Fill in the Blanks: Chapter Fifteen
2. A ____________business component has operations that are clearly distinguishable operationally and for reporting purposes.
3. The accounting profession has stipulated that extraordinary items must be ____________unusual in nature and occur infrequently.
4. In calculating earnings per share, the numerator should consist of ____________earnings available to common stockholders and the denominator should consist of ____________weighted-average common shares outstanding.
5. ____________Basic earnings per share is calculated by ignoring the dilutive effect of convertible securities.
6. In calculating book value per share for a company with more than one class of stock, the amount allocated to preferred stock should be based on the preferred stock's call value, sometimes referred to as the ____________ redemptionor ____________liquidationvalue.
7. An objective of financial accounting is to provide information useful in assessing the ____________amounts, ____________timing, and ____________uncertaintyof an organization's cash inflows and outflows.
8. Information is deemed to be ____________relevant if it influences the actions of a decision maker.
9. Usefulness of accounting information is enhanced if a company's financial statements are ____________ comparablewith the statements of other enterprises.
10. Accounting information should be comprehensible to those who have a ____________reasonable understanding of business and economic activities.
11. ____________Generally Accepted Accounting Principles are the assumptions, concepts, and procedures that collectively serve as the underlying foundation of accounting.
12. Congress established the ____________ Securities and Exchange Commissionto regulate business reporting practices for companies that issue publicly traded securities.
13. The ____________American Institute of Certified Public Accountants is a national association of licensed CPAs, and, at one time, was the parent of the standard-setting ____________Accounting Principles Board.
14. The private sector organization currently in charge of formulating standards for financial reporting is the ____________Financial Accounting Standards Board.
15. The ____________periodicity assumption holds that an entity's life can be divided into discrete time periods.
16. The exchange rate in effect at a particular point in time is known as the ____________spot rate.
17. Foreign currency payables and receivables will result in exchange gains and losses if exchange rates ____________changes (fluctuates).