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 .
The royalty prepayment should be reported in Sip ' s December 31 , 2001 , financial statements as :
15 . Choose the correct statement about GAAP