Brief exercise 1.5 fasb conceptual framework (lo1-5)
choose the topics addressed in the fasb's conceptual framework. (you may select more than one answer. single click the box with
the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box
for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.)
175
points
2 elements of financial statements.
2 desired characteristics of accounting information
ebook
2 objectives of financial reporting
references
2 valuation concepts relating to financial statement amounts.
? judgment about future events.
? assessment of management intent.
? criteria for deciding what information to include in financial statements.
what are the topics addressed in the fasb conceptual framework

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

Given the following information, calculate the savings ratio: liabilities = $25,000 liquid assets = $5,000 monthly credit payments = $800 monthly savings = $760 net worth = $75,000 current liabilities = $2,000 take-home pay = $2,300 gross income = $3,500 monthly expenses = $2,050 multiple choice 2.40% 3.06% 34.78% 33.79% 21.71%

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?