ACC 499 Effective Communication - tutorialrank.com

1. ACC 499 Final Exam Part 1 (2 Sets) For more course tutorials visit www.tutorialrank.com This Tutorial contains 2 Sets of Final (All Question Listed Below) ACC 499 Final Exam Part 1 (Set 1) ACC 499 - Final Exam Part 1 (Chapters 5-7) Question 1 Vested benefits are Question 2 According to current GAAP, termination benefits paid to an employee should be Question 3 The projected benefit obligation is equal to the Question 4 Which of the following is not a component of the net periodic pension expense to be reported on a company's income statement?

2. Question 5 Unrecognized prior service cost would be reported on the balance sheet and affect the amount(s) reported for Question 6 If an employer were to account for a defined benefit pension plan on the cash basis, it would be a violation of the Question 7 GAAP for pension plans requires companies with defined benefit pension plans to Question 8 A company's net periodic pension cost (expense) includes all of the following items except Question 9 The expense for other postretirement benefits, such as health care benefits, dental benefits, and eye care benefits, currently is accounted for Question 10 Spoofing is which of the following? Question 11 A risk assessment should: Question 12

3. The best way to reduce fraud in an e-business environment is to focus on _______? Question 13 Viewing information that passes along a network communication channel is referred to as: Question 14 ___________ are self-contained programs that spread via direct transfer, email, or another mechanism. Question 15 What is the primary electronic transaction and document control used in e-commerce? Question 16 Separation of duties falls under which of the following internal control element Question 17 Generally, the best way to prevent fraud in e-business settings is to focus on: Question 18 Phillips Corp. purchased raw materials with a catalog price of $60,000. Credit terms of 3/15, n/60 apply. If Phillips uses the net price method, the purchase should be recorded at Question 19

4. The purchases discounts taken account may appear in the accounting records if which one of the following methods is used to account for purchase discounts? Question 20 The cost of goods sold can be determined only after a physical count of inventory on hand under the Question 21 An American company purchasing goods from a foreign supplier has to account for differences in currencies. This process is made easier Question 22 Which of the following items would not be used in the calculation of the cost-to-retail ratio if the FIFO retail inventory method were used to determine the ending inventory? Question 23 When comparing the lower of cost to market Question 24 The most common approach to implementing the lower of cost or market rule for inventory valuation is to apply it Question 25 Relevance of the gross profit margin depends upon ACC 499 Final Exam Part 1 (Set 2) Final Part 1 ACC 499 Capstone

5. Question 1 Current GAAP requires that the net gain or loss from a settlement or curtailment be included in the Question 2 Because of significant government funding of benefits to retirees, it is likely that total pension costs are Question 3 Vested benefits are Question 4 The interest rate that may be used to compute the interest cost component of pension expense is equal to the Question 5 Current GAAP defines the required calculations for all of the following items except Question 6 GAAP for pension plans requires companies with defined benefit pension plans to Question 7 The expense for other postretirement benefits, such as health care benefits, dental benefits, and eye care benefits, currently is accounted for Question 8

6. A company's net periodic pension cost (expense) includes all of the following items except Question 9 A pension plan provides for future retirement income based on the employee's income and length of service with the company. This type of pension plan is termed a Question 10 Viewing information that passes along a network communication channel is referred to as: Question 11 Which is the most secure method of computer authorization? Question 12 In an electronic environment, no other control can better prevent fraud than the wise use of: Question 13 Which of the following uses features of the human body to create secure access controls? Question 14 Spoofing is which of the following? Question 15 Traditional ___ reduces the risk of falsified identity.

