Accounting Theory and Analysis Case Studies  Case 7-4:  Measurement Techniques The measurement of assets and liabilities on the balance sheet was previously a secondary goal to income...

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Accounting Theory and Analysis




Case Studies






Case 7-4: 
Measurement Techniques



The measurement of assets and liabilities on the balance sheet was previously a secondary goal to income determination. As a result, various measurement techniques arose to disclose assets and liabilities.



Required:


Discuss the various measurement techniques used on the balance sheet to disclose assets and liabilities.






Case 7-5: 
The Statement of Cash Flows



Presenting information on cash flows has become an important part of financial reporting.



Required:


a. What goals are attempted to be accomplished by the presentation of cash‐flow information to investors?


b. Discuss the following terms as they relate to the presentation of cash‐flow information:


i. Liquidity


ii. Solvency


iii. Financial flexibility




Respond to the required questions (about 200 words per case = 400 Total), double-spaced, APA format (source citations and reference insertions) essay.In each Case Study, you must use at least three (3) references, including the textbook (included below).




Text book reference:


Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2017). Financial accounting theory and analysis: Text and cases (12th ed.). Hoboken, NJ: Wiley




(This Assignment Box maybe linked to Turnitin.)





Please use attached template(See cover letter attachment, and use as template)

case-study-7-f0wskuvo.docx gsb-requred-cover-page-and-template-1-d55caejz.docx
Answered Same DayJun 02, 2021

Answer To: Accounting Theory and Analysis Case Studies  Case 7-4:  Measurement Techniques The...

Khushboo answered on Jun 09 2021
145 Votes
Running head: SHORT TITLE OF PAPER (<= 50 CHARACTERS)
[Title of Paper]
[Student Name]
Saint Leo University
[Course/Number]
[Instructor Name]
June 8, 2019
FINANCIAL ACCOUNTING     2
FINANCIAL ACCOUNTING    3
Student Signature: [Type Full Name Here
CASE 7-4
Measurement Techniques for Assets and Liabilities
Assets are classified as the current assets and non-current assets whereas current assets include cash and cash equivalents, trade receivables, etc and non-current assets include property plant and equipment, intangible assets, etc. (Bragg S.). The measurement techniques used for the assets are as follows:
1) Cash and cash equivalents – It is measured at current value and it is irrelevant whether it is measured at amortized cost or fair value as it gives same value.
2) Marketable Securities- It is measured at fair value or amortized costs.
3) Trade receivables/ Accounts receivable- It is the amount that are owed by the customers of the business. It is valued at estimated future value i.e. it is generally recorded at net realizable value that is the approximate fair value based on the estimate of collection.
4) Inventories: Under IFRS it is measured at lower of cost or net realizable value and as per US GAAP it is measured at lower of cost or market value.
5) Property plant and equipment: While measuring it...
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