Question 1

Which of the following are included in the employer's "Payroll Tax Expense"?

Accepted Answer

A) employee income tax deducted, employer portion of CPP/QPP and EI 
B) employer portion of CPP/QPP and EI, union dues 
C) employer portion of CPP/QPP and EI only 
D) employer portion of EI, union dues, and employee income tax deducted 
A) employee income tax deducted, employer portion of CPP/QPP and EI 
B) employer portion of CPP/QPP and EI, union dues 
C) employer portion of CPP/QPP and EI only 
D) employer portion of EI, union dues, and employee income tax deducted

Question 2

Vilnius Corporation has 100,000 no par value common shares authorized, issued and outstanding.All 100,000 shares were issued at $90 per share.Retained earnings are $250,000. If 2,000 shares were reacquired at $98 and cancelled, shareholders' equity would decrease by

Accepted Answer

A) $ 0. 
B) $ 16,000. 
C) $180,000. 
D) $196,000. 
A) $ 0. 
B) $ 16,000. 
C) $180,000. 
D) $196,000.

Question 3

On September 1, 2014, Coffee Ltd.issued a $1,800,000, 12% note to Humungous Bank, payable in three equal annual principal payments of $600,000.On this date, the bank's prime rate was 11%.The first payment for interest and principal was made on September 1, 2015.At December 31, 2015, Coffee should record accrued interest payable of

Accepted Answer

A) $72,000. 
B) $66,000. 
C) $48,000. 
D) $44,000. 
A) $72,000. 
B) $66,000. 
C) $48,000. 
D) $44,000.

Question 4

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 $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive?

Accepted Answer

A) $ 0 
B) $ 8,000 
C) $16,000 
D) $21,000 
A) $ 0 
B) $ 8,000 
C) $16,000 
D) $21,000

Question 5

Premiums Modern Music gives its customers coupons which are redeemable for a poster plus a Hens and Chicks DVD.One coupon is issued for each dollar of sales.On presentation of 100 coupons and $5.00 cash, the customer receives the poster and DVD.Modern estimates that 80% of the coupons will be presented for redemption.Sales for Year One were $1,050,000, and 510,000 coupons were redeemed.Sales for Year Two were $1,260,000, and 1,275,000 coupons were redeemed.Modern bought 30,000 posters at $2.00 each, and 30,000 DVDs at $5.50 each. Instructions Prepare the following entries for both years, assuming all the coupons expected to be redeemed from Year One were redeemed by the end of Year Two.

Accepted Answer

@#IMG-DLM& Non-Finan

Question 6

Use the following information for questions. Instanbul Corp.has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares.Dividends have been paid every year except last year and the current year.The carrying value of the preferred shares is $200,000 and of the common shares is $300,000.
-Presented below is information related to Madrid Corporation:   The total shareholders' equity of Madrid Corporation is

Accepted Answer

A) $6,270,000. 
B) $6,300,000. 
C) $6,390,000. 
D) $6,510,000. 
A) $6,270,000. 
B) $6,300,000. 
C) $6,390,000. 
D) $6,510,000.

Question 7

A liability for compensated absences such as vacations, for which it is expected that employees will be paid, should

Accepted Answer

A) be accrued during the period when the compensated time is expected to be used by
Employees. 
B) be accrued during the period following vesting. 
C) be accrued during the period when earned. 
D) not be accrued unless a written contractual obligation exists. 
A) be accrued during the period when the compensated time is expected to be used by
Employees. 
B) be accrued during the period following vesting. 
C) be accrued during the period when earned. 
D) not be accrued unless a written contractual obligation exists.

Question 8

According to the Exposure Draft of Proposed Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets

Accepted Answer

A) only conditional obligations are recorded. 
B) liabilities must have measurement certainty. 
C) the term "contingent liabilities" is eliminated. 
D) a conditional obligation related to an unconditional obligation is not recognized. 
A) only conditional obligations are recorded. 
B) liabilities must have measurement certainty. 
C) the term "contingent liabilities" is eliminated. 
D) a conditional obligation related to an unconditional obligation is not recognized.

