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1 3 points Generally accepted accounting principles are fundamental truths or adoms that can be derived from laws of nature have been specified in detail in the FASB conceptual framework derive their credibility and authority from general recognition and acceptance by the accounting profession derive their authority from legal court proceedings 3 point According to the FASB's conceptual framework, which of the following is an essential characteristic of an asset? An asset is obtained at a cost. An asset is tangible An asset provides future benefits. The claims to an asset's benefits are legally enforceable. 3 points Accrual accounting is used because O it recognizes revenues when Cash is received and expenses when cash is paid. o it provides a better indication of a company's ability to generate cash flows than the cash basis. O it provides past ability to generate negative cash flows. O cath flows are considered less important. 3 points Which of the following is true of accounting for changes in estimates? Changes in estimates are not carried back to adjust prior years. Changes in estimates are considered as errors. A company recognizes a change in estimate by making a retrospective adjustment to the financial statements. A company accounts for changes in estimates only in the period of change, even though it affects the future periods. 3 points Presented below are data for Bandkok Corp. on December 31st 2017 2018 Contributed Capital 1.458 1,296 Retained Emines. 2 2 Assets 58,850 $9,720 Liabilities 4.860 ? Dividends for the year 1,620 1,215 Net Income for the year 1,920 1,296 Liabilities at December 31, 2018 is O $2,532 O $2,613 $5,840 $5,811

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