Question 1

Historical costs include all of the following except:

Accepted Answer

A)  acquisition costs for assets 
B)  net realizable values for assets. 
C)  adjusted acquisition costs for assets. 
D)  initial present value for assets and liabilities 
A)  acquisition costs for assets 
B)  net realizable values for assets. 
C)  adjusted acquisition costs for assets. 
D)  initial present value for assets and liabilities

Question 2

If a portfolio manager had to estimate the fair value of investments in timber,which of the following would he/she most likely identify as the level of inputs to determine this?

Accepted Answer

A)  Level 1. 
B)  Levels 1 and 2. 
C)  Levels 2 or 3. 
D)  All levels would be applicable. 
A)  Level 1. 
B)  Levels 1 and 2. 
C)  Levels 2 or 3. 
D)  All levels would be applicable.

Question 3

U.S.GAAP,IFRS,and other major accounting standards are best characterized as:

Accepted Answer

A)  historical accounting models. 
B)  current value accounting models. 
C)  acquisition cost accounting models. 
D)  mixed attribute accounting models. 
A)  historical accounting models. 
B)  current value accounting models. 
C)  acquisition cost accounting models. 
D)  mixed attribute accounting models.

Question 4

Balance Sheet Equation  
-Refer to the Balance Sheet Equation.To recognize the cost of goods sold ORP Corporation will reduce retained earnings and reduce ______________________________.

Accepted Answer

non-cash a

Question 5

If a portfolio manager had to estimate the fair value of real estate,which of the following would he/she most likely identify as the level of inputs to determine this?

Accepted Answer

A)  Level 1. 
B)  Level 2. 
C)  Level 3. 
D)  None of these. 
A)  Level 1. 
B)  Level 2. 
C)  Level 3. 
D)  None of these.

Question 6

Interest on Municipal Bonds represents what kind of tax difference?

Accepted Answer

A)  Permanent timing difference that results in that income item not being taxed. 
B)  Temporary difference that will reversed in the future 
C)  Tax rate on Municipal bonds are based on estimated tax rates. 
D)  Not recognized in taxable income on the accrual basis of accounting. 
A)  Permanent timing difference that results in that income item not being taxed. 
B)  Temporary difference that will reversed in the future 
C)  Tax rate on Municipal bonds are based on estimated tax rates. 
D)  Not recognized in taxable income on the accrual basis of accounting.

Question 7

The analytical framework used to evaluate transactions is reproduced below:
   Using this analytical framework,indicate the effect of each of the following transactions for Staples Corporation:

Accepted Answer

The answer of The analytical framework used to evaluate transactions...

Question 8

Valuation methods that reflect current values or a combination of historical and current values include all of the following except:

Accepted Answer

A)  fair value for assets and liabilities. 
B)  current replacement cost for assets. 
C)  net realizable value for assets. 
D)  adjusted acquisition costs for assets. 
A)  fair value for assets and liabilities. 
B)  current replacement cost for assets. 
C)  net realizable value for assets. 
D)  adjusted acquisition costs for assets.

Question 9

The accounting equation is represented by Assets= Liabilities + Stockholders' Equity which of the following would cause a change in the stockholders' equity accounts:

Accepted Answer

A)  Sale of Land for cash and a note receivable for the balance 
B)  Collection of an account receivable 
C)  Purchased an asset for cash and 10,000 shares of preferred stock 
D)  Purchased inventory on account 
A)  Sale of Land for cash and a note receivable for the balance 
B)  Collection of an account receivable 
C)  Purchased an asset for cash and 10,000 shares of preferred stock 
D)  Purchased inventory on account

Question 10

Items,such as interest revenue on municipal bond holdings,that do not affect taxable income or income taxes paid in any year are referred to as _____________________________________________.

Accepted Answer

permanent

Question 11

The amount initially paid to acquire an asset is called ______________________________.

Accepted Answer

The answer of The amount initially paid to acquire an...

Question 12

When income tax expense differs from income taxes currently payable on taxable income companies recognize deferred tax assets and deferred tax liabilities.What type of event would create a deferred tax asset and deferred tax liability?

Accepted Answer

Deferred tax assets arise when taxable i

Question 13

Balance Sheet Equation  
-Refer to Balance Sheet Equation.ORP Corporation Purchases land for $9,000 cash and 1,000 shares of common stock values at 10 per share.This transaction results in ORP recording a decrease in cash of $9,000,an increase in non-cash assets of $ 19,000,and an increase in ______________________________ of $10,000

Accepted Answer

The answer of Balance Sheet Equation  
-Refer to Balance...

Question 14

Acquisition costs includes all costs necessary to get an asset ready for its _________________________.

Accepted Answer

The answer of Acquisition costs includes all costs necessary to...

Question 15

Accord Inc.income tax return shows taxes currently payable for 2011 of $85,000.The company reported deferred tax assets of $35,000 at the end of 2010 and $24,000 at the end of 2011.Accord reported deferred tax liabilities of $48,000 at the end of 2011 and $54,000 at the end of 2011.
Determine the amount of income tax expense reported by Accord for 2011.

Accepted Answer

Accord's income tax

Question 16

Firms use acquisition cost valuations and adjusted acquisition cost valuations for which of the following types of assets?

