CHAPTER 19
ACCOUNTING FOR INCOME TAXES
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Description
Taxable income. Use of pretax financial income. Taxable amoun
CHAPTER 9
INVENTORIES: ADDITIONAL VALUATION ISSUES
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Answer
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Description
When to use lower-of-cost-or-market. Lower-of-cost
CHAPTER 13
CURRENT LIABILITIES AND CONTINGENCIES
TRUE-FALSEConceptual
Answer
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Description
Zero-interest-bearing note payable. Dividends in ar
CHAPTER 16
DILUTIVE SECURITIES AND EARNINGS PER SHARE
TRUE-FALSEDilutive SecuritiesConceptual
Answer
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Accounting for convertibl
CHAPTER 17
INVESTMENTS
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Description
Examples of debt securities. Definition of trading securities. Available-for-
CHAPTER 15
STOCKHOLDERS EQUITY
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Answer
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Description
State a corporation incorporates in. Definition of preemptive right.
CHAPTER 20
ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS
TRUE-FALSEConceptual
Answer
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Description
Funded pension plan. Qualified pensio
CHAPTER 21
ACCOUNTING FOR LEASES
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Description
Benefits of leasing. Accounting for long-term leases. Classifying l
CHAPTER 18
REVENUE RECOGNITION
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Answer
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Description
Recognition of revenue. Realization of revenue. Delayed recognition o
CHAPTER 23
STATEMENT OF CASH FLOWS
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Description
Primary purpose of the statement of cash flows. Information provi
CHAPTER 22
ACCOUNTING CHANGES AND ERROR ANALYSIS
TRUE-FALSEConceptual
Answer
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Description
Change in accounting estimate. Errors in financial
CHAPTER 4
INCOME STATEMENT AND RELATED INFORMATION
IFRS questions are available at the end of this chapter.
TRUE-FALSEConceptual
Answer
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Description
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CHAPTER 14
LONG-TERM LIABILITIES
TRUE-FALSEConceptual
Answer
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No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. *19. *20.
Description
Bond interest payments. Debenture bonds. Definition of serial bon
CHAPTER 11
DEPRECIATION, IMPAIRMENTS, AND DEPLETION
TRUE-FALSEConceptual
Answer
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Description
Nature of depreciation. Nature of depreciation. D
Chapter 04 BRIEF EXERCISE 4-1 Tim Allen Co. Income Statement For the Year 2007 Revenues Sales $540,000
Expenses Cost of goods sold. Wage expense. Other operating expenses. Income tax expense. Total expenses. $320,000 120,000 10,000 25,000 475,000
Net inco
Chapter 05 EXERCISE 5-5 Uhura Company Balance Sheet December 31, 2007 Assets Current assets Cash. Trading securities-at fair value. Accounts receivable. Less: Allowance for doubtful accounts. Inventories, at lower of average cost or market. Prepaid expens
CHAPTER 7
Cash and Receivables
*PROBLEM 7-13 (a) Jose Orozco Co. Bank Reconciliation June 30, 2007 $4,150.00 2,890.00 (2,136.05) $4,903.95 $3,969.85 $ 30.00 523.80 936.00 453.20 72.00 30.50
Balance per bank, June 30 Add: Deposits in transit Deduct: Outsta
EXERCISE 7-18 (1015 minutes) 1. 7/1/07 Notes Receivable. 1,101,460.00 Discount on Notes Receivable. . Land. Gain on Sale of Land. ($700,000 $590,000)
401,460.00 590,000.00 110,000.00
Computation of the discount $1,101,460 Face value of note .63552 Present
EXERCISE 9-2 (1015 minutes) Net Realizable Value Less Normal Profit (Floor) $70* 60 45 45 60 40
Item D E F G H I
Net Realizable Value (Ceiling) $90* 80 65 65 80 60
Replacement Cost $120 72 70 30 70 30
Designated Market $90 72 65 45 70 40
Cost $75 80 80 80
CHAPTER 6
ACCOUNTING AND THE TIME VALUE OF MONEY
TRUE-FALSEConceptual
Answer
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No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Description
Time value of money. Definition of interest expense
CHAPTER 7
CASH AND RECEIVABLES
TRUE-FALSEConceptual
Answer
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Description
Items considered cash. Items considered cash. Items considered cash.
CHAPTER 8
VALUATION OF INVENTORIES: A COST-BASIS APPROACH
TRUE-FALSEConceptual
Answer
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No.
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Description
Work-in-process inventory. Merchandising a
CHAPTER 12
INTANGIBLE ASSETS
TRUE-FALSEConceptual
Answer
F F F F T T T F T T T F T T F F T F T F
No.
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Description
Characteristics of intangible assets. Internally created intangibles. R
CHAPTER 10
ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND EQUIPMENT
TRUE-FALSEConceptual
Answer
F T F T F T F F F T T T T F F T T F F T
No.
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Description
Nature of property, plant, a
