acctg 334 learnsmart final
both the service cost and interest cost increase the
APBO
bart company has a pbo balance of 400 million and a plan assets balance of 500 million. bart will report
a 100 million asset
the two items that are required for a cash dividend to be declared are
a sufficient balance in retained earnings cash
a deferred tax ______ occurs when there is a future deductible amount
asset
what numbers are combined to determine income tax expense
changes in valuation allowance for deferred tax assets changes in deferred tax assets and liabilities changes in liability for uncertain tax positions income tax payable
defined _________ pension plans use straightforward accounting that requires little explanation
contribution
initial direct costs include
costs associated with completing the lease agreement costs that would not have been incurred if the lease agreement did not exist costs necessary to acquire the lease
in year 1, rim corporation purchases 1,000 shares of treasury stock for $10 per share. In year 2, rim reissues 100 shares of the treasury stock for $12 per share. In year 3, rim reissues 500 shares of its treasury stock for $9 per share. The journal entry to record the reissuance of treasury stock in year 3 will include which of the following?
debit paid in capital- treasury shares $200 debit retained earnings $300
which of the following account balances provides information about a company's future revenue?
deferred revenue
which of the following items are classified as deferred tax liabilities?
depreciation deducted for tax in excess of depreciation expense bad debt deductions in excess of bad debt expense
Corr inc. leases equipment from LM leasing corp. the lease requires rental payments of $20,000 per year for 5 years. Title of the property transfers at the end of the lease term. The equipment has a useful life of 10 years. How should the lease be classified by Corr?
finance lease
the most common reasons for a sale-leaseback transaction are to
generate cash refinance at a lower rate
which items on the income statement require separate income tax allocation?
income from continuing operations discontinued operations
which of the following items are permanent differences
interest on municipal bonds life insurance proceeds on the death of insured executive premiums paid for life insurance on key officers
recognizing deferred tax assets and liabilities is referred to as __________ tax allocation
interperiod
allocating income taxes within a particular reporting period is referred to as what?
intraperiod tax collection
a valuation allowance is needed If _______ that some portion or all of a deferred tax asset will not be realized
it is more likely than not
when the lessor's implicit rate is unknown, which rate should be used to calculate the present value of the lease payments for the lessee?
lessee's incremental borrowing rate
in an operating lease, the ________ records no asset or liability at the inception of the lease and the _______ records both
lessor; lessee
which of the following are uncertainties related to funding a defined benefit pension plan?
life expectancy retirement age return on plan assets employee turnover
in a corporation, shareholders' liability is
limited to the amount of the investment
when the dividend exceeds the balance in retained earnings, the excess is referred to as a _________ dividend
liquidating
a credit balance in retained earnings indicates that
net income has exceeded the dividends distributed to shareholders
how are deferred tax assets and liabilities classified on the balance sheet?
noncurrent
which of the following are included in comprehensive income
other comprehensive income net income
which item creates a future deductible amount?
receipt of rental revenue in advance
a net operating loss carryforward
reduces taxable income in future years
which of the following would be included in the lessor's gross investment in the lease?
residual value periodic lease payments
which of the following cause a deferred tax liability to occur?
revenue being reported on the tax return after the income statement expense being reported on the tax return before the income statement
mueller company issues one share in exchange for two outstanding shares of common shares. Mueller must have had a
reverse stock split
The rights of common stockholders typically include which of the following?
right to dividends when declared right to distribution of assets in liquidation right to vote for corporate directors
which of the following costs will change the APBO
service cost interest cost
the term treasury stock refers to
stock that is repurchased and not retired
which of the following items would create a deferred tax asset?
subscriptions collected in advance
companies with sizeable unrecognize pension costs will exhibit a relatively high _____ earnings component
temporary
which return is used to calculate pension expense
the expected return
which of the following represent common reasons for the curtailment or settlement of defined pension plans
the inherent risk of the plans for employers the cost and burden of paperwork and reporting requirement related to the plans
Royce has 100,000 shares of $10 par issued and outstanding. Royce declares a 2 for 1 stock split in the form of a stock dividend. Which of the following are true?
the number of shares outstanding increases the par value will not change
the lessee records the right of use asset as
the present value of lease payments
if a lease contains a bargain purchase option, the lessee should amortize the right of use asset over
the useful life of the asset
which of the following are required disclosure for deferred tax assets and liabilities in the notes to the financial statements?
total valuation allowance for deferred tax assets total of all deferred tax assets effect of each type of temporary difference
which of the following items would create a deferred tax liability?
unrealized gains from recording investments at fair value accelerated depreciation on the tax return in excess of depreciation on the income statement
victor inc rewards its managers for achieving certain target sales. Victor should recognize the related bonuses
when the targets are met