F08_136A_MT1

F08_136A_MT1 - Anderson Econ 136A Exam#1 v 1 Name Complete...

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October 22, 2008 Anderson Econ 136A Exam #1 v. 1 Name _________________________ Complete Multiple Choice (#1-25) on green scantron and the remaining problems in you blue book. 1. Which of the following items is not taxed before inclusion in retained earnings of a company: a. Discontinued operations. b. All of these items are taxed. c. Extraordinary items. d. Income from continuing operations. 2. If you pay 12 months of an insurance policy on April 1 for $120,000 and record the following journal entry: Insurance expense $120,000 Cash $120,000 The journal entry required at the end of the year would: a. Debit prepaid insurance for 30,000 and credit insurance expense for the same amount. b. Credit insurance expense $10,000 and debit prepaid insurance $10,000. c. Have no impact on insurance expense, but increase prepaid insurance by $120,000. d. Debit prepaid insurance for $100,000 and credit insurance expense for the same amount. 3. A common set of accounting standards and procedures are called a. generally accepted accounting principles. b. statements of financial accounting concepts. c. objectives of financial reporting. d. financial accounting standards. 4. Which of the following impacts comprehensive income? UNREALIZED GAIN ON UNREALIZED GAIN ON TRADING INVESTMENT AVAILABLE FOR SALE INVESTMENT a. No Yes b. No No c. Yes No d. Yes Yes
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5. The definition of an asset requires there to be a transaction. Which of the following items have probable future economic value but would not appear as assets on a GAAP balance sheet: a. internally generated goodwill b. all of these would be excluded from assets. c. internally generated branding d. human resources 6. Management discovers that a large account receivable is no longer probable of collection and needs to increase the allowance for doubtful accounts as a result. There was no indication that collection of this balance would be a problem as of the end of the prior year. a. None of the above. b. The above facts represent a change in accounting estimate and should be presented on a current and forward basis. c. The above facts represent a change in accounting estimate and should be presented on a current and forward basis, net of tax, on the income statement. d. The above facts represent a change in accounting estimate and should be presented as an adjustment to retained earnings, on a net of tax basis. 7. Which of the following tables would show the largest value for an interest rate of 5% for six periods? a. Present value of an ordinary annuity of 1 b. Future value of an ordinary annuity of 1 c. Future value of 1 d. Present value of 1 8. Companies that are listed on a stock exchange are required to submit their financial statements to the a. APB.
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This note was uploaded on 05/18/2011 for the course ECON 136A taught by Professor Anderson during the Spring '08 term at UCSB.

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F08_136A_MT1 - Anderson Econ 136A Exam#1 v 1 Name Complete...

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