ACC/305 ACC305 ACC 305 WEEK 10 QUIZ 2

ACC 305 WEEK 10 QUIZ 2

Multiple Choice Question 21

Which of the following should be disclosed in a Summary of Significant Accounting Policies?

Amount for cumulative effect of change in accounting principle

 

Claims of equity holders

 

Depreciation method followed

 

Types of executory contracts

 

Multiple Choice Question 59

An inventory loss from market decline of $1,200,000 occurred in May 2015, after its March 31, 2015 quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements?

Three Months Ended
	3/31/15		6/30/15		9/30/15		12/31/15

 

$-0-   $400,000   $400,000   $400,000

 

$300,000   $300,000   $300,000   $300,000

 

$-0-   $-0-   $-0-   $1,200,000

 

$-0-   $1,200,000   $-0-   $-0-

 

Multiple Choice Question 35

In presenting segment information, which of the following items must be reconciled to the entity's consolidated financial statements?

Revenues

Operating Profit (Loss)

Identifiable Assets

 

Yes   Yes   Yes

 

No   Yes   Yes

 

Yes   Yes   No

 

Yes   No   Yes

Multiple Choice Question 76

The following information pertains to Nixon Corp. and its divisions for the year ended December 31, 2015.

on and all of its divisions are engaged solely in manufacturing operations. Nixon has a reportable segment if that segment's revenue exceeds

$390,000.

 

$300,000.

 

$306,000.

 

$396,000.

 

Multiple Choice Question 24

The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

Enough information should be disclosed in the financial statements so a person wishing to invest in the stock of the company can make a profitable decision.

 

Disclosure of any financial facts significant enough to influence the judgment of an informed reader.

 

All information related to an entity's business and operating objectives is required to be disclosed in the financial statements.

 

Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements.

 

IFRS Multiple Choice Question 13

IFRS is important for U.S. investors for all of the following reasons except

the SEC requires that foreign companies that list on U.S. stock exchanges provide a reconciliation between IFRS and U.S. GAAP.

 

financial markets are among the most significant international markets.

 

many U.S. companies, such as McDonald's, generate 50% of their sales outside the U.S.

 

mergers frequently take place between companies from different countries.

 

Multiple Choice Question 31

An operating segment is a reportable segment if

its operating profit is 10% or more of the combined operating profit of profitable segments.

 

the absolute amount of its operating profit or loss is 10% or more of the company's combined operating profit or loss.

 

its operating loss is 10% or more of the combined operating losses of segments that incurred an operating loss.

 

None of these answers are correct.

 

Multiple Choice Question 27

Events that occur after the December 31, 2015 balance sheet date (but before the balance sheet is issued) and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be

used to record an adjustment to Bad Debt Expense for the year ending December 31, 2015

 

used to record an adjustment directly to the Retained Earnings account

 

disclosed only in the Notes to the Financial Statements.

 

discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report.

 

Multiple Choice Question 77

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for

Interim Financial Reporting

Year-end Financial Reporting

 

No   Yes

 

Yes   No

 

No   No

 

Yes   Yes

 

Multiple Choice Question 75

Unruh Corp. and its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2015.

						Assets

In its segment information for 2015, how many reportable segments does Unruh have?

Five

 

Six

 

Three

 

Four

 

Multiple Choice Question 25

According to GAAP, the disclosure of accounting policies adopted by a reporting entity is important to financial statement readers in determining

whether the working capital position is adequate for future operations.

 

net income for the year.

 

the value of obsolete items included in ending inventory.

 

whether accounting policies are consistently applied from year to year.

 

IFRS Multiple Choice Question 07

Benjamin Company uses IFRS, while Iris, Inc. uses U.S. GAAP, for their external financial reporting. On January 16, 2015, both companies settled lawsuits relating to industrial accidents that occurred in 2013. Benjamin Company paid $550,000 and Iris, Inc. paid $230,000. Assuming that no accrual had been previously made, what amount of loss should be reported on the income statement for the year ended December 31, 2014 for each company?

Benjamin Company

Iris, Inc.

 

$-0-   $-0-

 

$-0-   $230,000

 

$550,000   $-0-

 

$550,000   $230,000