Question 1

When firms use derivatives effectively to manage risks,the net gain or loss each period should be relatively ____________________.

Accepted Answer

The answer of When firms use derivatives effectively to manage...

Question 2

A large manufacturer recently changed its cost-flow assumption method for inventories at the beginning of 2012.The manufacturer has been in operation for almost 40 years,and for the last decade,it has reported moderate growth in revenues.The firm changed from the LIFO method to the FIFO method and reported the following information:
   
Calculate the inventory turnover ratio for 2012 using the LIFO and FIFO cost-flow assumption methods.Explain why the costs assigned to inventory under LIFO at the end of 2011 and 2012 are so much less than they are under FIFO.

Accepted Answer

LIFO and FIFO Cost-Flow Assumption for I

Question 3

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company.
 $\begin{array}{|l|r}
\hline \text { Prior service cost granted in a 2012 plan amendment } & \$ 115,000 \
\hline \text { Interest on PBO } & 73,000 \
\hline \text { Actual return on plan assets } & 101,000 \
\hline \text { Service cost } & 84,000 \
\hline \text { Contribution sent to plan trustee } & 62,000 \
\hline \text { Benefit payments to retirees } & 24,000 \
\hline \text { Liability loss (gain) } & (37,000) \
\hline \text { FMV of plan assets, January 1, 2012 } & 735,000 \
\hline \text { PBO, January 1,2012 } & 814,000
\end{array}$
 
What amount of asset or liability will be reported on the balance sheet at December 31,2012?

Accepted Answer

Reconcile

Question 4

Under the accrual method of accounting when a firm has substantially completed its value-adding activities it should recognize ____________________.

Accepted Answer

The answer of Under the accrual method of accounting when...

Question 5

A derivative has one or more ____________________,which are a specified interest rate,commodity price,foreign exchange rate,or other variable.

Accepted Answer

The answer of A derivative has one or more ____________________,which...

Question 6

Falcon Networks
Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below:
  
-Using the information provided by Falcon Networks determine the combined effective tax rate for 2012.

Accepted Answer

A)  33.52% 
B)  35.00% 
C)  42.25% 
D)  45.49% 
A)  33.52% 
B)  35.00% 
C)  42.25% 
D)  45.49%

Question 7

The following schedule was taken out of the inventory records for the Happy Dog Company
  
-The following information is available from Sheldon Corp.:
 $$\begin{array}{l}
\text { Infarmaton fram the Balance Shet: }\
\begin{array} { l l l } 
& \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 1 } \
\text { Depreciable As5ets } & \$ 2,458,600 & \$ 1,985,400 \
\text { Accumulated Depreciation } & ( 1,350,700 ) & ( 1,046,000 ) \
\text { Depreciable A55ets (Net) } & \$ 1,107,900 & \$ 939,400
\end{array}
\end{array}$$ 
   
Use the information above to calculate the following: a.Average age of the depreciable assets
b.Average remaining useful life of the depreciable assets

Accepted Answer

a.$1,350,00 / $384,5

Question 8

Which of the following would not be suggestive of a company recognizing sales too early?

Accepted Answer

A)  large and volatile amounts of uncollectible accounts receivable 
B)  excessive warranty expenditures 
C)  large growth in accounts receivable 
D)  unusually large amount of returned goods 
A)  large and volatile amounts of uncollectible accounts receivable 
B)  excessive warranty expenditures 
C)  large growth in accounts receivable 
D)  unusually large amount of returned goods

Question 9

Typical U.S.GAAP disclosures for deferred income taxes include all of the following except:

Accepted Answer

A)  Components of income tax expense 
B)  Components of income before taxes 
C)  Reconciliation of income taxes at statutory rate with income tax expense 
D)  Components of permanent tax differences 
A)  Components of income tax expense 
B)  Components of income before taxes 
C)  Reconciliation of income taxes at statutory rate with income tax expense 
D)  Components of permanent tax differences

Question 10

A company that uses LIFO will experience a ______________________________ during a period it sells more units than it purchases.