Question 9

The denominator of the days payable outstanding ratio can be

Accepted Answer

A) average daily sales. 
B) average trade accounts payable. 
C) average daily cost of goods sold. 
D) average trade accounts receivable. 
A) average daily sales. 
B) average trade accounts payable. 
C) average daily cost of goods sold. 
D) average trade accounts receivable.

Question 10

Amortization of discount or premium On May 1, 2014, Salinas Industries Ltd.issued $2,000,000, 8% bonds and received cash proceeds of $1,774,526.The bonds pay interest semi-annually on May 1 and November 1.The maturity date on these bonds is November 1, 2026.Salinas uses the effective interest method of amortizing bond discounts and premiums.The bonds were sold to yield an effective interest rate of 10%. Instructions Calculate the total dollar amount of discount or premium amortization during the first year that these bonds were outstanding.Show calculations and round values to the nearest dollar.

Accepted Answer

The answer of Amortization of discount or premium On May...

Question 11

Shareholders' equity is generally classified into two major categories:

Accepted Answer

A) contributed capital and donated capital. 
B) contributed surplus and retained earnings. 
C) retained earnings and accumulated other comprehensive income. 
D) earned capital and contributed capital 
A) contributed capital and donated capital. 
B) contributed surplus and retained earnings. 
C) retained earnings and accumulated other comprehensive income. 
D) earned capital and contributed capital

Question 12

When shares are purchased or redeemed and cancelled, guidelines have been established for the sequence of accounts to adjust when allocating the cost.Which of the following is the first account to be adjusted?

Accepted Answer

A) a Contributed Surplus account created from a previous reacquisition of the same class of
Shares 
B) the Share Capital account 
C) Retained Earnings 
D) Accumulated Other Comprehensive Income 
A) a Contributed Surplus account created from a previous reacquisition of the same class of
Shares 
B) the Share Capital account 
C) Retained Earnings 
D) Accumulated Other Comprehensive Income

Question 13

The rate of interest actually earned by bondholders is called the

Accepted Answer

A) stated rate. 
B) coupon rate. 
C) dividend rate. 
D) effective yield or market rate. 
A) stated rate. 
B) coupon rate. 
C) dividend rate. 
D) effective yield or market rate.

Question 14

The times interest earned ratio is calculated by dividing

Accepted Answer

A) net income by interest expense. 
B) income before taxes by interest expense. 
C) income before income taxes and interest expense by interest expense. 
D) net income and interest expense by interest expense. 
A) net income by interest expense. 
B) income before taxes by interest expense. 
C) income before income taxes and interest expense by interest expense. 
D) net income and interest expense by interest expense.

Question 15

According to the CBCA, when a company purchases its own shares on the market

Accepted Answer

A) they are recorded with a debit to Repurchased Shares. 
B) the amount paid is deducted from the share class to which they belong. 
C) they must be cancelled. 
D) the excess of purchase price over cost is a loss. 
A) they are recorded with a debit to Repurchased Shares. 
B) the amount paid is deducted from the share class to which they belong. 
C) they must be cancelled. 
D) the excess of purchase price over cost is a loss.

Question 16

For calendar 2014, Budapest Corp.reported net income of $29,280 and earnings per share of $2.46.There were 12,000 common shares outstanding during 2014.On Dec 31, 2014, the market price for Budapest's common shares was $32.To the nearest whole number, what is Budapest's price earnings ratio at Dec 31, 2014?

Accepted Answer

A) 13 
B) 32 
C) 375 
D) 915 
A) 13 
B) 32 
C) 375 
D) 915

Question 17

In a troubled debt restructuring in which the debt is continued with modified terms and the Long-Term Financial Liabilities 14- 11 carrying amount of the debt is less than the total future cash flows,

Accepted Answer

A) an extraordinary gain should be recognized by the debtor. 
B) a gain should be recognized by the debtor. 
C) a new effective interest rate must be calculated. 
D) no interest expense or revenue should be recognized in the future. 
A) an extraordinary gain should be recognized by the debtor. 
B) a gain should be recognized by the debtor. 
C) a new effective interest rate must be calculated. 
D) no interest expense or revenue should be recognized in the future.

