Question 1

Although LIFO generally provides higher quality earnings measures, FIFO generally provides higher _____________________________________________ measures.

Accepted Answer

quality fi

Question 2

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

Accepted Answer

The answer of ____________________ differences result from including revenues and...

Question 3

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

Accepted Answer

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

Question 4

All of the following are events that can change the projected benefit obligation (PBO) during a period except :

Accepted Answer

A)  The payment of retirement benefits. 
B)  Amendments to the pension plan agreement 
C)  The interest accumulated on the liability. 
D)  All of these can change the PBO. 
A)  The payment of retirement benefits. 
B)  Amendments to the pension plan agreement 
C)  The interest accumulated on the liability. 
D)  All of these can change the PBO.

Question 5

The difference between the economic resources received from customers and the economic resources paid to suppliers, employees and other providers of goods and services is called ____________________.

Accepted Answer

The answer of The difference between the economic resources received...

Question 6

All of the following are true regarding accrual accounting except :

Accepted Answer

A)  Accrual basis measures operating success by the extent to which accomplishments exceed efforts. 
B)  Accrual basis measures operating success by the extent to which revenues exceed expenses. 
C)  Accrual basis reports operating activities in terms of their success in generating value. 
D)  Accrual basis for the recognition of expenses is not required under IFRS. 
A)  Accrual basis measures operating success by the extent to which accomplishments exceed efforts. 
B)  Accrual basis measures operating success by the extent to which revenues exceed expenses. 
C)  Accrual basis reports operating activities in terms of their success in generating value. 
D)  Accrual basis for the recognition of expenses is not required under IFRS.

Question 7

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

Accepted Answer

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

Question 8

Which of the following accounts would not be considered a reserve account?

Accepted Answer

A)  Allowance for Doubtful Accounts 
B)  Estimated Warranty Liability 
C)  Prepaid Expense 
D)  Accumulated Depreciation 
A)  Allowance for Doubtful Accounts 
B)  Estimated Warranty Liability 
C)  Prepaid Expense 
D)  Accumulated Depreciation

Question 9

Presented below is pension information related to Roberts Corp. for the year 2012:
  The amount of pension expense to be reported for 2012 is:

Accepted Answer

A)  $46,000 
B)  $48,000 
C)  $54,000 
D)  $40,000 
A)  $46,000 
B)  $48,000 
C)  $54,000 
D)  $40,000

Question 10

To calculate a company's average tax rate an analyst would:

Accepted Answer

A)  Divide income tax payable by income before taxes 
B)  Divide income tax expense by income before taxes 
C)  Multiply the statutory income tax rate by income before tax 
D)  Average a firm's Federal, State, Local and Foreign tax rates. 
A)  Divide income tax payable by income before taxes 
B)  Divide income tax expense by income before taxes 
C)  Multiply the statutory income tax rate by income before tax 
D)  Average a firm's Federal, State, Local and Foreign tax rates.

Question 11

Income tax expense consists of two components, the ____________________ portion and the ____________________ portion.

Accepted Answer

The answer of Income tax expense consists of two components,...

Question 12

Please answer the following questions about defined benefit pension plans:
1. Companies with defined benefit pension plans must recognize pension expense each period. What are the five components of pension expense? Briefly describe each component.
2. How does each component of pension expense effect pension expense during the period (increase, decrease, or uncertain)?
3. What is the difference between the accumulated pension obligation and the projected pension obligation?
4. What determines whether a pension plan is underfunded or overfunded?

Accepted Answer

1. The components of pension expense are

Question 13

U.S. GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

Accepted Answer

in the not

Question 14

All of the following are most likely to change the FMV of pension plan assets during a given period except :

Accepted Answer

A)  Employer cash payments are made to the plan trustee. 
B)  Changes in Internal Revenue Service regulations for future tax deductible amounts of contributions. 
C)  Actual returns on invested plan assets. 
D)  Retirement benefits paid. 
A)  Employer cash payments are made to the plan trustee. 
B)  Changes in Internal Revenue Service regulations for future tax deductible amounts of contributions. 
C)  Actual returns on invested plan assets. 
D)  Retirement benefits paid.

Question 15

Regarding actuarial assumptions, firms must disclose in notes to the financial statements all of the following except :

Accepted Answer

A)  the discount rate used to compute the pension benefit obligation. 
B)  the expected rate of return on pension investments. 
C)  estimates of the number of retirees over the future 10 years. 
D)  the rate of compensation increase. 
A)  the discount rate used to compute the pension benefit obligation. 
B)  the expected rate of return on pension investments. 
C)  estimates of the number of retirees over the future 10 years. 
D)  the rate of compensation increase.

