Question 1

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 2

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

Accepted Answer

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

Question 3

____________________ 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 4

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 5

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 6

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 7

Under the completed contract method:

Accepted Answer

A)  revenue and cost are recognized during the production cycle,but gross profit recognition is deferred until the contract is completed. 
B)  revenue,cost,and gross profit are recognized during the production cycle. 
C)  revenue,cost,and gross profit are recognized at the time the contract is completed. 
D)  None of these are correct. 
A)  revenue and cost are recognized during the production cycle,but gross profit recognition is deferred until the contract is completed. 
B)  revenue,cost,and gross profit are recognized during the production cycle. 
C)  revenue,cost,and gross profit are recognized at the time the contract is completed. 
D)  None of these are correct.

Question 8

Accountants use reserve accounts for various reasons,for each of the scenarios below describe a specific account example that matches the scenario.

Accepted Answer

Some possible answers from Chapter 8 of

Question 9

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 a...

Question 10

Playtime Corporation
Assume that Playtime Corp.has agreed to construct a new playground for Surrey County for $2,450,000.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 Playtime Corp.estimates that it will cost $1,750,000 to build the playground.
-At the end of 2012 Playtime provided the following information about the project:   What percentage is the playground complete?

Accepted Answer

A)  62.5% 
B)  66.7% 
C)  55.6% 
D)  50.0% 
A)  62.5% 
B)  66.7% 
C)  55.6% 
D)  50.0%

Question 11

Although LIFO generally provides higher quality earnings measures,FIFO generally provides higher _____________________________________________ measures.

Accepted Answer

quality fi

Question 12

Differences between income before taxes and taxable income are either ____________________ or ____________________.

Accepted Answer

The answer of Differences between income before taxes and taxable...

Question 13

Analysts concerns with postretirement benefits include all of the following except:

Accepted Answer

A)  Should the underfunded postretirement benefit obligation be added to liabilities in assessing risk? 
B)  How reasonable are the firms' assumptions regarding health care cost increases? 
C)  Is the postretirement benefit fund adequately paying benefits? 
D)  Is the postretirement benefit fund generating returns consistent with the expected rate of return? 
A)  Should the underfunded postretirement benefit obligation be added to liabilities in assessing risk? 
B)  How reasonable are the firms' assumptions regarding health care cost increases? 
C)  Is the postretirement benefit fund adequately paying benefits? 
D)  Is the postretirement benefit fund generating returns consistent with the expected rate of return?

Question 14

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

Accepted Answer

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

Question 15

Bower Construction Comp.has consistently used the percentage-of- 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):

Accepted Answer

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

Question 16

The difference between the economic resources received from customers and the economic resources paid to suppliers,employees and other providers of goods and services is called ____________________.

Accepted Answer

The answer of The difference between the economic resources received...

Question 17

Playtime Corporation
Assume that Playtime Corp.has agreed to construct a new playground for Surrey County for $2,450,000.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 Playtime Corp.estimates that it will cost $1,750,000 to build the playground.
-At the end of 2012 Playtime provided the following information about the project:   If Playtime uses the percentage of to recognize revenue on the long-term contract,how much gross margin should Playtime recognize in 2012?

Accepted Answer

A)  $389,200 
B)  $278,000 
C)  $556,000 
D)  $433,550 
A)  $389,200 
B)  $278,000 
C)  $556,000 
D)  $433,550

Question 18

All of the following are true regarding accrual accounting except:

Accepted Answer

A)  Accrual basis measures operating success by the extent to which accomplishments exceed efforts. 
B)  Accrual basis measures operating success by the extent to which revenues exceed expenses. 
C)  Accrual basis reports operating activities in terms of their success in generating value. 
D)  Accrual basis for the recognition of expenses is not required under IFRS. 
A)  Accrual basis measures operating success by the extent to which accomplishments exceed efforts. 
B)  Accrual basis measures operating success by the extent to which revenues exceed expenses. 
C)  Accrual basis reports operating activities in terms of their success in generating value. 
D)  Accrual basis for the recognition of expenses is not required under IFRS.

Question 19

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 20

Which of the following calculations is used to determine the amount of the liability reported on the balance sheet for underfunding?

Accepted Answer

A)  Plan assets less projected benefit obligation. 
B)  Projected benefit obligation less plan assets. 
C)  Plan assets less accumulated benefit obligation. 
D)  Accumulated benefit obligation less plan assets. 
A)  Plan assets less projected benefit obligation. 
B)  Projected benefit obligation less plan assets. 
C)  Plan assets less accumulated benefit obligation. 
D)  Accumulated benefit obligation less plan assets.

Using the information provided by Falcon Networks,determine the federal effective tax rate for 2012.

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

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

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?

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

Under the completed contract method:

Accountants use reserve accounts for various reasons,for each of the scenarios below describe a specific account example that matches the scenario.

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

Although LIFO generally provides higher quality earnings measures,FIFO generally provides higher _____________________________________________ measures.

Differences between income before taxes and taxable income are either or .

Analysts concerns with postretirement benefits include all of the following except:

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

The difference between the economic resources received from customers and the economic resources paid to suppliers,employees and other providers of goods and services is called ____________________.

All of the following are true regarding accrual accounting except:

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

Which of the following calculations is used to determine the amount of the liability reported on the balance sheet for underfunding?

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

Using the information provided by Falcon Networks,determine the federal effective tax rate for 2012.

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

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

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?

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

Under the completed contract method:

Accountants use reserve accounts for various reasons,for each of the scenarios below describe a specific account example that matches the scenario.

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

Although LIFO generally provides higher quality earnings measures,FIFO generally provides higher _____________________________________________ measures.

Differences between income before taxes and taxable income are either ____________________ or ____________________.

Analysts concerns with postretirement benefits include all of the following except:

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

The difference between the economic resources received from customers and the economic resources paid to suppliers,employees and other providers of goods and services is called ____________________.

All of the following are true regarding accrual accounting except:

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

Which of the following calculations is used to determine the amount of the liability reported on the balance sheet for underfunding?

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

Differences between income before taxes and taxable income are either or .