Accepted Answer

The answer of A company that uses LIFO will experience...

Question 11

Upton Company has consistently used the percentage-of-completion method of recognizing income.In 2010,Upton started on an $18,000,000 construction contract that was completed in 2012.The following information was taken from Upton's 2010 accounting records:  
What amount of revenue should Upton recognize on the contract in 2010?

Accepted Answer

A)  $6,000,000 
B)  $5,400,000 
C)  $9,000,000 
D)  $0 
A)  $6,000,000 
B)  $5,400,000 
C)  $9,000,000 
D)  $0

Question 12

Deferred tax assets result in future tax ____________________ when temporary differences reverse.

Accepted Answer

The answer of Deferred tax assets result in future tax...

Question 13

All of the following are conditions for revenue recognition outlined by SAB 104 except:

Accepted Answer

A)  There is pervasive evidence that an arrangement exists. 
B)  Delivery has occurred or services have been performed. 
C)  The seller's price to the buyer can be variable. 
D)  Collectability is reasonably assured. 
A)  There is pervasive evidence that an arrangement exists. 
B)  Delivery has occurred or services have been performed. 
C)  The seller's price to the buyer can be variable. 
D)  Collectability is reasonably assured.

Question 14

Which of the following statements best describes the difference between U.S.GAAP and IFRS with respect to revenue recognition?

Accepted Answer

A)  IFRS has a substantial amount of industry specific guidance for revenue recognition. 
B)  IFRS revenue recognition is not consistent with U.S. GAAP in principle. 
C)  There are subtle differences in the wording of U.S. GAAP as compared with IFRS. 
D)  IFRS has four criteria and U.S. GAAP has five conditions for revenue recognition. 
A)  IFRS has a substantial amount of industry specific guidance for revenue recognition. 
B)  IFRS revenue recognition is not consistent with U.S. GAAP in principle. 
C)  There are subtle differences in the wording of U.S. GAAP as compared with IFRS. 
D)  IFRS has four criteria and U.S. GAAP has five conditions for revenue recognition.

Question 15

If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries,the company may seek out more tax effective ways of operating abroad through all of the following means except:

Accepted Answer

A)  Assess whether transfer prices or cost allocations can be adjusted to shift income
From high-tax-rate to low-tax-rate jurisdictions. 
B)  Shift from domestic to foreign borrowing to increase deductions for interest against
Foreign-source income. 
C)  Shift from debt to equity financing of foreign operations to increase interest deductions
Against foreign-source income. 
D)  Shift some operations, like marketing, to the United States where the average tax rate is lower. 
A)  Assess whether transfer prices or cost allocations can be adjusted to shift income
From high-tax-rate to low-tax-rate jurisdictions. 
B)  Shift from domestic to foreign borrowing to increase deductions for interest against
Foreign-source income. 
C)  Shift from debt to equity financing of foreign operations to increase interest deductions
Against foreign-source income. 
D)  Shift some operations, like marketing, to the United States where the average tax rate is lower.

Question 16

One sign that a company may be recognizing sales too early is that it has unusually large amounts of ______________________________.

Accepted Answer

The answer of One sign that a company may be...

Question 17

Under current U.S.GAAP unrealized gains and losses from four balance sheet items are reported in accumulated other comprehensive income or loss.Which of the following is not one of the balance sheet items?

Accepted Answer

A)  Derivatives held as cash flow hedges. 
B)  Deferred tax assets related to net operating loss carryforwards. 
C)  Minimum pension obligations. 
D)  Investment securities classified as available for sale. 
A)  Derivatives held as cash flow hedges. 
B)  Deferred tax assets related to net operating loss carryforwards. 
C)  Minimum pension obligations. 
D)  Investment securities classified as available for sale.