Question 16

A minimum liability for pension expense is reported when:

Accepted Answer

A)  the projected benefit obligation exceeds the fair value of pension plan assets. 
B)  the pension expense reported for the period is greater than the funding amount for the same period. 
C)  the accumulated benefit obligation exceeds the fair value of pension plan assets. 
D)  vested benefits exceed the fair value of pension plan assets. 
A)  the projected benefit obligation exceeds the fair value of pension plan assets. 
B)  the pension expense reported for the period is greater than the funding amount for the same period. 
C)  the accumulated benefit obligation exceeds the fair value of pension plan assets. 
D)  vested benefits exceed the fair value of pension plan assets.

Question 17

Upton Company has consistently used the percentage-of-completion method of recognizing income. In 2010, Upton started on an $18,000,000 construction contract that was completed in 2012. The following information was taken from Upton's 2010 accounting records:
 
What amount of revenue should Upton recognize on the contract in 2010?

Accepted Answer

A)  $6,000,000 
B)  $5,400,000 
C)  $9,000,000 
D)  $0 
A)  $6,000,000 
B)  $5,400,000 
C)  $9,000,000 
D)  $0

Question 18

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Accepted Answer

A permanent difference arises when, for

Question 19

Differences between income before taxes and taxable income are either ____________________ or ____________________.

Accepted Answer

permanent,

Question 20

Gorilla, Corp. implemented a defined-benefit pension plan for its employees on January 2, 2012. The following data are provided for year 2012, as of December 31:
  What amount should Gorilla record as additional minimum pension liability at December 31, 2012?

Accepted Answer

A)  $0 
B)  $5,000 
C)  $20,000 
D)  $45,000 
A)  $0 
B)  $5,000 
C)  $20,000 
D)  $45,000

Although LIFO generally provides higher quality earnings measures, FIFO generally provides higher _____________________________________________ measures.

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

All of the following are events that can change the projected benefit obligation (PBO) during a period except :

The difference between the economic resources received from customers and the economic resources paid to suppliers, employees and other providers of goods and services is called ____________________.

All of the following are true regarding accrual accounting except :

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

Which of the following accounts would not be considered a reserve account?

Presented below is pension information related to Roberts Corp. for the year 2012: The amount of pension expense to be reported for 2012 is:

To calculate a company's average tax rate an analyst would:

Income tax expense consists of two components, the portion and the portion.

U.S. GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

All of the following are most likely to change the FMV of pension plan assets during a given period except :

Regarding actuarial assumptions, firms must disclose in notes to the financial statements all of the following except :

A minimum liability for pension expense is reported when:

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Differences between income before taxes and taxable income are either or .

Gorilla, Corp. implemented a defined-benefit pension plan for its employees on January 2, 2012. The following data are provided for year 2012, as of December 31: What amount should Gorilla record as additional minimum pension liability at December 31, 2012?

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

Although LIFO generally provides higher quality earnings measures, FIFO generally provides higher _____________________________________________ measures.

____________________ differences result from including revenues and expenses in income before taxes in a different period than those items affect taxable income.

A company that uses FIFO will find that its ___________________________________ account tends to be somewhat out of date.

All of the following are events that can change the projected benefit obligation (PBO) during a period except :

The difference between the economic resources received from customers and the economic resources paid to suppliers, employees and other providers of goods and services is called ____________________.

All of the following are true regarding accrual accounting except :

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

Which of the following accounts would not be considered a reserve account?

Presented below is pension information related to Roberts Corp. for the year 2012: The amount of pension expense to be reported for 2012 is:

To calculate a company's average tax rate an analyst would:

Income tax expense consists of two components, the ____________________ portion and the ____________________ portion.

U.S. GAAP requires firms to report the assets and liabilities of defined benefit plans _______________________________________________________.

All of the following are most likely to change the FMV of pension plan assets during a given period except :

Regarding actuarial assumptions, firms must disclose in notes to the financial statements all of the following except :

A minimum liability for pension expense is reported when:

Explain the difference between a temporary and a permanent timing difference for income tax purposes"

Differences between income before taxes and taxable income are either ____________________ or ____________________.

Gorilla, Corp. implemented a defined-benefit pension plan for its employees on January 2, 2012. The following data are provided for year 2012, as of December 31: What amount should Gorilla record as additional minimum pension liability at December 31, 2012?

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

Income tax expense consists of two components, the portion and the portion.

Differences between income before taxes and taxable income are either or .