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
Question 5