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The Codification is the sole source of U.S. GAAP, other than SEC GAAP, for nongovernmental entities. 4. What amount should Pak report for professional fees expense for the year ended December 31, 2001? 5. Historical cost is a measurement base currently used in financial accounting. Which of the following measurement bases is(are) also currently used in financial accounting? 6. A the correct sequence of accounting procedures? 7. In its December 31, 2004, Balance Sheet, what amount should Thrift report as prepaid expenses? 8. U Co. had cash purchases and payments on account during the current year totaling $455,000. U's beginning and ending accounts payable balances for the year were $64,000 and $50,000, respectively. What amount represents U's accrual-basis purchases for the year? 9. What is the primary protection for investors against fraudulent financial reporting by corporations? 10. In analyzing a company's financial statements, which financial statement would a potential investor use primarily to assess the company's liquidity and financial flexibility? 11. Spee uses the direct write-off method for bad debts. No bad debts were recorded in 2004. Under the cash basis of accounting, what amount of revenue should Spee report for 2004? 12. According to the FASB conceptual framework, certain assets are reported in financial statements at the amount of cash or its equivalent that would have to be paid if the same or equivalent assets were acquired currently. What is the name of the reporting concept? 13. The purpose of financial accounting is to provide information primarily for which of the following groups? 14. On January 1, 2001, Sip Co. signed a five-year contract enabling it to use a patented manufacturing process beginning in 2001. A royalty is payable for each product produced, subject to a minimum annual fee. Any royalties in excess of the minimum will be paid annually. On the contract date, Sip prepaid a sum equal to two years' minimum annual fees. In 2001, only the minimum fees were incurred.