7. Question 16 Locks on the doors to the computer room, is an example of which electronic control? Question 17 Specific fraud risks to conducting e-business include: Question 18 Phillips Corp. purchased raw materials with a catalog price of $60,000. Credit terms of 3/15, n/60 apply. If Phillips uses the net price method, the purchase should be recorded at Question 19 An American company purchasing goods from a foreign supplier has to account for differences in currencies. This process is made easier Question 20 A retail firm would normally use an inventory account titled Question 21 IFRS do not allow the use of LIFO because it Question 22 When comparing the lower of cost to market Question 23

8. Which of the following items would not be used in the calculation of the cost-to-retail ratio if the FIFO retail inventory method were used to determine the ending inventory? Question 24 The most common approach to implementing the lower of cost or market rule for inventory valuation is to apply it Question 25 When applying lower of cost or market, market value ********************************************* ACC 499 Final Exam Part 2 (4 Sets) For more course tutorials visit www.tutorialrank.com This Tutorial contains 4 Sets (All Question Listed Below) ACC 499 Final Exam Part 2 (Set 1) Question 1

9. A member of the AICPA must safeguard the confidentiality of client information. Auditors, however, must disclose information to non- clients for the following reasons except to: Question 2 Independence is not required for which of the following types of services? Question 3 In which of the following situations would a CPA not be considered independent? Question 4 Mark Pulley is an auditor at Pulley and Hurst, LLC. If Pulley's five-year- old daughter owns shares of stock in McBurgers Corporation, then Pulley is considered to have what type of interest in McBurgers Corporation? Question 5 Which one of the following is an example of a conflict of interest for a CPA? Question 6 William Tyler, CPA, may not accept a commission for recommending a product or service to which type of client? Question 7 The ethical framework derived from utilitarianism and rights theories indicates all of the following steps except

10. Question 8 Normally the auditor is not permitted to divulge confidential information obtained from a client. Which of the following situations would be a violation of this requirement? Question 9 Which of the following indicates a strong internal control environment? Question 10 When duties cannot be segregated, the most important internal control procedure is Question 11 The fundamental difference between internal and external auditing is that Question 12 The importance to the accounting profession of the Sarbanes-Oxely Act is that Question 13 Control activities under SAS 109/COSO include Question 14 Control risk is Question 15 The most cost-effective type of internal control is

11. Question 16 Which of the following suggests a weakness in the internal control environment? Question 17 Tests of controls include Question 18 Which of the following taxes are included in the total income tax expense of a corporation reported on its Federal tax return? Question 19 Which of the following items are not included in the financial statement income tax note effective tax rate reconciliation? Question 20 Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Paint also owns 40% of Green, Inc., a domestic corporation. Paint receives no distributions from any of these corporations. Which of these entities' net income are included in Paint's income statement for current year financial reporting purposes? Question 21 Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative deferred tax asset and liability accounts with Cold, which of the following should Hot do? Question 22

12. Music, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Music also owns 12% of Record, Inc., a domestic corporation. Music receives no distributions from any of these corporations. Which of these entities' net income are included in Music's income statement for current year financial reporting purposes? Question 23 Which of the following items are not included in the income tax note for a publicly traded company? Question 24 Which of the following represent temporary book-tax differences? Question 25 North, Inc., earns book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's deferred income tax asset reported on its financial statements for 2010? ACC 499 Final Exam Part 2 (Set 2) Final Part 2 ACC 499 Capstone Question 1 The AICPA Principles of Professional Conduct include which of the following? Question 2

13. Which one of the following is an example of a conflict of interest for a CPA? Question 3 Which of the following represents a situation in which an auditor is independent of the client? Question 4 In which of the following situations would a CPA not be considered independent? Question 5 The ethical framework derived from utilitarianism and rights theories indicates all of the following steps except Question 6 Which of the following is included in the AICPA Code of Professional Conduct? Question 7 Normally the auditor is not permitted to divulge confidential information obtained from a client. Which of the following situations would be a violation of this requirement? Question 8 A member of the AICPA must safeguard the confidentiality of client information. Auditors, however, must disclose information to non- clients for the following reasons except to: Question 9

14. Which of the following is a preventive control? Question 10 An accounting system that maintains an adequate audit trail is implementing which internal control procedure? Question 11 When duties cannot be segregated, the most important internal control procedure is Question 12 The concept of reasonable assurance suggests that Question 13 The most cost-effective type of internal control is Question 14 The fundamental difference between internal and external auditing is that Question 15 Substantive tests include Question 16 The decision to extend credit beyond the normal credit limit is an example of Question 17

