3 . Which of the following statements includes the most useful guidance for practicing accountants concerning the FASB Accounting Standards Codification .
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