Acct 312 ch 16, 17, 19spr06

Acct 312 ch 16 17, - Accounting 312 Test 19 Spring 2006 A Smith Name Multiple Choice Write the letter of the best answer 3 points each 1 Each off

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Test: Chapters 16, 17, 19 Spring 2006 A. Smith Name: ___________________________ Multiple Choice. Write the letter of the best answer. 3 points each. ____ 1. Each off the following creates a difference between pre-tax financial income and taxable income. Which one ordinarily creates a deferred tax asset? a) Cash received in advance before revenue is earned and recognized. b) Highly accelerated depreciation allowed for taxes but not for financial reporting. c) Sales revenue recognized in the current period on the income statement but not reported on the tax return until cash is collected in later periods. d) Interest on municipal bonds. ____ 2. Each off the following creates a difference between pre-tax financial income and taxable income. Which of the following items creates a permanent difference? a) Death benefits received from a corporate officer’s life insurance policy. b) Interest on municipal bonds. c) Estimated warranty expense. d) Both “A” and “B” create permanent differences. ____ 3.Which of the following statements typifies defined contribution plans? a) Investment risk is borne by the corporation sponsoring the plan. b) The plans are more complex than defined benefit plans. c) Present value factors are used to determine the annual contributions to the plan. d) The employer's obligation is satisfied by making the periodic contribution to the plan. ____ 4. Which of the following describes defined benefit pension plans? a) They raise few accounting issues for employers. b) Retirement benefits depend on how much money has accumulated in an individual's account. c)
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This note was uploaded on 03/14/2010 for the course ACC 311 taught by Professor Smith during the Spring '10 term at Malone University.

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Acct 312 ch 16 17, - Accounting 312 Test 19 Spring 2006 A Smith Name Multiple Choice Write the letter of the best answer 3 points each 1 Each off

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