Question 18

Presented below is pension information related to Roberts Corp.for the year 2012:  
The amount of pension expense to be reported for 2012 is

Accepted Answer

A)  $46,000 
B)  $48,000 
C)  $54,000 
D)  $40,000 
A)  $46,000 
B)  $48,000 
C)  $54,000 
D)  $40,000

Question 19

All of the following conditions signal that revenue recognition may have been recorded too early except:

Accepted Answer

A)  large and volatile amounts of uncollectible accounts receivable. 
B)  a decrease in the number of days accounts receivable are outstanding. 
C)  unusually large amounts of returned goods. 
D)  excessive warranty expenditures. 
A)  large and volatile amounts of uncollectible accounts receivable. 
B)  a decrease in the number of days accounts receivable are outstanding. 
C)  unusually large amounts of returned goods. 
D)  excessive warranty expenditures.

Question 20

Global,Inc.provides consulting services throughout the world.The company pays taxes to the nation where revenues are earned.Information about the company's taxes are presented below:
   
Required:
a.Using the information provided for Global,prepare the company's journal entry to record income taxes for 2012 and 2011.
b.Using the information provided for Global,determine the company's effective tax rate for 2012 and 2011.

Accepted Answer

a.
@#IMG-DLM&
b. The company's effective

When firms use derivatives effectively to manage risks,the net gain or loss each period should be relatively ____________________.

Under the accrual method of accounting when a firm has substantially completed its value-adding activities it should recognize ____________________.

A derivative has one or more ____________________,which are a specified interest rate,commodity price,foreign exchange rate,or other variable.

Falcon Networks Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below: -Using the information provided by Falcon Networks determine the combined effective tax rate for 2012.

Which of the following would not be suggestive of a company recognizing sales too early?

Typical U.S.GAAP disclosures for deferred income taxes include all of the following except:

A company that uses LIFO will experience a ______________________________ during a period it sells more units than it purchases.

Deferred tax assets result in future tax ____________________ when temporary differences reverse.

All of the following are conditions for revenue recognition outlined by SAB 104 except:

Which of the following statements best describes the difference between U.S.GAAP and IFRS with respect to revenue recognition?

If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries,the company may seek out more tax effective ways of operating abroad through all of the following means except:

One sign that a company may be recognizing sales too early is that it has unusually large amounts of ______________________________.

Under current U.S.GAAP unrealized gains and losses from four balance sheet items are reported in accumulated other comprehensive income or loss.Which of the following is not one of the balance sheet items?

Presented below is pension information related to Roberts Corp.for the year 2012: The amount of pension expense to be reported for 2012 is

All of the following conditions signal that revenue recognition may have been recorded too early except:

Overview of Financial Reporting, financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Accounting Quality

Financing Activities

Investing Activities

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow-Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

Exam 9: Operating Activities

When firms use derivatives effectively to manage risks,the net gain or loss each period should be relatively ____________________.

Under the accrual method of accounting when a firm has substantially completed its value-adding activities it should recognize ____________________.

A derivative has one or more ____________________,which are a specified interest rate,commodity price,foreign exchange rate,or other variable.

Falcon Networks Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below: -Using the information provided by Falcon Networks determine the combined effective tax rate for 2012.

Which of the following would not be suggestive of a company recognizing sales too early?

Typical U.S.GAAP disclosures for deferred income taxes include all of the following except:

A company that uses LIFO will experience a ______________________________ during a period it sells more units than it purchases.

Deferred tax assets result in future tax ____________________ when temporary differences reverse.

All of the following are conditions for revenue recognition outlined by SAB 104 except:

Which of the following statements best describes the difference between U.S.GAAP and IFRS with respect to revenue recognition?

If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries,the company may seek out more tax effective ways of operating abroad through all of the following means except:

One sign that a company may be recognizing sales too early is that it has unusually large amounts of ______________________________.

Under current U.S.GAAP unrealized gains and losses from four balance sheet items are reported in accumulated other comprehensive income or loss.Which of the following is not one of the balance sheet items?

Presented below is pension information related to Roberts Corp.for the year 2012: The amount of pension expense to be reported for 2012 is

All of the following conditions signal that revenue recognition may have been recorded too early except:

Overview of Financial Reporting, financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Accounting Quality

Financing Activities

Investing Activities

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow-Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters