Question 1

___________________________________ is primarily a question of timing.

Accepted Answer

The answer of ___________________________________ is primarily a question of timing....

Question 2

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

Accepted Answer

The answer of The statement of cash flows allows the...

Question 3

Playtime Corporation
Assume that Playtime Corp. has agreed to construct a new playground for Surrey County for $2,450,000. Construction of the new playground will begin on March 17, 2012 and is expected to be completed in August 2013. At the signing of the contract  Playtime Corp. estimates that it will cost $1,750,000 to build the playground.
At the end of 2012 Playtime provided the following information about the project:
  If Playtime uses the percentage of completion to recognize revenue on the long-term contract, how much gross margin should Playtime recognize in 2012?

Accepted Answer

A)  $389,200 
B)  $278,000 
C)  $556,000 
D)  $433,550 
A)  $389,200 
B)  $278,000 
C)  $556,000 
D)  $433,550

Question 4

A contractor would not use ________________________________________ method of income recognition when there is substantial uncertainty regarding the total costs it will incur in completing the project.

Accepted Answer

percentage

Question 5

All of the following are considered by analysts when assessing the quality of accounting except :

Accepted Answer

A)  Price variation and the speed at which inventory turns over 
B)  Any liquidation of FIFO inventory layers 
C)  Any physical deterioration or obsolescence of inventory 
D)  The inventory cost-flow assumption chosen by management 
A)  Price variation and the speed at which inventory turns over 
B)  Any liquidation of FIFO inventory layers 
C)  Any physical deterioration or obsolescence of inventory 
D)  The inventory cost-flow assumption chosen by management

Question 6

Deferred tax liabilities result in future tax ____________________ when temporary differences reverse.

Accepted Answer

The answer of Deferred tax liabilities result in future tax...

Question 7

Under the accrual method of accounting, when a firm has substantially completed its value-adding activities it should recognize ____________________.

Accepted Answer

The answer of Under the accrual method of accounting, when...

Question 8

What are the five steps to apply the core principles of revenue recognition?

Accepted Answer

1) Identify the contract with a customer

Question 9

Using the information provided by Falcon Networks , determine the foreign effective tax rate for 2012.

Accepted Answer

A)  33.52% 
B)  35.00% 
C)  42.25% 
D)  45.49% 
A)  33.52% 
B)  35.00% 
C)  42.25% 
D)  45.49%

Question 10

An inventory pricing procedure in which the current costs have a direct impact on the inventory is:

Accepted Answer

A)  FIFO 
B)  LIFO 
C)  Base stock 
D)  Weighted-average 
A)  FIFO 
B)  LIFO 
C)  Base stock 
D)  Weighted-average

Question 11

Which of the following statements best describes the difference between U.S. GAAP and IFRS with respect to revenue recognition?

Accepted Answer

A)  IFRS has a substantial amount of industry specific guidance for revenue recognition. 
B)  IFRS revenue recognition is not consistent with U.S. GAAP in principle. 
C)  There are subtle differences in the wording of U.S. GAAP as compared with IFRS. 
D)  IFRS has four criteria and U.S. GAAP has five conditions for revenue recognition. 
A)  IFRS has a substantial amount of industry specific guidance for revenue recognition. 
B)  IFRS revenue recognition is not consistent with U.S. GAAP in principle. 
C)  There are subtle differences in the wording of U.S. GAAP as compared with IFRS. 
D)  IFRS has four criteria and U.S. GAAP has five conditions for revenue recognition.

Question 12

What are the four disclosures required by U.S. GAAP relating to income taxes?

Accepted Answer

1) Components of the provision for incom

Question 13

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

Accepted Answer

The answer of A company that uses LIFO will find...

Question 14

All of the following examples represent complex revenue generation models except :

Accepted Answer

A)  Point-of-sale transactions 
B)  Uncertain revenue timing 
C)  Bundled service deliverables 
D)  Bundled deliverables in leases 
A)  Point-of-sale transactions 
B)  Uncertain revenue timing 
C)  Bundled service deliverables 
D)  Bundled deliverables in leases

Question 15

Pronto, Inc. is a major producer of printing equipment. Pronto uses a LIFO cost-flow assumption for inventories. The company's tax rate is 35%. Below is selected financial data for the company.
   
a. The excess of FIFO over LIFO inventories was $25 million on December 31, 2013, $28.5 million on December 31, 2012 and $22 million on December 31, 2011. Compute the cost of goods sold for Pronto, Inc. for years 2013 and 2012 assuming that it had used a FIFO assumption.
b. Compute the inventory turnover ratio for Pronto, Inc. for years 2013 and 2012 using a LIFO cost-flow assumption.
c. Compute the inventory turnover ratio for Pronto, Inc. for years 2013 and 2012 using a FIFO cost-flow assumption.
d. Compute the rate of return on assets for years 2013 and 2012 based on the reported amounts. Disaggregate ROA into profit margin and asset turnover components.
e. Compute the rate of return on assets for years 2013 and 2012 assuming that Pronto, Inc. had used the FIFO method of accounting for inventories. Disaggregate ROA into profit margin and asset turnover components.

