...Question 36 Taxable income of a corporation Correct Answer: differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of income determination. Question 37 Correct Answer: III Question 38 Interperiod income tax allocation causes Correct Answer: tax expense shown on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year. Question 39 The deferred tax expense is the Correct Answer: increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. Question 40 The rationale for interperiod income tax allocation is to Correct Answer: recognize a tax asset or liability for the tax consequences of temporary differences that exist at the balance sheet date. Question 41 Interperiod tax allocation results in a deferred tax liability from Correct Answer: the amount of deferred tax consequences attributed to temporary differences that result in net taxable amounts in future years. Question 42 Which of the following situations would require interperiod income tax allocation procedures? Correct Answer: A temporary difference exists at the balance sheet date because the tax basis of an asset or liability and its reported amount in the financial statements differ Question 43 Interperiod income tax allocation procedures are appropriate...
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...1. Three major organizations in the private and public sector develop U.S. and international GAAP. They include all of the following except the (Points: 4) EU (European Union) SEC (Securities and Exchange Commission) FASB (Financial Accounting Standards Board) IASB (International; Accounting Standards Board) 2. The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except (Points: 4) eliminate inconsistencies in conceptual guidance on revenues replace principle-based accounting with rule-based accounting for revenues establish a single comprehensive standard on revenue recognition fill voids in revenue recognition guidance 3. Certain U.S. accounting standards have been, and will be, amended to aid in the international convergence process. The process of changing these standards usually involves (Points: 4) a short deliberation followed by a vote of the U.S. Congress acceptance of the change by the Internal Revenue Service rejecting all existing standards and developing an entirely new concept selecting the best standard between existing U.S. and international standards 4. Conversion to IFRS reporting by all U.S. companies would be best accomplished with a transition plan for all of the following reasons except (Points: 4) it would have to be a multi-year process it needs to be an orderly process with a minimum of cost and disruption to the participants certain IFRS need further improvement...
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...Name: ________________________ Class: ___________________ Date: __________ ID: A ACCT1B - Managerial Accounting: Sample Exam 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds 2. On the statement of cash flows, the cash flows from operating activities section would include: a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts from sales activities 3. Cash paid to purchase long-term investments would be reported in the statement of cash flows in: a. the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d. a separate schedule 4. A statement of cash flows would not disclose the effects of which of the following transactions? a. stock dividends declared b. bonds payable exchanged for capital stock c. purchase of treasury stock d. capital stock issued to acquire fixed assets 5. Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows? a. appropriation of retained earnings b. acquisition of treasury stock c. declaration of stock dividends d. issuance of long-term debt...
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...Securities and Exchange Commission- protects investors and maintains integrity of the securities market- Oversees FASB and PCAOB FASB- Financial Accounting Standards Board- sets GAAP PCAOB- (public company oversight board) - sets auditing standards for CPA's Management of a company has responsibility for financial statements and related disclosures Board of Directors (audit committee) is responsible for ensuring that processes are in place for maintaining the integrity of the company's accounting, financial statement prep, and financial reporting Independent Auditors (CPA's) present Unqualified (clean) Audits Unqualified/Clean Audit- attests to the fairness of financial statements and related disclosures Institutional Investors- private and public pension funds, mutual funds, endowment and charitable funds, and trust funds Private Investors- individuals who purchase shares in the company Creditors- suppliers and financial institutions that lend money or supplies to the company Other Users of financial info include customers, suppliers, competitors, and employees. Each User evaluates the financial health of companies Guiding Principles for Communicating Useful Information: Information must be- Relevant - Reliable Consistent - Comparable All material amounts must be disclosed Conservatism Accounting Method is least likely to overstate Assets and Net Income Form 10-K Annual Report- includes detailed descriptions of products, development, sales...
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...CHAPTER 4 CONSOLIDATION OF WHOLLY OWNED SUBSIDIARIES ACQUIRED AT MORE THAN BOOK VALUE ANSWERS TO QUESTIONS Q4-1 The carrying value of the investment is reduced under equity method reporting when (a) a dividend is received from the investee, (b) a differential is amortized, (c) an impairment of goodwill occurs, and (d) the market value of the investment declines and is less than the carrying value and it is concluded the decline is other than temporary. Q4-2 A differential occurs when an investor pays more than or less than underlying book value in acquiring ownership of an investee. (a) In the case of the cost method, no adjustments are made for amortization of the differential on the investor's books. (b) Under equity-method reporting the difference between the amount paid and book value must be assigned to appropriate asset and liability accounts of the acquired company. If any portion of the differential is assigned to an amortizable or depreciable asset, that amount must be charged against income from the investee over the remaining economic life of the asset. Q4-3 Amortization of a differential is the most common reason for investment income to be lower than a proportionate share of reported income of the investee. If Turner Company has paid more than book value for the shares of Straight Lace Company, the differential must be assigned to identifiable assets and liabilities of the investee, or to goodwill. Those amounts assigned to depreciable and...
