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
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 ending September 30 , 2004 . This prepayment was made to obtain a discount . 24 . Young & Jamison ' s modified cash-basis financial statements indicate cash paid for operating expenses of $ 150,000 , end-of-year prepaid expenses of $ 15,000 , and accrued liabilities of $ 25,000 . At the beginning of the year , Young & Jamison had prepaid expenses of $ 10,000 , while accrued liabilities were $ 5,000 . If cash paid for