31. A balance sheet prepared according to U.S. GAAP lists assets from most liquid to least liquid, where liquid refers to the ease of converting the asset into cash.
32. What is a probable future economic benefit that a firm controls because of a past event or transaction?
A. asset
B. liability
C. shareholders’ equity
D. revenue
E. expense
33. The criteria for asset recognition include(s):
A. the firm owns or controls the right to use the item.
B. the right to use the item arises as a result of a past transaction or exchange.
C. the future benefit has a relevant measurement attribute that can be quantified with sufficient reliability.
D. Answers a, b and c are correct.
E. None of these answer choices is correct.
34. Which of the following is/are true?
A. Not all future benefits qualify as assets.
B. All assets provide future benefits.
C. Not all future benefits are assets.
D. Answers a, b, and c are correct.
E. None of these answer choices is correct.
35. The _____ of an asset is the amount a firm would have to pay to obtain another asset with identical service potential; it is an entry value that reflects economic conditions at the measurement date.
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows.
E. Acquisition cost
36. Which of the following is a measurement attribute used in U.S. GAAP to measure inventories whose usefulness (typically, in terms of salability) to the firm has declined below the cost of the inventories?
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost
37. _____ is the net cash (selling price less selling costs) that the firm would receive if it sold the asset today, in orderly fashion in an arm’s-length transaction. It is an example of an exit value, because it reflects a price that the firm would receive in a transaction in which an asset leaves the firm.
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost
38. IFRS defines _____ as a current exchange value, which can mean either a current entry price or a current exit price.
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost
39. _____ is the amount that results from using an appropriate interest rate to discount one or more future cash flows to the present. It is the sum of the present values of the individual future cash inflows and outflows associated with an asset. It is not, in and of itself, a measurement attribute. Rather, it is a means of arriving at a measurement attribute.
A. Current Replacement Cost
B. Net Realizable Value
C. Fair Value
D. Present Value of Future Net Cash Flows
E. Acquisition cost
40. Which of the following terms describes the presumption that a firm will remain in operation long enough to carry out its current plans, and will, in the normal course of its operations, realize changes in the fair values of its assets either by using those assets or selling them?
A. going concern
B. relevance
C. reliability
D. recognition
E. realization