Recent Question

Stock dividends distributable should be classified 1. Which of the following may be a current liability? a. Withheld Income Taxes b. Deposits Received from Customers c. Deferred Revenue d. All of these answers are correct. 2. Which of the following items is a current liability? a. Bonds (for which there is an adequate sinking fund properly classified as a long-term investment) due in three months. b. Bonds due in three years. c ...

Other / Other 04 Apr 2016

Under iGAAP, assets that qualify for interest capitalization True/False 1. Under international accounting standards, historical cost is the preferred treatment for property, plant, and equipment. 2. Recently changes to iGAAP require companies to capitalize borrowing costs related to qualifying assets. 3. Under iGAAP, interest costs incurred during construction of a plant asset cannot be capitalized. 4. Under iGAAP, if a company us ...

Other / Other 04 Apr 2016

Which of these costs can Tram capitalize in accordance 1. Thomas Company, a company who uses iGAAP reporting standards, is disposing of a plant asset. The amount of gain or loss from this disposal is a. reported as the difference between the sales proceeds and the carrying amount of the asset. b. not reported. c. reported as the market value less the recoverable amount. d. reported as the difference between the net cash flows of the ...

Other / Other 04 Apr 2016

What does the current ratio inform you about a company 1. What condition(s) is/are necessary to recognize an asset retirement obligation? a. Company has an existing legal obligation and can reasonably estimate the amount of the liability. b. Company can reasonably estimate the amount of the liability. c. Company has an existing legal obligation. d. Obligation event has occurred. 2. Which of the following is not a factor that is con ...

Other / Other 04 Apr 2016

If a short-term obligation is excluded from current liabilities 1. Which of the following statements is false? a. A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis and demonstrates an ability to complete the refinancing. b. Cash dividends should be recorded as a liability when they are declared by the board of directors. c. Under the cash basis me ...

Other / Other 04 Apr 2016

Show the calculation of the amount of the gain or loss Pr. 1—Nonmonetary exchange. Rogers Co. had a sheet metal cutter that cost $96,000 on January 5, 2006. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2011, the old cutter is exchanged for a new cutter with a market value of $48,000. The exchange lacked commercial substance. Rogers also received $12,000 cash. Assume that the last f ...

Other / Other 04 Apr 2016

Barden Building Company constructed various assets Pr. 1—Capitalization of interest. During 2010, Barden Building Company constructed various assets at a total cost of $8,400,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2010 were $5,600,000. The company had the following debt outstanding at December 31, 2010: 1. 10%, 5-year note to finance construction of vario ...

Other / Other 04 Apr 2016

Bargain Surplus made cash sales during the month of October 1. Parton owes $2 million that is due on February 28. The company borrows $1,600,000 on February 25 (5-year note) and uses the proceeds to pay down the $2 million note and uses other cash to pay the balance. How much of the $2 million note is classified as long-term in the December 31 financial statements. a. $2,000,000. b. $0. c. $1,600,000. d. $400,000. 2. Venible news ...

Other / Other 04 Apr 2016

Which of the following is the proper way to report a gain contingency 1. Which of the following is an example of a contingent liability? a. Obligations related to product warranties. b. Possible receipt from a litigation settlement. c. Pending court case with a probable favorable outcome. d. Tax loss carryforwards. 2. Which of the following terms is associated with recording a contingent liability? a. Possible. b. Likely. c. Rem ...

Other / Other 04 Apr 2016

What is a discount as it relates to zero-interest-bearing 1. What is the relationship between current liabilities and a company's operating cycle? a. Liquidation of current liabilities is reasonably expected within the company's operating cycle (or one year if less). b. Current liabilities are the result of operating transactions. c. Current liabilities can't exceed the amount incurred in one operating cycle. d. There is no relationsh ...

Other / Other 04 Apr 2016