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...| |UNIVERSIDAD | | |TORCUATO DI TELLA | UNIVERSIDAD TORCUATO DI TELLA Contabilidad Financiera Profesor: Julio César Fermo Comisión I y II – Segundo Examen Recuperatorio - Año 2011 • Para aprobar el examen los alumnos deberán obtener una calificación de al menos “C”, tanto en la práctica como en la teoría. La nota promedio ponderará un 60% la práctica, y un 40% la teoría. La nota máxima será “B”. • La duración máxima del examen es de 3 horas. • Por favor responda en hoja aparte o al dorso del examen (excepto multiple choice). No lo haga entre preguntas, dado que no hay espacio suficiente. • Por favor escriba las respuestas en hoja aparte, la parte práctica por un lado, y la teórica por el otro. Por favor escribir en birome o lapicera, en letra imprenta mayúscula, de manera clara y legible, acompañando los papeles de trabajo. • En los ejercicios del tipo “Verdadero / Falso”, justifique su respuesta. No lo haga a través de ejemplos; los ejemplos complementan un concepto, no lo definen. • No omita indicar su nombre completo en cada hoja. • Suerte¡¡ Parte A – Práctica Ejercicio Nro. 1 (30 puntos): ABC S.A. es una compañía que tiene como objeto social la comercialización de artículos de librería y muebles para oficinas a empresas. Usted es Responsable del área de Finanzas de la empresa, y se encuentra reunido con su equipo de trabajo para terminar de confeccionar el Estado...
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...Selected T-accounts for Rolm Company are given below for the just completed year: [pic] .:. Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)? 6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,000 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost? SOLUTION: 1. The cost of raw materials put into production was: |Raw materials inventory, 1/1 |$ 30,000 | |Debits (purchases of materials) | 420,000 | |Materials available for use |450,000 | |Raw materials inventory, 12/31 | 60,000 | |Materials requisitioned...
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...ch04 Student: ___________________________________________________________________________ On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows: 1. Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25,000. C. $70,000. D. $45,000. Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination? A. $0 B. $25,000 C. $70,000 D. $45,000 2. On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000. Balance sheet information Venus just prior to the acquisition is given here: At the date of the business combination, Venus's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000. 3. Based on the information provided, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition? A. $60,000 B. $75,000 C. $15,000 D. $45,000 4. Based on the information provided, what amount of goodwill will be included in the consolidated balance...
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...Assignment 1—Due Wednesday 28rd September, 2012 Please Note: There are three (3) questions in this assignment. Question 1: Plagiarism and referencing Although this question is not awarded marks, students MUST complete this entire question to get any marks for assignment 1. An understanding of plagiarism and “in text” referencing is essential to success in tertiary studies. Background information for Question 1 In an academic setting it is important to acknowledge the ideas of others that you have used in building your argument or preparing your answers. This not only includes words but anything for which you may be graded, e.g. layout of an answer copied from another person. The Learning Connection website at UniSA provides some very useful information about plagiarism. Particularly useful links include the following: 1. Avoiding plagiarism (Learning Connection) http://www.unisa.edu.au/learningadvice/plagiarism/default.asp 2. Referencing (Learning Connection) http://www.unisa.edu.au/learningadvice/referencing/default.asp Tasks for Question 1 Using the materials on these websites, undertake the following tasks. a. Find a definition of what plagiarism is and write a definition of plagiarism in your own words. In my words plagiarism would be the exact copy of someone else's work for example if I had copied word for word the text book we are currently working through it would be plagiarism. b. In your own words, write not more than half a page (200 words) on...
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...(5): 10 (5): Total (100) _____ Name: INSTRUCTIONS 1. Your test should include 8 pages (cover sheet plus 7 pages of test). All pages should be turned in at the completion of the exam. 2. On the problems, include ALL computations, properly labeled in the space provided. Partial credit may be given at the discretion of the instructor. 3. Calculators may be used. They cannot be shared. You may not use the calculator on a cell phone. 4. If you have a question or problem, ask the instructor. 5. The minimum penalty for academic dishonesty on this exam will be a grade of 0 for this examination. Academic dishonesty includes giving aid to or receiving aid from another student during this exam. 6. No hats. No cell phones I certify by signing below that I have neither given nor received aid in completing this examination. Signature Date I. Accounting Concepts 20 points. A. Accounting Change. ABC Company has been using specific identification inventory method. However, it has grown and has a broader array of products. The company would like to use the greater efficiency of the FIFO method on a periodic basis for financial reporting. (a) Is ABC Company allowed to change its inventory methods? Why or why not? (b) Assuming that the company is allowed to make this accounting change, what financial reporting method will the company use in making this...
