The royalty prepayment should be reported in Sip ' s December 31 , 2001 , financial statements as :
15 . Choose the correct statement about GAAP
It is a violation of SEC regulations for publicly traded companies to depart from GAAP .
16 . Under Statements of Financial Accounting Concepts , comprehensive income includes which of the following ?
17 . Which of the following is an application of the principle of systematic and rational allocation ?
18 . What group currently writes the Generally Accepted Accounting Principles ?
19 . The information provided by financial reporting pertains to
Individual business enterprises , rather than to industries or an economy as a whole or to members of society as consumers .
20 . According to the FASB Conceptual Framework , what does the concept of faithful representation in financial reporting include ?
21 . Which of the following accounting pronouncements is the most authoritative ?
22 . According to the FASB Conceptual Framework , which of the following relates to both relevance and faithful representation ?
23 . On July 1 , 2003 , Roxy Co . obtained fire insurance for a threeyear period at an annual premium of $ 72,000 payable on July 1 of each year .
The first premium payment was made July 1 , 2003 . On October 1 , 2003 , Roxy paid $ 24,000 for real estate taxes to cover the period