Question 18

Presented below is information available for Radon Corp.:   Total current liabilities are $100,000.To two decimals, Radon's acid-test ratio is

Accepted Answer

A) 5.60. 
B) 5.30. 
C) 2.80. 
D) .36. 
A) 5.60. 
B) 5.30. 
C) 2.80. 
D) .36.

Question 19

Segmented reporting (IFRS requirements) A central issue in reporting on operating segments of a business enterprise is the determination of which segments are reportable under IFRS. Instructions
a.According to IFRS, what are the tests to determine whether or not an operating segment is
reportable?
b.What is the test to determine if enough operating segments have been separately reported
upon, and what is the guideline on the maximum number of operating segments to be
shown?

Accepted Answer

a.There are three basic tests to be appl

Question 20

Which of the following arrangements would NOT represent a possible example of "off- balance-sheet financing"?

Accepted Answer

A) non-consolidated subsidiaries 
B) variable interest entities 
C) operating leases 
D) capital or financing leases 
A) non-consolidated subsidiaries 
B) variable interest entities 
C) operating leases 
D) capital or financing leases

Which of the following are included in the employer's "Payroll Tax Expense"?

Vilnius Corporation has 100,000 no par value common shares authorized, issued and outstanding.All 100,000 shares were issued at $90 per share.Retained earnings are $250,000. If 2,000 shares were reacquired at $98 and cancelled, shareholders' equity would decrease by

A liability for compensated absences such as vacations, for which it is expected that employees will be paid, should

According to the Exposure Draft of Proposed Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets

The denominator of the days payable outstanding ratio can be

Shareholders' equity is generally classified into two major categories:

When shares are purchased or redeemed and cancelled, guidelines have been established for the sequence of accounts to adjust when allocating the cost.Which of the following is the first account to be adjusted?

The rate of interest actually earned by bondholders is called the

The times interest earned ratio is calculated by dividing

According to the CBCA, when a company purchases its own shares on the market

In a troubled debt restructuring in which the debt is continued with modified terms and the Long-Term Financial Liabilities 14- 11 carrying amount of the debt is less than the total future cash flows,

Presented below is information available for Radon Corp.: Total current liabilities are $100,000.To two decimals, Radon's acid-test ratio is

Which of the following arrangements would NOT represent a possible example of "off- balance-sheet financing"?

Intermediate Accounting Volume 1

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Exam 2: Intermediate Accounting Volume 2

Which of the following are included in the employer's "Payroll Tax Expense"?

Vilnius Corporation has 100,000 no par value common shares authorized, issued and outstanding.All 100,000 shares were issued at $90 per share.Retained earnings are $250,000. If 2,000 shares were reacquired at $98 and cancelled, shareholders' equity would decrease by

A liability for compensated absences such as vacations, for which it is expected that employees will be paid, should

According to the Exposure Draft of Proposed Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets

The denominator of the days payable outstanding ratio can be

Shareholders' equity is generally classified into two major categories:

When shares are purchased or redeemed and cancelled, guidelines have been established for the sequence of accounts to adjust when allocating the cost.Which of the following is the first account to be adjusted?

The rate of interest actually earned by bondholders is called the

The times interest earned ratio is calculated by dividing

According to the CBCA, when a company purchases its own shares on the market

In a troubled debt restructuring in which the debt is continued with modified terms and the Long-Term Financial Liabilities 14- 11 carrying amount of the debt is less than the total future cash flows,

Presented below is information available for Radon Corp.: Total current liabilities are $100,000.To two decimals, Radon's acid-test ratio is

Which of the following arrangements would NOT represent a possible example of "off- balance-sheet financing"?

Intermediate Accounting Volume 1

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