Exam 3: Balance Sheet

Which of the following is a current liability?

The analyst must assume that securities classified as marketable securities are readily marketable.

Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

Which of the following accounts would not be classified as an intangible?

When the bond market interest rate is 6% and the bond contractual interest rate is 8%, the bond will sell at a premium.

All intangibles are amortized over their useful lives or their legal lives, whichever is shorter.

Deferred taxes are caused by using different accounting methods for tax and financial reporting purposes.

The stockholders' equity section of the balance sheet includes redeemable preferred stock.

If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as:

Using IFRS, usually noncurrent assets are presented first, followed by current assets.

The principal financial statements are the balance sheet, income statement, and statement of cash flows.

Which of the following is not a current asset?

Company A owns shares of Company B and Company C.The statements of Company B are consolidated with those of Company A.The statements of Company C are not consolidated.Company A reports "Minority Interest" on its balance sheet.This account represents:

The deferred compensation element of an equity-based deferred compensation arrangement is the amount of compensation cost deferred and amortized (expensed) to future periods as the services are provided.

Corporations do not use a standard title for owners' equity.

When preferred stock has a preference as to dividends, the current year's preferred dividend must be paid before a dividend can be paid to common stockholders.

A quasi-reorganization is an accounting procedure equivalent to an accounting fresh start.

Warranty obligations are estimated in order to recognize the obligation at the balance sheet date and to charge the expense to the period of the sale.

The purpose of a balance sheet is to show the financial condition of an accounting entity for a period of time.

At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000.For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000.At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000.At the end of the year, Execon Corporation had total liabilities of: