intermediate acct. II
a company may carry back a tax loss for _____ years and carry forward a tax loss for ________ years
2;20
the amount of income a company reports in its financial statements is known as
book income
which statement below is correct about defined benefit pension plans?
deferring actuarial gains and losses tends to smooth earnings
one characteristic of a defined contribution pension plan is
employer contributions are typically based upon salary levels of employees
when accounting for pensions which of the following is true of interest cost?
increases PBO and increases pension expense
the _____ date is when the lease agreement is signed. the ________ date is the date on which the lessee is allowed to begin using the leased asset
lease inception; lease commencement
under a defined benefit pension plan, how is interest cost calculated?
multiply beginning balance PBO by the settlement rate
when a company has a net loss from continuing operations, it should include
no potentially dilutive securities in diluted EPS
Dante Inc. reported fines and penalties on their income statement this year. what book-tax difference will result?
permanent difference; book income less than taxable income
which of the items below is not considered when calculating a defined benefit for a pension?
return on plan assets
when accounting for operating lease, the lessee will record a(n) ____________ and an associated lease liability on the balance sheet.
right of use asset
if the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as a ________. if the lessor meets both of the Group II criteria but none of the Group I criteria, then the lessor classifies the lease as a __________. if the transaction does not meet either of the group I or group II criteria, then the lessor classifies the lease as a ______________
sales type lease; direct financing lease; operating lease
a deferred tax asset exists when
the book basis of liabilities is greater than the tax basis of liabilities
a company is most likely to choose the carry forward option for a net operating loss when
the company expects higher tax rates in the future compared to the past
choose which situation listed below is one where employee compensation is not classified as a liability
the option is granted for the acquisition of securities classified as equity securities
the denominator of EPS equation contains
weighted number of shares common stock outstanding
