Author Question: If the cash short and over account has a debit balance at the end of the fiscal year, the balance ... (Read 117 times)

tingc95 · **on:** Jul 5, 2018

If the cash short and over account has a debit balance at the end of the fiscal year, the balance represents a revenue.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Busy Beaver, Inc. purchased land ten years ago for 30,000. At December 31, 2012, similar land has been appraised at 50,000. Answer the following questions:

1. At what amount should land be reported on the balance sheet under U.S. GAAP?
2. Which basis is more reliable, historical cost, 30,000, or fair market value, 50,000?
3. Which basis is more relevant, historical cost, 30,000, or fair market value, 50,000?
4. How might the land be reported using IFRS?

juliaf · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

False

Answer to Question 2

1. 30,000; 2. historical cost; 3. fair market value; 4. IFRS allows (but does not require) the land to be reported at its fair value, 50,000.