1. Correction of an error that occurred in the computation of the net income of a previous period is accomplished by the use of a ____________  prior period adjustment.Correct

 

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).