Exercise 2-01 indicate whether the following statements about the conceptual framework are true or false.
(a) accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. select an option
(b) general-purpose financial reports are most useful to company insiders in making strategic business decisions. select an option
(c) accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. select an option
(d) capital providers are the only users who benefit from general-purpose financial reporting. select an option (
e) accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. select an option
(f) the objective of financial reporting is the foundation from which the other aspects of the framework logically result.

The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. the ceo generally works under the board and its chairman, and the board generally has the authority to remove the ceo under certain conditions. the ceo, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. it is possible for a person to simultaneously serve as ceo and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. true false

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.