For government-wide financial statements, what account is credited when a piece of equipment is leased on
a capital lease?
A. Equipment - Capital Lease
B. Encumbrances - Long Term
C. Encumbrances - Lease Obligations
D. Capital Lease Obligation
Which standard issued by the Governmental Accounting Standards Board in 1999 requires two distinct sets
of financial statements for state and local governments?
A. GASB Statement No. 32.
B. GASB Statement No. 33.
C. GASB Statement No. 34.
Question 1 Securities issued in private placements to institutional investors such as insurance companies and pension funds are generally exempt from the registration requirements of the SEC. Correct Answer: True Question 2 The major objective of the SEC
1 .The financial balances for the Atwood Company and the Franz Company as of December 31, 2000, are presented below. Also included are the fair market values for Franz Company's net assets.
Note: Parenthesis indicate a credit balance In the following situ
For business combinations involving less than 100 percent ownership, the acquirer recognizes and
measures all of the following at the acquisition date except:
A. identifiable assets acquired, at fair value.
B. liabilities assumed, at book value.
Which one of the following accounts would not appear in the consolidated financial statements at the end
of the first fiscal period of the combination?
C. Investment in Subsidiary.
D. Common Stock.
E. Additional Paid-In C
On January 1, 2011, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The
bonds had a carrying value of $421,620, and Riley paid $401,937 for them. How should you account for
the difference between the carrying value an
Reciprocal transfers where both parties give and receive something of value are
A. contributed services.
B. unconditional promises to give.
C. endowment transactions.
D. exchange transactions.
E. required contributions.
Which of the following t
In the United States, foreign companies filing annual reports with the SEC that are not prepared in
accordance with U.S. GAAP must:
A. present financial statements that comply with international GAAP.
B. conform with U.S. GAAP or present a reconci
Question 1 10 out of 10 points Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment. Teal reported net income of $110,000 for 2008 and paid dividends of $60,000 on October 1, 2008. How
Which one of the following is not a division of the SEC?
A. The Division of Corporation Finance.
B. The Division of Investment Management.
C. The Division of Compliance Information.
D. The Division of Enforcement.
E. The Division of Trading and Ma
Question 1 Buckette Co. owned 60% of Shuvelle Corp. and 40% of Tayle Corp., and Shuvelle owned 35% of Tayle. What is this pattern of ownership called? Correct Answer: A connecting affiliation. Feedback: Connecting Affiliation - Mutual Ownership - Father s
Buckette Co. owned 60% of Shuvelle Corp. and 40% of Tayle Corp., and Shuvelle owned 35% of Tayle.
When Buckette prepared consolidated financial statements, it should include
A. Shuvelle but not Tayle.
B. Tayle but not Shuvelle.
C. either Shuvelle o
At the date of an acquisition which is not a bargain purchase, the acquisition method
A. consolidates the subsidiary's assets at fair value and the liabilities at book value.
B. consolidates all subsidiary assets and liabilities at book value.
Q1. Gunther Co. established a subsidiary in Mexico on January 1, 2007. The subsidiary engaged in the following transactions during 2007: What amount of foreign exchange gain or loss would have been recognized on Gunther's consolidated income statement for
Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the
partnership. The accountant for the partnership believed that the dissolved partnership and the newly
formed partnership were two separate entities. W
On November 8, 2011, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost
$61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on
the sale of the land realized?
Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated
information for each operating segment, except:
A. Revenues from external customers.
B. Discontinued operations.
C. Cost of goods sold.
Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to
account for this investment. Trace reported net income of $110,000 for 2011 and paid dividends of $60,000
on October 1, 2011. How much income should Gaw
A Chapter 7 bankruptcy is a(n)
A. involuntary reorganization.
B. bankruptcy forced by a company's creditors.
D. bankruptcy in which all creditors receive payment in full.
E. voluntary reorganization.
Where should a company under
When a person dies without leaving a valid will, how is the distribution of his or her property determined?
A. In accordance with federal inheritance laws.
B. In accordance with generally accepted accounting principles.
C. In accordance with a pla
Which of the following are not authoritative pronouncements of
1) International Financial Reporting Standards issued by the IASB
2) International Accounting Standards issued by the IASC and adopted
In accounting, the term translation refers to
A. the calculation of gains or losses from hedging transactions.
B. the calculation of exchange rate gains or losses on individual transactions in foreign currencies.
C. the procedure required to ident
Question 1 Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except: a. Revenues from external customers. b. Discontinued operations. c. Cost of goods sold.
Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2011. Pigskin
received payment of 35,000 British pounds on May 8, 2011. The exchange rate was 1 = $1.54 on April 8
and 1 = 1.43 on May 8. What amount of fore
Chapter 5-Job-Order Costing
1. Manufacturing and service firms producing unique products or services require job-order accounting
systems. True False
2. The key feature of job-order costing is that the cost of one job differs from that of anoth
Chapter 7-Activity-Based Costing and Management
1. Unit-level activities are performed each time a unit is produced. True False
2. Factors that measure the consumption of activities by products and other cost objects are value-added
Which one of the following accounts would not appear on the consolidated financial statements at the end of the first fiscal period of the combination? Goodwill. Equipment. Investment in Subsidiary. Common Stock. Additional Paid-In Capital.