15. Control risk is Question 18 Which of the following represent temporary book-tax differences? Question 19 North, Inc., earns book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's deferred income tax asset reported on its financial statements for 2010? Question 20 How are deferred tax liabilities and assets categorized on the balance sheet? Question 21 Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative deferred tax asset and liability accounts with Cold, which of the following should Hot do? Question 22 Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Paint also owns 40% of Green, Inc., a domestic corporation. Paint receives no distributions from any of these corporations. Which of these entities' net income are included in Paint's income statement for current year financial reporting purposes? Question 23

16. Nocera, Inc. earns book net income before tax of $600,000 in 2010. Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $120,000. Nocera has no other temporary or permanent differences. Assuming the U.S. tax rate is 35%, what is Nocera's total income tax expense reported on its financial statements for 2010? Question 24 Which of the following items are not included in the income tax note for a publicly traded company? Question 25 Larson, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Larson. If the auditors determine that a valuation allowance of $30,000 must be placed against Larson's deferred tax assets, what is Larson's total book tax expense? ACC 499 Final Exam Part 2 (Set 3) Review Test Submission: Final Exam Part 2 Question 1 The ethical framework derived from utilitarianism and rights theories indicates all of the following steps except Question 2 Mark Pulley is an auditor at Pulley and Hurst, LLC. If Pulley's five-year- old daughter owns shares of stock in McBurgers Corporation, then Pulley is considered to have what type of interest in McBurgers Corporation?

17. Question 3 A member of the AICPA must safeguard the confidentiality of client information. Auditors, however, must disclose information to non- clients for the following reasons except to: Question 4 Which of the following is not an aspect of Rule 201 of the General Standards of the Code of Professional Conduct? Question 5 A CPA may only practice public accounting in which of the following forms? Question 6 Which one of the following is an example of a conflict of interest for a CPA? Question 7 Rule 201, dealing with General Standards that are applicable to all CPAs no matter the type of services that are rendered, does not include which factor? Question 8 Independence is not required for which of the following types of services? Question 9 Substantive tests include

18. Question 10 A physical inventory count is an example of a Question 11 The importance to the accounting profession of the Sarbanes-Oxely Act is that Question 12 The board of directors consists entirely of personal friends of the chief executive officer. This indicates a weakness in Question 13 The decision to extend credit beyond the normal credit limit is an example of Question 14 Control risk is Question 15 The office manager forgot to record in the accounting records the daily bank deposit. Which control procedure would most likely prevent or detect this error? Question 16 The concept of reasonable assurance suggests that Question 17

19. Which of the following suggests a weakness in the internal control environment? Question 18 Which of the following items are not included in the income tax note for a publicly traded company? Question 19 North, Inc., earns book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's deferred income tax asset reported on its financial statements for 2010? Question 20 Music, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Music also owns 12% of Record, Inc., a domestic corporation. Music receives no distributions from any of these corporations. Which of these entities' net income are included in Music's income statement for current year financial reporting purposes? Question 21 Nocera, Inc. earns book net income before tax of $600,000 in 2010. Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $120,000. Nocera has no other temporary or permanent differences. Assuming the U.S. tax rate is 35%, what is Nocera's total income tax expense reported on its financial statements for 2010? Question 22

20. Which of the following represent temporary book-tax differences? Question 23 Which of the following items are not included in the financial statement income tax note effective tax rate reconciliation? Question 24 How are deferred tax liabilities and assets categorized on the balance sheet? Question 25 Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Paint also owns 40% of Green, Inc., a domestic corporation. Paint receives no distributions from any of these corporations. Which of these entities' net income are included in Paint's income statement for current year financial reporting purposes? ACC 499 Final Exam Part 2 (Set 4) Question 1 A CPA may only practice public accounting in which of the following forms? Question 2 A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? Question 3

21. The AICPA Principles of Professional Conduct include which of the following? Question 4 Which of the following is not an aspect of Rule 201 of the General Standards of the Code of Professional Conduct? Question 5 In which of the following situations would a CPA not be considered independent? Question 6 Which of the following is included in the AICPA Code of Professional Conduct? Question 7 Mark Pulley is an auditor at Pulley and Hurst, LLC. If Pulley's five-year- old daughter owns shares of stock in McBurgers Corporation, then Pulley is considered to have what type of interest in McBurgers Corporation? Question 8 Which one of the following is an example of a conflict of interest for a CPA? Question 9 An accounting system that maintains an adequate audit trail is implementing which internal control procedure? Question 10

22. Which of the following suggests a weakness in the internal control environment? Question 11 The most cost-effective type of internal control is Question 12 When duties cannot be segregated, the most important internal control procedure is Question 13 Substantive tests include Question 14 Which of the following is a preventive control? Question 15 The concept of reasonable assurance suggests that Question 16 Inherent risk Question 17 The office manager forgot to record in the accounting records the daily bank deposit. Which control procedure would most likely prevent or detect this error? Question 18

23. North, Inc., earns book net income before tax of $500,000 in 2010. In computing its book income, North deducts $50,000 more in warranty expense for book purposes than allowed for tax purposes. North has no other temporary or permanent differences. Assuming the U.S. tax rate is 35% and no valuation allowance is required, what is North's deferred income tax asset reported on its financial statements for 2010? Question 19 Which of the following items are not included in the financial statement income tax note effective tax rate reconciliation? Question 20 Which of the following represent temporary book-tax differences? Question 21 Hot, Inc.'s primary competitor is Cold, Inc. When comparing relative deferred tax asset and liability accounts with Cold, which of the following should Hot do? Question 22 Nocera, Inc. earns book net income before tax of $600,000 in 2010. Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $120,000. Nocera has no other temporary or permanent differences. Assuming the U.S. tax rate is 35%, what is Nocera's total income tax expense reported on its financial statements for 2010? Question 23 Which of the following items are not included in the income tax note for a publicly traded company?

24. Question 24 Which of the following taxes are included in the total income tax expense of a corporation reported on its Federal tax return? Question 25 How are deferred tax liabilities and assets categorized on the balance sheet? ********************************************* ACC 499 Midterm Exam Part 1(4 Sets) For more course tutorials visit www.tutorialrank.com This Tutorial contains 4 Sets (All Question Listed below) ACC 499 Midterm Part 1 (Set 1) ACC 499 Midterm Part 1 Question 1 Which of the following is not a required disclosure by a lessee of an operating lease?

25. Question 2 Which of the following facts would require a lessee to classify a lease as a capital lease? Question 3 When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 4 FASB's rules concerning leases are an attempt to record in the financial statements Question 5 As a generalized statement regarding lease accounting, which statement best describes U.S. versus international accounting principles? Question 6 The account Unearned Interest: Leases should be reported on the lessor's financial statements as Question 7 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 8 A direct financing lease differs from a sales-type lease in that Question 9

26. A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to Question 10 When a lessee makes periodic cash payments for an operating lease, which of the following accounts is increased? Question 11 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 12 A lease will be treated as a direct financing lease by the lessor when Question 13 The corporate form of organization is important to the U.S. economy because Question 14 The authorized shares of capital stock is the number of shares Question 15 In the financial statements, dividends in arrears on cumulative preferred stock should be Question 16 In accounting for a stock split, a company usually Question 17

27. Which of the following types of corporations is owned or operated by a government unit? Question 18 Under the fair value method, the grant date is the date Question 19 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 20 Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract? Question 21 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the Question 22 Which set of accounting principles directly uses the term "reserve"? Question 23 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 24 A corporation is a legal entity

28. Question 25 Preferred stockholders share with common stockholders in any "extra" dividends when the preferred stock is ACC 499 Midterm Part 1 (Set 2) Question 1 Minimum lease payments do not include Question 2 A direct financing lease differs from a sales-type lease in that Question 3 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is increased? Question 4 Executory costs Question 5 On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company's property, plant, and equipment leased to others is Question 6 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 7

