CHAPTER 1

THE NEED FOR FINANCIAL REPORTING

1-1.

1. e 6. f
2. a 7. i
3. g 8. a
4. b, d 9. b, c
5. f 10. h

Multiple Choice
MC1 C MC11 C
MC2 D MC12 B
MC3 A MC13 C
MC4 C MC14 C
MC5 D MC15 B
MC6 D MC16 C
MC7 B MC17 C
MC8 D MC18 C
MC9 C MC19 D
MC10 D MC20 A

CHAPTER 2
THE CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING

Discussion Question number 16.

1. Fair value
2. Amortized cost or fair value
3. Lower of cost and net realizable value (historical cost and current value)
4. Historical cost and current value (adjusted for depreciation)
5. Historical cost and current value (adjusted for amortization)
6. Current value (fair value)
7. Current value (fair value)
8. Historical cost, adjusted for interest and payment (amortized cost)
9. Cost or current value (cost adjusted for depreciation or fair value)
10. Cost, adjusted for depreciation or amortization or current value
11. Amortized cost or fair value
12. Amortized cost or fair value
13. mixture of values, as a result of different measurement bases for Assets and liabilities
14. Historical cost
15. Amortized cost or current value
 Multiple Choice

MC1 B MC16 A MC31 C MC46 A

MC2 C MC17 D MC32 A MC47 C
MC3 C MC18 C MC33 D MC48 C
MC4 B MC19 A MC34 D MC49 A
MC5 D MC20 D MC35 B MC50 D
MC6 C MC21 B MC36 B MC51 C
MC7 A MC22 A MC37 A MC52 I, II, IV
MC8 B MC23 C MC38 B
MC9 C MC24 C MC39 C
MC10 C MC25 B MC40 D
MC11 B MC26 A MC41 C
MC12 C MC27 A MC42 D
MC13 A MC28 B MC43 C
MC14 C MC29 C MC44 D
MC15 C MC30 A MC45 B