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Week 1 Quiz
All Questions Details given below (Please Check)
Question 1
The fair value hierarchy provided by GAAP in FASB 157 is
comprised of three (3) levels. Which of these levels is/are based,
either directly or indirectly, on observable data?
Question 2
Giaconda, Inc. acquires an asset for which it will measure the fair
value by discounting future cash flows of the asset. Which of the
following terms best describes this fair value measurement
approach?
Question 3
On July 1, 2003, Roxy Co. obtained fire insurance for a three-
year 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. In its December 31, 2003, Balance
Sheet, Roxy should report prepaid expenses of:
Question 4
The effect of a transaction that is infrequent in occurrence but not
unusual in nature should be presented separately as a component
of income from continuing operations when the transaction
results in a