29. When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 8 Which of the following is not a required disclosure by a lessee of an operating lease? Question 9 Which of the following facts would require a lessee to classify a lease as a capital lease? Question 10 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is decreased? Question 11 Which of the following is not a required disclosure by a lessor of a sales- type lease? Question 12 A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to Question 13 When stock options are exercised by an employee under a compensatory stock option plan, the issuance of the common stock is recorded at the Question 14

30. Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n) Question 15 Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract? Question 16 Preferred stockholders share with common stockholders in any "extra" dividends when the preferred stock is Question 17 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 18 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 19 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 20 For stock appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is

31. Question 21 Dividends in arrears pertain to Question 22 A non compensatory stock option plan is designed to Question 23 The corporate form of organization is important to the U.S. economy because Question 24 The preference to dividends that preferred stockholders have is Question 25 A corporation is a legal entity ACC 499 Midterm Part 1 (Set 3) Review Test Submission: Midterm Exam Part 1 Question 1 The account Unearned Interest: Leases should be reported on the lessor's financial statements as Question 2 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 3

32. The lessee should classify a non-cancellable long-term lease as a capital lease if Question 4 When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 5 A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to Question 6 Which is an advantage of leasing from a lessee's viewpoint? Question 7 The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as Question 8 When is it appropriate for the lessee to use the lessor's implicit rate to discount the minimum lease payments? Question 9 Minimum lease payments do not include Question 10 A direct financing lease differs from a sales-type lease in that Question 11

33. Executory costs Question 12 Depreciation expense will be recorded in the accounts of the Question 13 Which set of accounting principles directly uses the term "reserve"? Question 14 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 15 Dividends in arrears pertain to Question 16 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a non compensatory stock option plan is recorded by the corporation at the Question 17 The value assigned to stock warrants for a non compensatory stock option plan is calculated as Question 18 The corporate form of organization is important to the U.S. economy because

34. Question 19 A corporation whose stock is traded on a stock exchange is called a(n) Question 20 The accounting method that is used for stock appreciation rights (SARs) compensation plans is similar to the accounting procedures that can be used for Question 21 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 22 The authorized shares of capital stock is the number of shares Question 23 Universities, hospitals, and churches are examples of which type of corporation? Question 24 In accounting for a stock split, a company usually Question 25 A non compensatory stock option plan is designed to ACC 499 Midterm Part 1 (Set 4) Question 1

35. In a sales-type lease Question 2 When is it appropriate for the lessee to use the lessor's implicit rate to discount the minimum lease payments? Question 3 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is decreased? Question 4 The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as Question 5 FASB's rules concerning leases are an attempt to record in the financial statements Question 6 When a lessor receives cash on a sales-type lease, which of the following accounts is decreased? Question 7 A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to Question 8 In a sales-leaseback transaction

36. Question 9 On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company's property, plant, and equipment leased to others is Question 10 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 11 Any initial direct costs incurred by the lessor for a sales-type lease should be Question 12 Which of the following is not a required disclosure by a lessee of an operating lease? Question 13 A corporation is a legal entity Question 14 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 15 The value assigned to stock warrants for a noncompensatory stock option plan is calculated as Question 16

37. A noncompensatory stock option plan is designed to Question 17 For stock appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is Question 18 The authorized shares of capital stock is the number of shares Question 19 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 20 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the Question 21 When stock options are exercised by an employee under a compensatory stock option plan, the issuance of the common stock is recorded at the Question 22 Preferred stockholders share with common stockholders in any "extra" dividends when the preferred stock is Question 23

38. In accounting for a stock split, a company usually Question 24 Which of the following types of corporations is owned or operated by a government unit? Question 25 The corporate form of organization is important to the U.S. economy because ********************************************* ACC 499 Midterm Exam Part 2(3 Sets) For more course tutorials visit www.tutorialrank.com This Tutorial contains 3 Sets (All Question Listed Below) ACC 499 Midterm Part 2 (Set 1) Question 1 Accountants sometimes refer to the equity method as a(n)

