Question 1

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

Accepted Answer

cost of goods sold

Question 2

___________________________________ is primarily a question of timing.

Accepted Answer

Revenue recognition

Question 3

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

Accepted Answer

ending inventory

Question 4

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 5

Regarding actuarial assumptions,firms must disclose in notes to the financial statements all of the following except:

Accepted Answer

A)  the discount rate used to compute the pension benefit obligation. 
B)  the expected rate of return on pension investments. 
C)  estimates of the number of retirees over the future 10 years. 
D)  the rate of compensation increase. 
A)  the discount rate used to compute the pension benefit obligation. 
B)  the expected rate of return on pension investments. 
C)  estimates of the number of retirees over the future 10 years. 
D)  the rate of compensation increase.

Question 6

Under U.S.GAAP,application of the LIFO and FIFO inventory methods result in differences in the balance sheet,income statement and cash flow statement.Compare and contrast the effect of the two methods on each financial statement and determine the advantages and disadvantages of each method.

Accepted Answer

The answer of Under U.S.GAAP,application of the LIFO and FIFO...

Question 7

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 8

When input prices are increasing,companies that use the LIFO method of accounting for inventory will report:

Accepted Answer

A)  Lower cost of goods sold amounts in comparison to the FIFO method 
B)  Higher sales amounts in comparison to the FIFO method 
C)  Higher ending inventory amounts in comparison to the FIFO method 
D)  Lower gross profit margins in comparison to the FIFO method 
A)  Lower cost of goods sold amounts in comparison to the FIFO method 
B)  Higher sales amounts in comparison to the FIFO method 
C)  Higher ending inventory amounts in comparison to the FIFO method 
D)  Lower gross profit margins in comparison to the FIFO method

Question 9

What are the five steps to apply the core principles of revenue recognition?

Accepted Answer

1)Identify the contract with a customer.

Question 10

Income tax expense consists of two components,the ____________________ portion and the ____________________ portion.

Accepted Answer

The answer of Income tax expense consists of two components,the...

Question 11

A company may try to paint a favorable picture of itself by accelerating the timing of revenues or estimating the collectible amounts too aggressively.In these cases the quality of accounting information declines because it does not represent the company's true economic condition and may not be sustainable.List four conditions that might suggest that a company is recognizing revenues too early?

Accepted Answer

The answer of A company may try to paint a...

Question 12

What are the four disclosures required by U.S.GAAP relating to income taxes?

Accepted Answer

1)Components of the provision for income

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

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Accepted Answer

A permanent difference arises when,for e

Question 15

Recording municipal bond interest received in the general ledger will generate a(n)_________________ difference

Accepted Answer

The answer of Recording municipal bond interest received in the...

Question 16

Which of the following accounts would not be considered a reserve account?

Accepted Answer

A)  Allowance for Doubtful Accounts 
B)  Estimated Warranty Liability 
C)  Prepaid Expense 
D)  Accumulated Depreciation 
A)  Allowance for Doubtful Accounts 
B)  Estimated Warranty Liability 
C)  Prepaid Expense 
D)  Accumulated Depreciation

Question 17

Dividing a company's income tax expense by its book income before income taxes provides the company's ___________________________________.

Accepted Answer

The answer of Dividing a company's income tax expense by...

Question 18

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

Accepted Answer

The answer of The statement of cash flows allows the...

Question 19

Falcon Networks
Falcon Networks is a leading semiconductor company with operations in 17 different countries.Information about the company's taxes appears below:
  
-Based on the information provided by Falcon Networks how much cash did income taxes use during 2012?

Accepted Answer

A)  $154.19 million 
B)  $54.17 million 
C)  $208.36 million 
D)  $284.84 million 
A)  $154.19 million 
B)  $54.17 million 
C)  $208.36 million 
D)  $284.84 million

Question 20

Which of the following is not part of the balance sheet approach when computing income tax expense?

Accepted Answer

A)  Identifying at each balance sheet date all differences between the book basis of assets,liabilities,and tax loss carryforwards 
B)  Eliminating permanent differences between book and tax basis. 
C)  Eliminating deferred tax assets. 
D)  Assessing the likelihood that the firm will realize the benefits of deferred tax assets in
The future. 
A)  Identifying at each balance sheet date all differences between the book basis of assets,liabilities,and tax loss carryforwards 
B)  Eliminating permanent differences between book and tax basis. 
C)  Eliminating deferred tax assets. 
D)  Assessing the likelihood that the firm will realize the benefits of deferred tax assets in
The future.

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

___________________________________ is primarily a question of timing.

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

Regarding actuarial assumptions,firms must disclose in notes to the financial statements all of the following except:

Under U.S.GAAP,application of the LIFO and FIFO inventory methods result in differences in the balance sheet,income statement and cash flow statement.Compare and contrast the effect of the two methods on each financial statement and determine the advantages and disadvantages of each method.

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

When input prices are increasing,companies that use the LIFO method of accounting for inventory will report:

What are the five steps to apply the core principles of revenue recognition?

Income tax expense consists of two components,the portion and the portion.

What are the four disclosures required by U.S.GAAP relating to income taxes?

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

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Recording municipal bond interest received in the general ledger will generate a(n)_________________ difference

Which of the following accounts would not be considered a reserve account?

Dividing a company's income tax expense by its book income before income taxes provides the company's ___________________________________.

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

Falcon Networks Falcon Networks is a leading semiconductor company with operations in 17 different countries.Information about the company's taxes appears below: -Based on the information provided by Falcon Networks how much cash did income taxes use during 2012?

Which of the following is not part of the balance sheet approach when computing income tax expense?

Overview of Financial Reporting,financial Statement Analysis,and Valuation

Asset and Liability Valuation and Income Recognition

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

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

___________________________________ is primarily a question of timing.

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

Regarding actuarial assumptions,firms must disclose in notes to the financial statements all of the following except:

Under U.S.GAAP,application of the LIFO and FIFO inventory methods result in differences in the balance sheet,income statement and cash flow statement.Compare and contrast the effect of the two methods on each financial statement and determine the advantages and disadvantages of each method.

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

When input prices are increasing,companies that use the LIFO method of accounting for inventory will report:

What are the five steps to apply the core principles of revenue recognition?

Income tax expense consists of two components,the ____________________ portion and the ____________________ portion.

What are the four disclosures required by U.S.GAAP relating to income taxes?

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

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Recording municipal bond interest received in the general ledger will generate a(n)_________________ difference

Which of the following accounts would not be considered a reserve account?

Dividing a company's income tax expense by its book income before income taxes provides the company's ___________________________________.

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

Falcon Networks Falcon Networks is a leading semiconductor company with operations in 17 different countries.Information about the company's taxes appears below: -Based on the information provided by Falcon Networks how much cash did income taxes use during 2012?

Which of the following is not part of the balance sheet approach when computing income tax expense?

Overview of Financial Reporting,financial Statement Analysis,and Valuation

Asset and Liability Valuation and Income Recognition

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

Income tax expense consists of two components,the portion and the portion.