ACC 577 OUTLET Learn by Doing/acc577outlet.com ACC 577 OUTLET Learn by Doing/acc577outlet.com | Page 28

of the following terms best describes this fair value
measurement approach?
Question 3
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. 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
Question 5
Which of the following is a generally accepted accounting
principle that illustrates the practice of conservatism during a
particular reporting period?
Question 6
According to the FASB conceptual framework, which of the
following statements conforms to the realization concept?
Question 7