Case 2-3 SAFC No. 8

a. Explain why Sprouse and Moonitz say that quantification is relevant

b. Discuss how the Sprouse and Moonitz discussion of quantification is similar to

i. The definition of accounting found in ASOBAT

ii. The decision-usefulness approach used by the FASB SFAC No. 8

Case 2-5 Definition of Assets

Your company owns a building this is fully paid for. Explain how the building meets the definition of an asset under each of the following scenarios.

a. Your company is using the building as a plant that is producing automobiles.

b. Your company is not using the building but plans to sell it. Explain how the building meets the definition of an asset.

c. Your company is not using the building but plans to remodel it so that it can be used as a plant to produce automobiles.