39. Question 2 When an investor owns less than a majority of the voting stock of another corporation, the accountant must judge when the investor can exert significant influence. For the sake of uniformity, U.S. GAAP and IFRS presume that significant influence exists at ownership of _____ or more of the voting stock of the investee. (Assume that management does not have a contractual or other basis to demonstrate that influence.) Question 3 U.S. GAAP view investments of between 20 and 50 percent of the voting stock of another company (unless evidence indicates that significant influence cannot be exercised) as Question 4 When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as Question 5 U.S. GAAP view investments of less than 20 percent of the voting stock of another company as Question 6 To avoid double counting P's investment in S, P must eliminate Question 7 The equity method of accounting for an investment in the common stock of another company should be used when the investment Question 8

40. An intercompany transaction is a transaction between Question 9 If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by Question 10 Intercompany sales Question 11 A minority, active investment is generally Question 12 Often, the parent does not own 100% of the voting stock of a consolidated subsidiary. The parent refers to the owners of the remaining shares of voting stock as a Question 13 Which of the following is included in full IFRS but eliminated for SMEs’ IFRS? Question 14 Which is one of the FASB/IASB convergence projects? Question 15 Which of the following is not included in the income statement? Question 16

41. Which of the following is not included in financial statements? Question 17 Which point supports the use of IFRS by U.S. public companies? Question 18 Which international organization began the movement toward international accounting standards? Question 19 What is the correct order of steps in applying the revenue recognition model?(1) Identify the separate performance obligations in the contract(2) Identify the contract with the customer(3) Determine the transaction price for the entire contract(4) Recognize revenue when each separate performance obligation is satisfied(5) Allocate the transaction price to separate performance obligation Question 20 Which is one of the key activities that will lead to a company’s successful IFRS conversion? Question 21 Recoverable amount is the higher of the following: Question 22 Which of the following are differences between U.S. GAAP and IFRS? Question 23

42. Which of the following entities may not gain distinct advantages from adopting IFRS for SMEs? Question 24 Which country is the only major country not to formally commit to the adoption of IFRS? Question 25 Which of the following does IFRS require accounting students and educators to learn? ACC 499 Midterm Part 2 (Set 2) Question 1 A minority, active investment is generally Question 2 An intercompany transaction is a transaction between Question 3 Minority, passive investments are initially recorded at the Question 4 To avoid double counting P's investment in S, P must eliminate Question 5 For which type of investments would unrealized increases and decreases be recorded directly in an owners' equity account?

43. Question 6 Intercompany sales Question 7 U.S. GAAP and IFRS require firms to account for minority, active investments, using the _____ method. Question 8 U.S. GAAP view investments of between 20 and 50 percent of the voting stock of another company (unless evidence indicates that significant influence cannot be exercised) as Question 9 Consolidated financial statements are typically prepared when one company has Question 10 U.S. GAAP view investments of less than 20 percent of the voting stock of another company as Question 11 U.S. GAAP and IFRS require firms to account for business combinations using the _____ method. Question 12 When an investor owns less than a majority of the voting stock of another corporation, the accountant must judge when the investor can exert significant influence. For the sake of uniformity, U.S. GAAP and IFRS presume that significant influence exists at ownership of _____ or

44. more of the voting stock of the investee. (Assume that management does not have a contractual or other basis to demonstrate that influence.) Question 13 What is the major difference between how U.S GAAP and IFRS handle share-based payments? Question 14 Which of the following does IFRS require accounting students and educators to learn? Question 15 What is the appropriate reason why people object to adopting the roadmap? Question 16 Recoverable amount is the higher of the following: Question 17 What is the correct order of steps in applying the revenue recognition model?(1) Identify the separate performance obligations in the contract(2) Identify the contract with the customer(3) Determine the transaction price for the entire contract(4) Recognize revenue when each separate performance obligation is satisfied(5) Allocate the transaction price to separate performance obligation Question 18 Which are two conditions that must be met before revenue is to be recognized under IFRS?

