CPA 3 What is net cash provided by operating activities under the indirect method?
CPA 4 Which of the following does not represent a cash flow relating to operating activities?
a. Dividends paid to stockholders.
CPA 5 Which of the following wo
21-2) The statement of cash flows provides a list of all the cash inflows and cash outflows during
the reporting period. To make the list more informative, the cash flows are classified according to
the nature of the activities that create the cash flows.
Q 16-10 How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?
A deferred tax asset or deferred tax liability are reported as either current or non current and are not
reported individually but combined into two s
CPA 3 What amount of installment accounts receivable should Dolce report in its December 31, 2014,
CPA 4 Which of the following statements regarding the percentage-of-completion method
CPA 1 What type of lease is this
CPA 4 What is the amount of profit on the sale and interest revenue that Howe should record for the
year ended December 31, 2013?
CPA 5 What amount sho
17-20 A pension plan is underfunded when the employees obligation (PBO) exceeds the resources
available to satisfy that obligation (plan assets) and overfunded when the opposite is the case. How is
this funded status reported on the balance sheet if plan
Q20-13 If merchandise inventory is understated at the end of 2012, and the error is not
discovered, how will net income be affected in 2013?
2013 cost of goods would be understated, causing 2013 net income to be overstated. All by the
same amount it was u
Q 16-4 The benefit of future deductible amounts can be achieved only if future income is sufficient to
take advantage of the deferred deductions. For that reason, not all deferred tax assets will ultimately be
realized. How is this possibility reflected i
Q 20-1 For accounting purposes, we classify accounting changes into three categories. What are
they? Provide a short description of each.
Change in accounting principle- Changing from GAAP to another
Change in accounting estimate- Revision of an estimate
17-3 Lamont Corporation has a pension plan in which the corporation makes all contributions and
employees receive benefits at retirement based on the balance in their accumulated pension fund. What
type of pension plan does Lamont have?
This is a non-cont
Q 5-10 Distinguish between the percentage-of-completion and completed contract methods of
accounting for long-term contracts with respect to income recognition. Under what circumstances
should a company use the completed contract method?
Q 15-1 The basic concept of substance over form influence lease accounting. Explain.
A lease is accounted for as either a rental agreement or a purchase/sale accompanied by debt financing
depending on the substance of the leasing agreement.
Q 15-8 Can the
Q 5-1 What are the two general criteria that must be satisfied before a company can recognize revenue?
1. The earnings process is judged to be complete or virtually complete
2. There is reasonable certainty as to the collectability of the asset to be rece