Which of the following is not required to be disclosed in an entity\'s financial

Question

Which of the following is not required to be disclosed in an entity's financial statements or footnotes?

A)The total amount of research and development costs charged to expense during the year

B)The method used to amortize intangible assets

C)A material amount of purchased goodwill

D)Accumulated amortization of the company's intangibles as of its year end

E)All of the above should be disclosed

If a company incurs disposition obligations as a result of acquiring an asset,

A)the company recognizes the obligation at fair value when the asset is disposed

B)the company recognizes the obligation at fair value when the asset is acquired

C)the company records the difference between the fair value of the asset and the obligation when the asset is acquired

D)None of the above

In an exchange of non commercial substance equipment, a gain cannot be recognized unless:

A)The fair value of the equipment received exceeds the fair value of the equipment surrendered

B)The fair value of the equipment received exceeds the book value of the equipment surrendered

C)Boot is received

D)Boot is paid

The James Company discovers that depreciation expense was overstated on last year's financial statements. How should this discovery be reported in the current year assuming last year's financial statements have been made public?

A)As an increase to retained earnings beginning balance

B)As a reduction in the current year's depreciation expense

C)As a decrease in the current year's income tax payable

D)As a miscellaneous item in the other revenue/expense section of the current year's income statement

E)As a change in the financial statements of the year the error was made

Explanation / Answer

1. E)All of the above should be disclosed

2. B) the company recognizes the obligation at fair value when the asset is acquired.

3.B)The fair value of the equipment received exceeds the book value of the equipment surrendered.

4.A)As an increase to retained earnings beginning balance

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