Intermediate Accounting

When dividends are declared in one fiscal year and paid in the next fiscal year, the liability for the dividend should be recorded as of the: A. Date the dividend is declared. B. Last day of the fiscal year. C. Date of record. D. Date of payment.

A

The unamortized balance of discount on bonds payable is reported in the balance sheet as....

a contra- liability

Treasury shares are most often reported as:

A reduction of total shareholders' equity

When a deposit on a returnable containers is forfeited the firm holding the deposit will experience

An increase in Revenue

Proffered stock is called preferred because it usually has two preferences. They prefer to....

Assets at liquidation and dividens

Which of the following creates a deferred tax liability A.) Customer advanced received for future services B.) Accelerated depreciation in the tax return C.) Warranty Expense D.) Subscription Collected in advance

B

The lessee's option to purchase a leased asset at a price that is sufficiently lower than the assets expected fair value..

Bargain Purchase Option

Ordinarily, the proceeds from the sale of a bond issue will be equal to: A. The face amount of the bond. B. The total of the face amount plus all interest payments. C. The present value of the face amount plus the present value of the stream of interest payments. D. The face amount of the bond plus the present value of the stream of interest payments.

C

The compensation associated with restricted stock under a stock award plan is: A. the book value of an unrestricted share of the same stock times the number of shares. B. the estimated fair value of a share of similar stock times the number of shares. C. allocated to expense over the service period which usually is the vesting period. D. the book value of a share of similar stock times the number of shares.

C

GAAP regarding accounting for income taxes requires the following procedure:

Computing of deferred tax assets and liabilities based on temporary differences

Which of the following causes a permanent difference between tax. Income and pretax accounting income...

Interest on Municipal bonds

Which of the following is not a characteristic of a liability

It must be payable in Cash

When bonds are sold at a discount and the effective interest rate method is used the cash interest payment...

Less than the effective interest rate

The accounting concept that requires recognition of a liability for customer premium offers is..

Matching Princy

Two of the three primary account classifications within shareholders' equity are:

Paid In capital Retained earnings

A net operating loss carryforward cannot result in the balance sheet at the end of the year showing a..

Receivable under current asset for an income tax refund

Short-term obligations can be reported as long-term liabilities if:

The firm intends and has the ability to refinance as long term

One of the five criteria for a finance lease specifies that the present value of the lease payments be equal to or greater than:

the MAJOR part of the remaining economic life of the leased property