Accepted Answer

A)  Assets that do not have fixed amounts of future cash flows. 
B)  Assets that have fixed amounts of future cash flows. 
C)  Assets with certain future economic benefits. 
D)  monetary 
A)  Assets that do not have fixed amounts of future cash flows. 
B)  Assets that have fixed amounts of future cash flows. 
C)  Assets with certain future economic benefits. 
D)  monetary

Question 17

The income statement approach to measuring income tax expense:

Accepted Answer

A)  is required by FASB Statement No.109. 
B)  compares revenues and expenses recognized for book and tax purposes,eliminates permanent differences,and computes income tax expense based on book income before taxes excluding permanent differences. 
C)  computes income tax expense as a difference between the tax basis of an asset or a liability and its reported amount in the [balance sheet] that will result in taxable or deductible amounts in some future year(s)when the reported amounts of assets are recovered and the reported amounts of liabilities are settled. 
D)  is required by IAS 12. 
A)  is required by FASB Statement No.109. 
B)  compares revenues and expenses recognized for book and tax purposes,eliminates permanent differences,and computes income tax expense based on book income before taxes excluding permanent differences. 
C)  computes income tax expense as a difference between the tax basis of an asset or a liability and its reported amount in the [balance sheet] that will result in taxable or deductible amounts in some future year(s)when the reported amounts of assets are recovered and the reported amounts of liabilities are settled. 
D)  is required by IAS 12.

Question 18

All of the following can be used to describe reliability of accounting information except:

Accepted Answer

A)  biased. 
B)  credible. 
C)  verifiable. 
D)  supported by source documents. 
A)  biased. 
B)  credible. 
C)  verifiable. 
D)  supported by source documents.

Question 19

Revenues and expenses that firms include in both net income to shareholders and in taxable income,but in different periods are referred to as _____________________________________________.

Accepted Answer

temporary

Question 20

Current replacement cost represents:

Accepted Answer

A)  the amount a firm would have to pay currently to acquire an asset it now holds 
B)  the amount a firm would have to pay currently to acquire an asset it does not now hold 
C)  the amount a firm would have to pay in the future to acquire an asset it now holds 
D)  the amount a firm would have to pay to purchase a comparably depreciated version of the asset it now holds 
A)  the amount a firm would have to pay currently to acquire an asset it now holds 
B)  the amount a firm would have to pay currently to acquire an asset it does not now hold 
C)  the amount a firm would have to pay in the future to acquire an asset it now holds 
D)  the amount a firm would have to pay to purchase a comparably depreciated version of the asset it now holds

Historical costs include all of the following except:

If a portfolio manager had to estimate the fair value of investments in timber,which of the following would he/she most likely identify as the level of inputs to determine this?

U.S.GAAP,IFRS,and other major accounting standards are best characterized as:

Balance Sheet Equation -Refer to the Balance Sheet Equation.To recognize the cost of goods sold ORP Corporation will reduce retained earnings and reduce ______________________________.

If a portfolio manager had to estimate the fair value of real estate,which of the following would he/she most likely identify as the level of inputs to determine this?

Interest on Municipal Bonds represents what kind of tax difference?

The analytical framework used to evaluate transactions is reproduced below: Using this analytical framework,indicate the effect of each of the following transactions for Staples Corporation:

Valuation methods that reflect current values or a combination of historical and current values include all of the following except:

The accounting equation is represented by Assets= Liabilities + Stockholders' Equity which of the following would cause a change in the stockholders' equity accounts:

Items,such as interest revenue on municipal bond holdings,that do not affect taxable income or income taxes paid in any year are referred to as _____________________________________________.

The amount initially paid to acquire an asset is called ______________________________.

When income tax expense differs from income taxes currently payable on taxable income companies recognize deferred tax assets and deferred tax liabilities.What type of event would create a deferred tax asset and deferred tax liability?

Acquisition costs includes all costs necessary to get an asset ready for its _________________________.

Firms use acquisition cost valuations and adjusted acquisition cost valuations for which of the following types of assets?

The income statement approach to measuring income tax expense:

All of the following can be used to describe reliability of accounting information except:

Revenues and expenses that firms include in both net income to shareholders and in taxable income,but in different periods are referred to as _____________________________________________.

Current replacement cost represents:

Overview of Financial Reporting,financial Statement Analysis,and Valuation

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

Profitability Analysis

Risk Analysis

Accounting Quality

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

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Exam 2: Asset and Liability Valuation and Income Recognition

Historical costs include all of the following except:

If a portfolio manager had to estimate the fair value of investments in timber,which of the following would he/she most likely identify as the level of inputs to determine this?

U.S.GAAP,IFRS,and other major accounting standards are best characterized as:

Balance Sheet Equation -Refer to the Balance Sheet Equation.To recognize the cost of goods sold ORP Corporation will reduce retained earnings and reduce ______________________________.

If a portfolio manager had to estimate the fair value of real estate,which of the following would he/she most likely identify as the level of inputs to determine this?

Interest on Municipal Bonds represents what kind of tax difference?

The analytical framework used to evaluate transactions is reproduced below: Using this analytical framework,indicate the effect of each of the following transactions for Staples Corporation:

Valuation methods that reflect current values or a combination of historical and current values include all of the following except:

The accounting equation is represented by Assets= Liabilities + Stockholders' Equity which of the following would cause a change in the stockholders' equity accounts:

Items,such as interest revenue on municipal bond holdings,that do not affect taxable income or income taxes paid in any year are referred to as _____________________________________________.

The amount initially paid to acquire an asset is called ______________________________.

When income tax expense differs from income taxes currently payable on taxable income companies recognize deferred tax assets and deferred tax liabilities.What type of event would create a deferred tax asset and deferred tax liability?

Acquisition costs includes all costs necessary to get an asset ready for its _________________________.

Firms use acquisition cost valuations and adjusted acquisition cost valuations for which of the following types of assets?

The income statement approach to measuring income tax expense:

All of the following can be used to describe reliability of accounting information except:

Revenues and expenses that firms include in both net income to shareholders and in taxable income,but in different periods are referred to as _____________________________________________.

Current replacement cost represents:

Overview of Financial Reporting,financial Statement Analysis,and Valuation

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

Profitability Analysis

Risk Analysis

Accounting Quality

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