TRUE/FALSE

1.The current operating approach has led to the concept of comprehensive income.

2.Comprehensive income is the change in equity of an entity during a period of transactions and other events and circumstances, from owner and non-owner sources.

3.The income statement is largely a legacy of fifty years of accounting standards based on the revenue-expense approach.

4.The FASB appears to be continuing to take a revenue-expense approach to financial statements.

5.Although there are exceptions, revenue is generally recognized at the time cash is collected.

6.The majority of exceptions to the general rule regarding revenue recognition have evolved because new transactions have emerged that do not fit the mold of traditional transactions.

7.The major expense-recognition problem concerns those costs that are clearly not expired in the period incurred but are clearly not associated with the revenues of a particular period.

8.The distinction between losses and expenses is important under the all-inclusive income concept.

9.The expense recognition model based on historical cost, as well as the model based on current value, must allocate the costs incurred.

10.Most accountants believe that the method of cost allocation used is nothing more than an arbitrary decision.