASSB) currenty cames the same weight as FASB in terms of setting standerds in the U.S. The international Accounting Standards Board is facing the polticas preswre of all whie Fasa handies a standardis seting process that does not involve poifics. FASB is wokkno wath inse in as recent new prosects to asd raw standerds to US. GMa The sec ras the authonty no iswe ne over fase mo use Which of the following actions would increase the debt-to-equity ratio? Multiple Choice Paying off a long-term note payable Issuing new shares of common stock Purchasing equipment on credit Selling equipment at a gain Selling inventory on credit at a profit In the early 2000 s, the Wall Street Journal had several articies discussing the Revenue Recognition practices of internet companies. These companies often seem to be judged by potential investors on the basis of revenues alone. An officlal of Healtheon/WebMD responded to questions regarding his company's unusual revenue items by saying "- it was a one-time thing plus the recording of revenue was cleared by our auditors: What was the suditors' role? Multipie Choice The auditors cleared out the fevenue accounts in the closing process The auditors rendered a clean opinion as to the fairness of presentation of the operations, financlat position, and cash flows, bared upon conformonce to GAAP The audit partneis were big investors in HealtheonWebMD so they would have decided haw to record the revenue: The managemant of HearteonWobMo paid the asiditors to pre pere We fiancisi itatement The buditor wore primatiy responsibie for HealtheonYhebMDy finaneiai statements