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...1 of 6 TEST BANK > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. Add Name Description Instructions Modify Creation Settings Chapter 2--Why People Commit Fraud Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a common rationalization of fraud perpetrators? Answer The organization owes me I'm only borrowing the money No one will get hurt I don’t deserve more. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a primary control procedure to minimize the occurrence of fraud? Answer Dual custody Systems of authorization Internal audit department Documents and records Add Question Here Multiple Choice 0 points Modify Remove Question Each of the following is an example of an inadequate control environment EXCEPT: Answer The HR department failed to check an applicant's background and hired someone who had committed fraud in the past. A manager instructs employees not to share passwords, and then shares her passwords with others. A company does not establish codes of conduct and does not have training meetings to teach employees to distinguish between acceptable and unacceptable behavior. The employees know who has...
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...ACCOUNTING 320B INTERMEDIATE ACCOUNTING II SYLLABUS - Fall 2014 Instructor: Dr. N.J. Kim, CPA Office: ST 612 Office Hours: TR 8:35 – 9:40 am & R 4:00 – 6:00 pm Phone: (323) 343-2840 Email: nkim2@calstatela.edu Instructional Web site: http://instructional1.calstatela.edu/nkim2/ Connect URL: http://connect.mcgraw-hill.com/class/sec-3 Textbook: Intermediate Accounting, 7th Edition, Spiceland, Sepe and Nelson, McGraw-Hill, ISBN-9780078025327 (Hard copy, Volume II, or e-book with CONNECT available) Course Objectives and Description: Intermediate Accounting is designed to acquaint the student with current accounting theories and practices. In this second part of intermediate accounting, we will learn accounting for fixed assets, intangibles, long-term liabilities, investments, and stockholders’ equity. Statement of cash flows and accounting issues related with accounting changes and error correction are also covered in this class. Prerequisite: ACCT 320A or equivalent with a grade C or better Grading: Points are distributed as follows. Accounting majors must earn a grade of “C” or better in each accounting class taken to graduate. Midterms 100 250-300 A Final 130 210-249 B Participation & Attendance 10 180-209 C Comprehensive test 20 150-179 D Homework 40 Below 150 F Total 300 points A modified curve may be applied at the end of the quarter if necessary. Withdrawal...
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...MID-TERM EXAM - 1st Semester, 2012 |Date |Time |Course Title & Code |Room No. | |29 June, 2012 |11.00 am ~ 12.30 pm |501: Accounting System & Auditing |502 | |(Friday) | | | | |30 June, 2012 |7.00 pm ~ 8.30 pm |502: Managerial Economics |402 | |(Saturday) | | | | |06 July, 2012 |3.00 pm ~ 4.30 pm |503: Business Communication |502 | |(Friday) | | | | |07 July, 2012 |7.00 pm ~ 8.30 pm |504: Advanced Management |502 | |(Saturday) | | | | |13 July, 2012 |3.00 pm ~ 4.30 pm |503: Business Communication...
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...current economic situation, knowing that new jobs may not be available by the time I finish with my MBA. An MBA would benefit me greatly in a variety of ways. Pursuing an MBA will aid in the development of the skills I need in the finance and accounting areas. Of course the increase in pay from possessing an MBA does not hurt either. When researching jobs online I am finding that by having a master’s degree, the pay is substantially higher than those with a bachelor’s degree. Other than career and financial reasons, I do have a personal goal to achieve more than my siblings. Out of four sisters only two of us have a bachelor’s degree. I would love nothing more than to become the other sibling to obtain a masters degree. Plain and simple, I want to do better than all of my sisters. In this economy, having a good paying job with security is vital. “In nearly every sector of the globe, the prospect of making more money and living a better economic life draws thousands of students to MBA programs” (Euders.com, 2009). I plan hopefully to open my own business someday in the very near future. With running my own business the part of running a business that I feel I need stronger skills would be in the finance or accounting areas. These areas would be of great value to me while running my own company. If I do have my own company I think that having excellent financial skills would be beneficial. This...
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...| (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for | | | Student Answer: | | taxing authorities. | | | | internal users of accounting information. | | | | external users of accounting information. | | | | the Securities and Exchange Commission (SEC). | | Instructor Explanation: | Chapter 1, Page 7 | | | | Points Received: | 0 of 4 | | Comments: | | | | 2. | Question : | (TCO 1) Which of the following costs does not change when the level of business activity changes? | | | Student Answer: | | total fixed costs | | | | total variable costs | | | | total direct materials costs | | | | fixed costs per unit | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 3. | Question : | (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation? | | | Student Answer: | | the trip to Cancun that you will not be able to take if you buy the car | | | | the cost of the car you are trading in | | | | the cost of your books for this term | | | | the cost of your car insurance last year | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 4. | Question...
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