QUESTION: 85 Exam Topic: 1, Volume A

If the Ascot health plan's accountants follow the going-concern concept under GAAP, then these accountants most likely

Assume that Ascot will pay its liabilities immediately or in full during the current accounting period
Defer certain costs that Ascot has incurred, unless these costs contribute to the health plan's future earnings
Assume that Ascot is not about to be liquidated, unless there is evidence to the contrary
Value Ascot's assets more conservatively than they would under SAP

Answer(s): C

QUESTION: 86 Exam Topic: 1, Volume A

For this question, select the answer choice containing the terms that correctly complete blanks A and B in the paragraph below. The FASB mandates that accounting information must exhibit certain qualitative characteristics. One of these characteristics is ________A________, which means that a company's financial statements use the same accounting policies and procedures from one accounting period to the next, unless there is a sound reason for changing a policy or procedure. Another characteristic is _________B________, which requires a company to disclose in its financial statements all significant financial information about the company.

A = reliability
B = comparability
A = reliability
B = materiality
A = consistency
B = comparability
A = consistency
B = materiality

Answer(s): D

Reveal Solution Next Question

QUESTION: 87 Exam Topic: 1, Volume A

The accounting department of the Enterprise health plan adheres to the following policies:
Policy A--Report gains only after they actually occur
Policy B--Report losses immediately
Policy C--Record expenses only when they are certain
Policy D--Record revenues only when they are certain

Of these Enterprise policies, the ones that are consistent with the accounting principle of conservatism are Policies

A, B, C, and D
A, B, and D only
A and B only
C and D only

Answer(s): B

Reveal Solution Next Question

QUESTION: 88 Exam Topic: 1, Volume A

This concept, which holds that a company should record the amounts associated with its business transactions in monetary terms, assumes that the value of money is stable over time. This concept provides objectivity and reliability, although its relevance may fluctuate.

From the following answer choices, choose the name of the accounting concept that matches the description.

Measuring-unit concept
Full-disclosure concept
Cost concept
Time-period concept

Answer(s): A

Reveal Solution Next Question

Free AHM-520 Exam Braindumps (page: 22)

QUESTION: 85 Exam Topic: 1, Volume A

QUESTION: 86 Exam Topic: 1, Volume A

QUESTION: 87 Exam Topic: 1, Volume A

QUESTION: 88 Exam Topic: 1, Volume A