57. An example of an inventory accounting policy that should be disclosed in Summary of Significant...

 

Transcribed Image Text:

57. An example of an inventory accounting policy that should be disclosed in Summary of Significant Accounting Policies is the a. amount of income resulting from the involuntary liquidation of LIFO. b. major backlogs of inventory orders. c. method used for pricing inventory. d. division of inventory by raw materials, work-in-process, finished goods. 58. According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to financial statement readers in determining a. net income for the year. b. whether accounting policies are consistently applied from year to year. c. the value of obsolete items included in ending inventory. d. whether the working capital position is adequate for future operations. 59. Events occurring after the end-of-year balance sheet date (but before the statement is issued) that provide additional evidence about conditions that existed at that date affecting the realizability of accounts receivable should be a. discussed only in the Management's Discussion and Analysis section of the annual report. b. disclosed only in the Notes to the Financial Statements. c. used to record an adjustment to Bad Debt Expense for the year ending December 31, 2018 d. used to record an adjustment directly to the Retained Earnings account 60. Companies should disclose all of the following in interim reports EXCEPT a. basic and diluted earnings per share. b. changes in accounting principles. c. post-balance-sheet events. d. seasonal revenue, cost, or expenses. 57. An example of an inventory accounting policy that should be disclosed in Summary of Significant Accounting Policies is the a. amount of income resulting from the involuntary liquidation of LIFO. b. major backlogs of inventory orders. c. method used for pricing inventory. d. division of inventory by raw materials, work-in-process, finished goods. 58. According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to financial statement readers in determining a. net income for the year. b. whether accounting policies are consistently applied from year to year. c. the value of obsolete items included in ending inventory. d. whether the working capital position is adequate for future operations. 59. Events occurring after the end-of-year balance sheet date (but before the statement is issued) that provide additional evidence about conditions that existed at that date affecting the realizability of accounts receivable should be a. discussed only in the Management's Discussion and Analysis section of the annual report. b. disclosed only in the Notes to the Financial Statements. c. used to record an adjustment to Bad Debt Expense for the year ending December 31, 2018 d. used to record an adjustment directly to the Retained Earnings account 60. Companies should disclose all of the following in interim reports EXCEPT a. basic and diluted earnings per share. b. changes in accounting principles. c. post-balance-sheet events. d. seasonal revenue, cost, or expenses.