Question 1

A bond's face value is also called

Accepted Answer

A) the par value or the present value. 
B) the principal amount or the present value. 
C) the future value or the maturity value. 
D) the par value or the maturity value. 
A) the par value or the present value. 
B) the principal amount or the present value. 
C) the future value or the maturity value. 
D) the par value or the maturity value.

Question 2

Zircon Ltd., a GST registrant, buys $4,500 worth of Office Supplies for their own use.The purchase is subject to 8% PST and 5% GST.What amount will be debited to the Office Supplies account as a result of this transaction?

Accepted Answer

A) $4,500 
B) $4,725 
C) $4,860 
D) $5,085 
A) $4,500 
B) $4,725 
C) $4,860 
D) $5,085

Question 3

Accounting for a troubled debt restructuring On December 31, 2014, Riverside Inc.is in financial difficulty and cannot pay a $350,000 note (with $35,000 accrued interest payable)to Stockton Corp.Stockton agrees to forgive the accrued interest, extend the maturity date to December 31, 2016, and reduce the interest rate to 4%.The present value of the restructured cash flows is $299,500. Instructions Prepare entries for the following:
a.the restructure on Riverside's books
b.the payment of interest on December 31, 2015
c.the restructure on Stockton's books.

Accepted Answer

@#IMG-DLM& Long-Term

Question 4

A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following?

Accepted Answer

The answer of A corporation declared a dividend, a portion...

Question 5

How would total shareholders' equity be affected by the declaration of each of the following?

Accepted Answer

The answer of How would total shareholders' equity be affected...

Question 6

Use the following information for questions. Riga Ltd.has outstanding 100,000 no par common shares and 20,000 no par, $0.40, preferred shares issued at $5 each.The preferred shares are cumulative and non-participating.Dividends have been paid every year except the past two years and the current year.
-Assuming that $50,000 will be distributed as a dividend in the current year, how much will the common shareholders receive?

Accepted Answer

A) $24,000 
B) $26,000 
C) $34,000 
D) $42,000 
A) $24,000 
B) $26,000 
C) $34,000 
D) $42,000

Question 7

Use the following information to answer questions Prague Corp.is authorized to issue 400,000 no par value common shares.Subscribers agree to purchase shares at $15 per share with a 30% down payment.
-The journal entry to record the issuance of the shares upon receipt of the final instalment includes a

Accepted Answer

A) debit to Common Shares Subscribed for $750,000. 
B) credit to Common Shares for $525,000. 
C) credit to Common Shares for $225,000. 
D) debit to Subscriptions Receivable for $525,000. 
A) debit to Common Shares Subscribed for $750,000. 
B) credit to Common Shares for $525,000. 
C) credit to Common Shares for $225,000. 
D) debit to Subscriptions Receivable for $525,000.

Question 8

The accounting problem in a lump sum sale of shares is the allocation of the proceeds between the classes of securities.One acceptable method of allocation is the

Accepted Answer

A) pro forma method. 
B) relative fair value method. 
C) direct method. 
D) indirect method. 
A) pro forma method. 
B) relative fair value method. 
C) direct method. 
D) indirect method.

Question 9

Helium Corp.provides the following information for 2014 and 2015:   To one decimal, Helium's days payable outstanding for 2015 is

Accepted Answer

A) 43.6 days. 
B) 46.2 days. 
C) 47.2 days. 
D) 48.7 days. 
A) 43.6 days. 
B) 46.2 days. 
C) 47.2 days. 
D) 48.7 days.

Question 10

The payout ratio can be calculated by

Accepted Answer

A) dividing cash dividends per share by earnings per share. 
B) dividing cash dividends by net income less preferred dividends. 
C) dividing cash dividends by market price per share. 
D) dividing net income by cash dividends per share. 
A) dividing cash dividends per share by earnings per share. 
B) dividing cash dividends by net income less preferred dividends. 
C) dividing cash dividends by market price per share. 
D) dividing net income by cash dividends per share.

Question 11

Internet financial reporting Other Measurement and Disclosure Issues 23- 21 Discuss some of the issues involved with corporations reporting their results on the internet rather than in paper based formats.

Accepted Answer

Advantages of internet reporting include

Question 12

Which of the following should NOT be included in the current liabilities section of the statement of financial position?

Accepted Answer

A) trade accounts payable 
B) current portion of long term debt to be retired by non-current assets 
C) short-term zero-interest-bearing notes payable 
D) a liability due on demand (callable debt) 
A) trade accounts payable 
B) current portion of long term debt to be retired by non-current assets 
C) short-term zero-interest-bearing notes payable 
D) a liability due on demand (callable debt)

Question 13

At January 1, 2014, Neon Corp.owned a machine that had cost $100,000.The accumulated depreciation to date was $60,000, estimated residual value was $6,000, and fair value was $160,000.On January 4, 2014, this machine suffered major damage due to Argon Corp.'s actions and was written off as worthless.In October 2014, a court awarded damages of $160,000 against Argon in favour of Neon.At December 31, 2014, the final outcome of this case was awaiting appeal and was, therefore, uncertain.However, in the opinion of Neon's attorney, Argon's appeal will be denied.At December 31, 2014, what amount should Neon accrue for this gain contingency?

