You Are Driving a Van Packed with Camping Gear (Total

question 25

Multiple Choice

You are driving a van packed with camping gear (total weight 3,500 pounds including yourself and family) into a northern wilderness area. You take a "short cut" that turns into a one-lane road, with no room to turn around. After 11 miles you come to a narrow bridge with a faded sign saying, "Safe Up to 2 Tons." About a half-mile ahead, you can see that your road rejoins the main highway. You consider the sign's hypothesis carefully before making a decision. The cost of Type I error is:

• A)you pass safely over the bridge and everyone's happy.
• B)about $23,900, not including medical bills.
• C)you will find out just how cold that river actually is.
• D)your kids will think you're a chicken.

Recognize and categorize extraordinary and infrequent items in financial statements according to GAAP.

Understand the principles and implications of changes in accounting principles and estimates.

Identify and explain the components and importance of comprehensive income.

Recognize prior period adjustments and their impact on financial statements.

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Definitions:

Ventrally

Pertaining to the belly or underside of an animal or organism; the opposite of dorsally, which refers to the back or upper side.

Chordate Notochord

A flexible rod made out of a material similar to cartilage that provides support in all chordates at some stage of their development.

Eutherian Mammal

Mammals that are characterized by a complex placenta that allows a long gestation period within the uterus, leading to the birth of relatively well-developed offspring.

Insectivora

An obsolete term for an order of mammals, now split into various orders, that are characterized by feeding on insects and other small invertebrates.