Question 1

____________________ over sufficiently long time periods equals cash inflows minus cash outflows from operating,investing,and financing activities

Accepted Answer

The answer of ____________________ over sufficiently long time periods equals...

Question 2

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company.
   What amount of asset or liability will be reported on the balance sheet at December 31,2012?

Accepted Answer

The answer of Given the following information,compute December 31,2012 projected...

Question 3

Parnell Industries Parnell Industries sold a copy machine to Ranger Inc.on January 1,2012.The sale price of the machine was $4,000,000 and the machine cost $3,200,000 for Parnell to manufacture.Ranger will make four payments at the end of each year,beginning with 2012,of $1,261,883 each.The four payments of $1,261,883 when discounted at 10% have a present value of $4,000,000.An amortization table appears below:
  If Parnell Industries is certain that it will collect all four payments from Ranger Inc.what amount of gross profit should Parnell recognize in 2012 from the sale?

Accepted Answer

A)  $0 
B)  $861,883 
C)  $172,377 
D)  $800,000 
A)  $0 
B)  $861,883 
C)  $172,377 
D)  $800,000

Question 4

The following information is taken from Satin financial statements (amounts in thousands):
   Inventory Footnote: If the first-in,first-out method of accounting for inventory had been used,inventory would have been approximately $26.9 million and $25.1 million higher than reported at 12/31/2010 and 12/31/2009,respectively.
Required:
a.Calculate what inventory would have been at 12/31/2010 and 12/31/2009 had the FIFO inventory method been used.
b.What would net income for the year ended 12/31/2010,have been if the FIFO inventory method been used?
c.Calculate what stockholders' equity would have been at 12/31/2010 and 12/31/2009 had the FIFO inventory method been used.

Accepted Answer

The answer of The following information is taken from Satin...

Question 5

Gorilla,Corp.implemented a defined-benefit pension plan for its employees on January 2,2012.The following data are provided for year 2012,as of December 31,2012.   What amount should Gorilla record as additional minimum pension liability at December 31,2012?

Accepted Answer

A)  $0 
B)  $5,000 
C)  $20,000 
D)  $45,000 
A)  $0 
B)  $5,000 
C)  $20,000 
D)  $45,000

Question 6

Bower Construction Comp.has consistently used the percentage-of-completion method for recognizing revenue on its long-term contracts.During 2010 Bower entered into a fixed-price contract to construct an office building for $8,000,000.Information relating to the contract is as follows:
   Required (Show Calculations):
C1.Compute contract costs incurred during 2010,2011 and 2012.
2.Determine how much gross profit Bower should recognize in 2012.
3.Under what conditions would it not be reasonable for a company to use the percentage of completion method of recognizing revenue on long-term contracts?
4.If Bower had used the completed contract method of accounting for this long-term contract how much gross profit would it have earned in 2010,2011 and 2012?

Accepted Answer

The answer of Bower Construction Comp.has consistently used the percentage-of-completion...

Question 7

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 federal 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 8

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:

Accepted Answer

Calculate the inventory turnover ratio f

Question 9

Magnum Construction contracted to construct a factory building for $545,000.The company started during 2012 and was completed in 2013.Information relating to the contract is as follows:
   Required:
Record the preceding transactions in Magnum's books under completed-contract and the percentage of completion methods.Determine amounts that will be reported on the balance sheet at the end of 2012.

Accepted Answer

The answer of Magnum Construction contracted to construct a factory...

Question 10

The following information is available from Sheldon Corp.:
     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 11

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 12

U.S.GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

Accepted Answer

in the es

Question 13

Pronto,Inc.is a major producer of printing equipment.Pronto uses a LIFO cost-flow assumption for inventories.The company's tax rate is 35%.Below is selected financial data for the company.
   Required:
a.The excess of FIFO over LIFO inventories was $25 million on December 31,2013,$28.5 million on December 31,2012 and $22 million on December 31,2006.Compute the cost of goods sold for Pronto,Inc.for years 2013 and 2012 assuming that it had used a FIFO assumption.
b.Compute the inventory turnover ratio for Pronto,Inc.for years 2013 and 2012 using a LIFO cost-flow assumption.
c.Compute the inventory turnover ratio for Pronto,Inc.for years 2013 and 2012 using a FIFO cost-flow assumption.
d.Compute the rate of return on assets for years 2013 and 2012 based on the reported amounts.Disaggregate ROA into profit margin and asset turnover components.
e.Compute the rate of return on assets for years 2013 and 2012 assuming that Pronto,Inc.had used the FIFO method of accounting for inventories.Disaggregate ROA into profit margin and asset turnover components.

Accepted Answer

Required:

Question 14

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

Accepted Answer

The answer of ____________________ differences result from including revenues and...

