Chapter C9 Partnership Formation and Operation Discussion Problems
C9-1 Advantages of a partnership for Yong and Li include: 1. The partnership itself is not subject to tax, thereby eliminating the problem of double taxation that exists for C corporations
Chapter 14 & Part of Chapter 16
Reasons for issuing long-term liabilities.
Accounting for bonds.
Amortization of discounts and premiums under
the effective interest method.
Extinguishment of liabilitie
Dilutive Securities and Earnings Per
Accounting for stock based compensation.
Understanding Earnings Per Share (EPS):
Employee or Other Stock Plans
What is a stock option anyway?
Current Liabilities and Contingencies
Define liabilities and current liabilities and
explain their characteristics
Account for various current liabilities
Based on this definition, if you are an
Accounting for Income Taxes
the conceptual basis for deferred tax accounting
permanent and temporary differences.
the difference between interperiod and intra
period tax allocation.
Recording and reporting deferr
Corporate form of organization.
Rights and terms that apply to capital stock.
Accounting for the issuance of capital stock.
Characteristics of preferred stock.
Components of contributed cap
Changes in Accounting and Errors
Identify the types of accounting changes.
Explain the methods of disclosing an accounting
Account for a change in accounting principle
Account for a change in estimate.
Account for a ch
Understand the full disclosure principle
Segment of business reporting
Full disclosure principle
reporting of any financial facts or information
significant enough to influence t
Accounting for Pensions and
The characteristics of pension plans.
Conceptual issues regarding pension plans.
Accounting for defined benefit plans, including computing
pension expense and re
Time Value of Money
the basis for present value techniques
conceptual issues on using of present value in financial
reporting simple interest and compound interest.
future value of a single sum.
present value of a s
Required Homework Solutions
1. The basic rights of each stockholder (unless otherwise restricted) are to share
proportionately: (1) in profits, (2) in management (the right to vote for directors), (3) in
corporate assets upon liquidat
Chapter 14 & Part 16
Solutions Required Problems
5. A discount on bonds payable results when investors demand a rate of interest higher than
the rate stated on the bonds. The investors are not satisfied with the nominal interest rate
because they can earn
Required Problems Solutions
Companies are required to use the fair value method to recognize compensation cost. For most
stock option plans compensation cost is measured at the grant date and allocated to expense over the
Solutions Required Problems
13. Compensated absences are employee absences such as vacation, illness, and holidays for
which it is expected that employees will be paid.
14. A liability should be accrued for the cost of compensated abs
Statement of Cash Flows
Define operating, investing, and financing
Explain the direct and indirect methods for
reporting operating cash flows.
Convert from indirect to direct method cash
Prepare a simple state