Accepted Answer

A) $160,000 
B) $130,000 
C) $100,000 
D) $0 
A) $160,000 
B) $130,000 
C) $100,000 
D) $0

Question 14

Pension accounting terminology Briefly explain the following terms:
a.Service cost
b.Interest cost
c.Past service costs
d.Vested benefits

Accepted Answer

a.The (current)service cost component of

Question 15

A constructive obligation arises when

Accepted Answer

A) the entity is legally obligated to honour the obligation. 
B) the entity makes an unconditional promise to pay money in the future. 
C) past or present company practice reveals the entity acknowledges a potential economic
Burden. 
D) the entity has a conditional obligation which becomes unconditional if an uncertain future
Event occurs. 
A) the entity is legally obligated to honour the obligation. 
B) the entity makes an unconditional promise to pay money in the future. 
C) past or present company practice reveals the entity acknowledges a potential economic
Burden. 
D) the entity has a conditional obligation which becomes unconditional if an uncertain future
Event occurs.

Question 16

Callable preferred shares

Accepted Answer

A) may be redeemed at any time at the shareholder's option. 
B) may be called or redeemed at the option of the issuing corporation. 
C) usually have voting rights. 
D) have rights to participate in any new share issuance. 
A) may be redeemed at any time at the shareholder's option. 
B) may be called or redeemed at the option of the issuing corporation. 
C) usually have voting rights. 
D) have rights to participate in any new share issuance.

Question 17

At December 31, 2014, the 10% bonds payable of Paisley Inc.had a carrying value of $760,000.The bonds, which had a face value of $800,000, were issued at a discount to yield 12%.The amortization of the bond discount had been recorded using the effective interest method.Interest was being paid on January 1 and July 1 of each year. The July 1, 2015 interest payment and discount amortization had been correctly recorded.On July 2, 2015, Paisley retired the bonds at 102.Ignoring income taxes, what is the loss that should be recorded on the early retirement of the bonds?

Accepted Answer

A) $16,000 
B) $44,800 
C) $50,400 
D) $56,000 
A) $16,000 
B) $44,800 
C) $50,400 
D) $56,000

Question 18

In jurisdictions where par value shares are legally allowed, the only real significance of par value is

Accepted Answer

A) to enable the shares to be callable or convertible. 
B) to require the corporation to pay dividends. 
C) to establish the maximum responsibility of a shareholder in the event of insolvency. 
D) to establish the maximum price at which the shares can be sold. 
A) to enable the shares to be callable or convertible. 
B) to require the corporation to pay dividends. 
C) to establish the maximum responsibility of a shareholder in the event of insolvency. 
D) to establish the maximum price at which the shares can be sold.

Question 19

The dollar amount of a cash dividend to be paid is determined on the date of

Accepted Answer

A) record. 
B) declaration. 
C) declaration or date of record, whichever is earlier. 
D) payment. 
A) record. 
B) declaration. 
C) declaration or date of record, whichever is earlier. 
D) payment.

Question 20

Pension plan calculations and journal entries On January 1, 2014, Prune Ltd.reported the following balances relating to their defined benefit pension plan:   Instructions 
a.Calculate the defined benefit obligation at December 31, 2014.
b.Calculate the fair value of plan assets at December 31, 2014.
c.Calculate pension expense for 2014.
d.Prepare the journal entries to record the pension expense and the contributions for 2014.

Accepted Answer

The answer of Pension plan calculations and journal entries On...

A bond's face value is also called

Zircon Ltd., a GST registrant, buys $4,500 worth of Office Supplies for their own use.The purchase is subject to 8% PST and 5% GST.What amount will be debited to the Office Supplies account as a result of this transaction?

A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following?

How would total shareholders' equity be affected by the declaration of each of the following?

The accounting problem in a lump sum sale of shares is the allocation of the proceeds between the classes of securities.One acceptable method of allocation is the

Helium Corp.provides the following information for 2014 and 2015: To one decimal, Helium's days payable outstanding for 2015 is

The payout ratio can be calculated by

Internet financial reporting Other Measurement and Disclosure Issues 23- 21 Discuss some of the issues involved with corporations reporting their results on the internet rather than in paper based formats.

Which of the following should NOT be included in the current liabilities section of the statement of financial position?

Pension accounting terminology Briefly explain the following terms: a.Service cost b.Interest cost c.Past service costs d.Vested benefits

A constructive obligation arises when

Callable preferred shares

In jurisdictions where par value shares are legally allowed, the only real significance of par value is

The dollar amount of a cash dividend to be paid is determined on the date of

Intermediate Accounting Volume 1

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Exam 2: Intermediate Accounting Volume 2

A bond's face value is also called

Zircon Ltd., a GST registrant, buys $4,500 worth of Office Supplies for their own use.The purchase is subject to 8% PST and 5% GST.What amount will be debited to the Office Supplies account as a result of this transaction?

A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following?

How would total shareholders' equity be affected by the declaration of each of the following?

The accounting problem in a lump sum sale of shares is the allocation of the proceeds between the classes of securities.One acceptable method of allocation is the

Helium Corp.provides the following information for 2014 and 2015: To one decimal, Helium's days payable outstanding for 2015 is

The payout ratio can be calculated by

Internet financial reporting Other Measurement and Disclosure Issues 23- 21 Discuss some of the issues involved with corporations reporting their results on the internet rather than in paper based formats.

Which of the following should NOT be included in the current liabilities section of the statement of financial position?

Pension accounting terminology Briefly explain the following terms: a.Service cost b.Interest cost c.Past service costs d.Vested benefits

A constructive obligation arises when

Callable preferred shares

In jurisdictions where par value shares are legally allowed, the only real significance of par value is

The dollar amount of a cash dividend to be paid is determined on the date of

Intermediate Accounting Volume 1

Filters