45. Question 19 Which one is not a characteristic of rules-based standards? Question 20 Which point supports the use of IFRS by U.S. public companies? Question 21 Which of the following is not a component of the Conceptual Framework for Financial Reporting? Question 22 Which international organization began the movement toward international accounting standards? Question 23 Which are two major differences between U.S. GAAP and IFRS in accounting for property, plant, and equipment (PPE)? Question 24 Which of the following are differences between U.S. GAAP and IFRS? Question 25 Which of the following is not included in financial statements? ACC 499 Midterm Part 2 (Set 3) Question 1

46. U.S. GAAP view investments of less than 20 percent of the voting stock of another company as Question 2 When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as Question 3 If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by Question 4 When an investor owns less than a majority of the voting stock of another corporation, the accountant must judge when the investor can exert significant influence. For the sake of uniformity, U.S. GAAP and IFRS presume that significant influence exists at ownership of _____ or more of the voting stock of the investee. (Assume that management does not have a contractual or other basis to demonstrate that influence.) Question 5 An intercompany transaction is a transaction between Question 6 U.S. GAAP and IFRS require firms to account for minority, active investments, using the _____ method. Question 7 To avoid double counting P's investment in S, P must eliminate

47. Question 8 The equity method of accounting for an investment in the common stock of another company should be used when the investment Question 9 Paula Company recognizes unrealized changes in the fair value of available-for-sale securities in Question 10 For which type of investments would unrealized increases and decreases be recorded directly in an owners' equity account? Question 11 U.S. GAAP view investments of between 20 and 50 percent of the voting stock of another company (unless evidence indicates that significant influence cannot be exercised) as Question 12 When preparing consolidated financial statements, the result of the elimination process generally is the Question 13 Which is one criterion of SMEs? Question 14 What is the correct order of steps in applying the revenue recognition model?(1) Identify the separate performance obligations in the contract(2) Identify the contract with the customer(3) Determine the transaction price for the entire contract(4) Recognize revenue when each

48. separate performance obligation is satisfied(5) Allocate the transaction price to separate performance obligation Question 15 Which of the following entities may not gain distinct advantages from adopting IFRS for SMEs? Question 16 Which point supports the use of IFRS by U.S. public companies? Question 17 Which of the following does IFRS require accounting students and educators to learn? Question 18 Which is one of the key activities that will lead to a company’s successful IFRS conversion? Question 19 Which are two major differences between U.S. GAAP and IFRS in accounting for property, plant, and equipment (PPE)? Question 20 What is the major difference between how U.S GAAP and IFRS handle share-based payments? Question 21 Which of the following is not included in the income statement?

49. Question 22 Which are two conditions that must be met before revenue is to be recognized under IFRS? Question 23 Which of the following is included in full IFRS but eliminated for SMEs’ IFRS? Question 24 Recoverable amount is the higher of the following: Question 25 Which of the following is not included in financial statements? ********************************************* ACC 499 Week 1 DQ 1 Operating and Capital Leases and DQ 2 Leasing Restatements For more course tutorials visit www.tutorialrank.com Week 1 Discussion 1

50. Operating and Capital Leases" Please respond to the following: From the e-Activity, analyze the results of the proposed changes to lease accounting on operating and capital leases. Identifying how the right-of- use model will impact financial reporting, indicate how companies are likely to manage the change in reporting. Discuss recommendations you would make to chief financial officers (CFOs) of retailers, service providers, and other businesses that lease several locations or have substantial leases of real estate or other assets. Indicate the pros and cons of each approach. Week 1 Discussion 2 "Leasing Restatements in the Restaurant Industry" Please respond to the following: From the case study, create an argument for the use of principles-based accounting for leases over rules-based accounting under GAAP, based on the financial statement restatements in the restaurant industry. Provide support for your argument. Assess the materiality of the errors, direction provided by the Securities and Exchange Commission (SEC), and the Sarbanes-Oxley Act (SOX) on the decision by management to restate the financial statements. Indicate the likely impact to stakeholders when financial statements are restated. ********************************************* ACC 499 Week 2 DQ 1 Equity-Based Compensation and DQ 2 Harley-Davidson(B) 2010