Question 15

Funtime Corporation Assume that Funtime Corp.has agreed to construct a new playground for Durrey County for $2,300,000.Construction of the new playground will begin on March 17,2012 and is expected to be completed in August 2013.At the signing of the contract Funtime Corp.estimates that the it will cost $1,600,000 to build the playground.
At the end of 2012 Funtime provided the following information about the project:
  What percentage is playground complete?

Accepted Answer

A)  62.5% 
B)  43.5% 
C)  55.6% 
D)  50.0% 
A)  62.5% 
B)  43.5% 
C)  55.6% 
D)  50.0%

Question 16

Which of the following is not a disclosure for derivatives required under SFAS No.133?

Accepted Answer

A)  Firms must describe their risk management strategy and how particular derivatives help accomplish their hedging objectives. 
B)  For fair value and cash flow hedges, firms must disclose the net gain or loss recognized in earnings resulting from the hedges' ineffectiveness and the line item on the income statement that includes this net gain or loss. 
C)  For cash flow hedges, firms must describe the transactions or events that will result in reclassifying gains and losses from other comprehensive income to net income
And the estimated amount of such reclassifications during the next 12 months. 
D)  The specifics of a model that simulates with a 95 percent or other confidence level the minimum, maximum, or average amount of loss that a firm would incur. 
A)  Firms must describe their risk management strategy and how particular derivatives help accomplish their hedging objectives. 
B)  For fair value and cash flow hedges, firms must disclose the net gain or loss recognized in earnings resulting from the hedges' ineffectiveness and the line item on the income statement that includes this net gain or loss. 
C)  For cash flow hedges, firms must describe the transactions or events that will result in reclassifying gains and losses from other comprehensive income to net income
And the estimated amount of such reclassifications during the next 12 months. 
D)  The specifics of a model that simulates with a 95 percent or other confidence level the minimum, maximum, or average amount of loss that a firm would incur.

Question 17

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

Accepted Answer

A)  accounts receivable turnover 
B)  the ratio of bad debt expense to sales 
C)  the ratio of sales returns to sales 
D)  the ratio of cost of sales to sales 
A)  accounts receivable turnover 
B)  the ratio of bad debt expense to sales 
C)  the ratio of sales returns to sales 
D)  the ratio of cost of sales to sales

Question 18

Derivative instruments acquired to hedge exposure to variability in expected future cash are _________________________ hedges.

Accepted Answer

The answer of Derivative instruments acquired to hedge exposure to...

Question 19

Derivative instruments acquired to hedge exposure to changes in the fair value of an asset or liability are ______________________________ hedges.

Accepted Answer

The answer of Derivative instruments acquired to hedge exposure to...

Question 20

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.

____________________ over sufficiently long time periods equals cash inflows minus cash outflows from operating,investing,and financing activities

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company. What amount of asset or liability will be reported on the balance sheet at December 31,2012?

Gorilla,Corp.implemented a defined-benefit pension plan for its employees on January 2,2012.The following data are provided for year 2012,as of December 31,2012. What amount should Gorilla record as additional minimum pension liability at December 31,2012?

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 federal effective tax rate for 2012.

The following information is available from Sheldon Corp.: Use the information above to calculate the following: a.Average age of the depreciable assets b.Average remaining useful life of the depreciable assets

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.

U.S.GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

Which of the following is not a disclosure for derivatives required under SFAS No.133?

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

Derivative instruments acquired to hedge exposure to variability in expected future cash are _________________________ hedges.

Derivative instruments acquired to hedge exposure to changes in the fair value of an asset or liability are ______________________________ hedges.

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

Financing Activities

Investing Activities

Accounting Quality

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 8: Operating Activities

____________________ over sufficiently long time periods equals cash inflows minus cash outflows from operating,investing,and financing activities

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company. What amount of asset or liability will be reported on the balance sheet at December 31,2012?

Gorilla,Corp.implemented a defined-benefit pension plan for its employees on January 2,2012.The following data are provided for year 2012,as of December 31,2012. What amount should Gorilla record as additional minimum pension liability at December 31,2012?

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 federal effective tax rate for 2012.

The following information is available from Sheldon Corp.: Use the information above to calculate the following: a.Average age of the depreciable assets b.Average remaining useful life of the depreciable assets

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.

U.S.GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

Which of the following is not a disclosure for derivatives required under SFAS No.133?

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

Derivative instruments acquired to hedge exposure to variability in expected future cash are _________________________ hedges.

Derivative instruments acquired to hedge exposure to changes in the fair value of an asset or liability are ______________________________ hedges.

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

Financing Activities

Investing Activities

Accounting Quality

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