Practice final BBUS3211_SW2_PE_10JUL12


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Unformatted text preview: method to unit of production would be classified as: a. Change in principle b. Change in estimate c. Correction of error d. Non‐of the above TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 12. 5 of 13 Which of the following creates a deferred tax liability? a. An unrealized loss from recording inventory at lower of cost or market. b. Accelerated depreciation in the tax return. c. Estimated warranty expense. d. Subscriptions collected in advance. 13. Which of the following transactions decreases retained earnings? a. A property dividend. b. A stock dividend. c. A cash dividend. d. All of the above are correct. 14. After issuing its financial statements, a company discovered that its beginning inventory was overstated by $100,000. Its tax rate is 30%. As a result of this error, net income was: a. Understated by $70,000. b. Overstated by $70,000. c. Understated by $30,000. d. Overstated by $30,000. 15. Pension data for Goldman Company included the following for the current calendar year: Service cost ABO, January 1 750,000 Plan Asset, January 1 800,000 Amorti...
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