Accepted Answer

Required:
a. The excess of FIFO over LIF

Question 16

The process of allocating the historical cost of certain assets to the periods of their use in a reasonably systematic manner is referred to as ____________________.

Accepted Answer

The answer of The process of allocating the historical cost...

Question 17

Which of the following is not part of the balance sheet approach when computing income tax expense?

Accepted Answer

A)  Identifying at each balance sheet date all differences between the book basis of assets, liabilities, and tax loss carryforwards 
B)  Eliminating permanent differences between book and tax basis. 
C)  Eliminating deferred tax assets. 
D)  Assessing the likelihood that the firm will realize the benefits of deferred tax assets in the future. 
A)  Identifying at each balance sheet date all differences between the book basis of assets, liabilities, and tax loss carryforwards 
B)  Eliminating permanent differences between book and tax basis. 
C)  Eliminating deferred tax assets. 
D)  Assessing the likelihood that the firm will realize the benefits of deferred tax assets in the future.

Question 18

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

Accepted Answer

A)  accounts receivable turnover 
B)  the ratio of bad debt expense to sales 
C)  the ratio of sales returns to sales 
D)  the ratio of cost of sales to sales 
A)  accounts receivable turnover 
B)  the ratio of bad debt expense to sales 
C)  the ratio of sales returns to sales 
D)  the ratio of cost of sales to sales

Question 19

A LIFO liquidation during periods when prices are increasing results in a company:

Accepted Answer

A)  recording a large inventory write down. 
B)  recording higher earnings than it would have if it had used FIFO. 
C)  recording lower earnings than it would have if it had used FIFO. 
D)  having operational problems, but no financial statement effects. 
A)  recording a large inventory write down. 
B)  recording higher earnings than it would have if it had used FIFO. 
C)  recording lower earnings than it would have if it had used FIFO. 
D)  having operational problems, but no financial statement effects.

Question 20

At the end of 2012 Playtime provided the following information about the project:
  What percentage is the playground complete?

Accepted Answer

A)  62.5% 
B)  66.7% 
C)  55.6% 
D)  50.0% 
A)  62.5% 
B)  66.7% 
C)  55.6% 
D)  50.0%

___________________________________ is primarily a question of timing.

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

A contractor would not use ________________________________________ method of income recognition when there is substantial uncertainty regarding the total costs it will incur in completing the project.

All of the following are considered by analysts when assessing the quality of accounting except :

Deferred tax liabilities result in future tax ____________________ when temporary differences reverse.

Under the accrual method of accounting, when a firm has substantially completed its value-adding activities it should recognize ____________________.

What are the five steps to apply the core principles of revenue recognition?

Using the information provided by Falcon Networks , determine the foreign effective tax rate for 2012.

An inventory pricing procedure in which the current costs have a direct impact on the inventory is:

Which of the following statements best describes the difference between U.S. GAAP and IFRS with respect to revenue recognition?

What are the four disclosures required by U.S. GAAP relating to income taxes?

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

All of the following examples represent complex revenue generation models except :

The process of allocating the historical cost of certain assets to the periods of their use in a reasonably systematic manner is referred to as ____________________.

Which of the following is not part of the balance sheet approach when computing income tax expense?

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

A LIFO liquidation during periods when prices are increasing results in a company:

At the end of 2012 Playtime provided the following information about the project: What percentage is the playground complete?

Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

Exam 9: Accounting Quality

___________________________________ is primarily a question of timing.

The statement of cash flows allows the accountant to agree the net cash provided to the _________________________ general ledger

A contractor would not use ________________________________________ method of income recognition when there is substantial uncertainty regarding the total costs it will incur in completing the project.

All of the following are considered by analysts when assessing the quality of accounting except :

Deferred tax liabilities result in future tax ____________________ when temporary differences reverse.

Under the accrual method of accounting, when a firm has substantially completed its value-adding activities it should recognize ____________________.

What are the five steps to apply the core principles of revenue recognition?

Using the information provided by Falcon Networks , determine the foreign effective tax rate for 2012.

An inventory pricing procedure in which the current costs have a direct impact on the inventory is:

Which of the following statements best describes the difference between U.S. GAAP and IFRS with respect to revenue recognition?

What are the four disclosures required by U.S. GAAP relating to income taxes?

A company that uses LIFO will find that its ______________________________ account will be somewhat out of date.

All of the following examples represent complex revenue generation models except :

The process of allocating the historical cost of certain assets to the periods of their use in a reasonably systematic manner is referred to as ____________________.

Which of the following is not part of the balance sheet approach when computing income tax expense?

Which of the following will most likely help identify an increasing proportion of uncollectible sales?

A LIFO liquidation during periods when prices are increasing results in a company:

At the end of 2012 Playtime provided the following information about the project: What percentage is the playground complete?

Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Asset and Liability Valuation and Income Recognition

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters