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Multiple Choice Questions 1) Which of the following is not a reason for a company to expand through a combination, rather than by building new facilities? A) A combination might provide cost advantages. B) A combination might provide fewer operating delays. C) A combination might provide easier access to intangible assets. D) A combination might.
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14) On December 31, 2010, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance.
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35) Describe the major differences in characteristics that exist when comparing a large government agency to a large public company. 36) Clearly distinguish between a government business organization and a non-business government organization. 37) The Public Sector Accounting Board suggested several objectives for the financial statements of federal, provincial, and territorial governments..
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11) What is the risk of an apparent gain or loss arising from the restatement of financial statements prepared in one currency to another currency called? A) Transaction exposure B) Accounting exposure C) Economic exposure D) Restatement exposure 12) What is the impact of currency realignment on the earnings ability of a foreign operation known.
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38) Research surveys have suggested that there are several qualitative characteristics that are desirable in published financial reports of governmental units. Explain why comparability is so important to users and what this means for users. 39) According to PSAB, when and how is revenue measured in government entities? Explain how transfers.
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3) At December 31, 2011, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophocles Company. In addition, Pandora agreed to pay the owners of Sophocles an additional $200,000 if a specific contract achieved the profit levels that were targeted by.
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1) Sparrow Pension Plan is a not-for-profit organization that administers the pension fund held for the employees of Sparrow Tech Ltd. What type of fund is the pension fund? A) Reserve fund B) Self-sustaining fund C) Fiduciary fund D) Endowment fund 2) Which statements are affected by inter-fund loans? A) Statement of operations and consolidated statements B).
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43) Describe the four fundamental ways in which not-for-profit organizations differ from business enterprises. What are the reporting objectives of NFPs? 44) World Doctors (WD) is a not-for-profit organization that provides medical expertise and equipment in areas of the world that cannot afford this type of service or have been struck.
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39) Contributions received by NFPs may be restricted. Funds can be received in the form of endowment contributions and contributions that are externally restricted by the donor or internally restricted by the board. Required: Explain the differences between endowment contributions and contributions that are externally restricted by the donor or internally restricted.
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Multiple Choice Questions 1) What method of accounting will generally be used when one company purchases less than 20% of the outstanding stock of another company? A) Only the fair value method may be used. B) Only the equity method may be used. C) Either the fair value method or the equity method may.
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31) What type of not-for-profit (NFP) organization may be allowed to use the restricted fund method? A) Any NFP organization B) Any NFP that has a general fund for unrestricted contributions C) Any NFP that has at least one internally restricted fund D) Any NFP that has at least one externally restricted fund 32) When.
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37) Liverpool Company operates retail stores in Canada and an exporting business in London that specializes in buying and selling British tweeds. The London subsidiary provided the following financial statements in pounds sterling to the Canadian parent company. LIVERPOOL COMPANY, London Branch Statement of Comprehensive Income Year Ended December 31, 20X5 Sales£ 2,300,000 Cost of.
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41) PSAB defines a government organization as one that is "controlled by the government". Explain what is meant by "control" and how this is assessed for governments. Explain how controlled entities are reported. 42) One of the largest sources of revenue for governments is government transfers. Government transfers represent non-exchange revenue..
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11) Which of the following is not a suggested objective for financial statements for public sector entities? A) To provide an accounting of financial affairs and resources B) To enable evaluation of compliance with legislation C) To provide information on financing and investing activities D) To determine if programs are economical, efficient, and effective 12).
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6) Bigga Corporation purchased the net assets of Petit, Inc. on January 2, 2011 for $380,000 cash and also paid $15,000 in direct acquisition costs. Petit, Inc. was dissolved on the date of the acquisition. Petit's balance sheet on January 2, 2011 was as follows: Accounts receivable-net$90,000Current liabilities$75,000 Inventory 220,000 Long term.
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11) What exchange rate is usually used to report non-monetary assets on the statement of financial position? A) Historical rate B) Spot rate C) Closing rate D) Fair value 12) What is a currency swap an example of? A) A futures contract B) A call option C) A derivative instrument D) A forward contract 13) What does the holder of.
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39) Liverpool Company operates retail stores in Canada and an exporting business in London that specializes in buying and selling British tweeds. The London subsidiary, which was acquired on January 1, 1986, provided the following financial statements in pounds sterling to the Canadian parent company. LIVERPOOL COMPANY, London Branch Statement of Comprehensive.
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46) Beauty Care Limited (BCL) manufactures and distributes leather furniture to various companies in Europe. On April 2, 20X6, BCL entered into a sales contract with a company in Germany to sell 1,000 sofas. The contract price is €2,000 per sofa. Five hundred sofas are to be delivered in May.
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1) Which of the following statements about incorporated not-for-profit (NFP) organizations is true? A) Incorporated NFP organizations can only issue preferred share capital. B) Incorporated NFP organizations do not have share capital. C) Incorporated NFP organizations can only be government-owned. D) NFP organizations cannot be incorporated. 2) One of the programs that the Tyger Society.
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42) Helvetia Corp., a Swiss firm, bought merchandise from Bouchard Company of Quebec on December 15, 20X7, for 20,000 CHF, payable on January 14, 20X8. Bouchard and Helvetia both close their books on December 31. The 20,000 CHF was paid on January 14, 20X8. The exchange rates for CHF1 were: December.
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43) On January 1, 20X6, Clock Inc. of Vancouver purchased 75% of the outstanding shares of Time Limited in London, England. Time Limited's statements of financial position and statements of comprehensive income and changes in equity–retained earnings section for the year ended December 31, 20X7, are below. Additional information: 1.Time was incorporated.
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8) On January 2, 2011, Pilates Inc. paid $900,000 for all of the outstanding common stock of Spinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below. Cash$200,000 Accounts Receivable220,000 Copyrights (purchased)400,000 Goodwill120,000 Liabilities(180,000) Net assets$760,000 On January 2, 2011, Spinning anticipated collecting $185,000 of the recorded Accounts Receivable..
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Exercises 1) Parrot Incorporated purchased the assets and liabilities of Sparrow Company at the close of business on December 31, 2011. Parrot borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Sparrow's recorded assets and liabilities as.
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21) Mr. Generous donated $100,000 to Excel Private School and specified that the principal amount not be spent but be maintained permanently. Interest on the invested funds can be used to award scholarships to those who excel in drama. How should the $100,000 contribution be presented on Excel Private School's.
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1) Who is the largest issuer of debt? A) Banks B) Government C) Publicly accountable enterprises D) Private enterprises 2) Which of the following is not a typical characteristic of a non-business organization? A) No equity investors B) May have restrictive funds C) Relies on the sale of goods and services D) Provision of collective goods and services 3) One.
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Use the following information to answer the question(s) below. Polka Corporation exchanges 100,000 shares of newly issued $1 par value common stock with a fair market value of $20 per share for all of the outstanding $5 par value common stock of Spot Inc. and Spot is then dissolved. Polka paid.
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1) Under the temporal method, which of the following items would be translated using the year-end spot rate? A) Inventory B) Land C) Long-term debentures D) Building 2) Under the temporal method, which of the following items would be translated using the historical rate? A) Inventory B) Accounts receivable C) Accounts payable D) Long-term debentures 3) Which of the following.
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48) Under IFRS, a hedging relationship qualifies for special hedge accounting rules only if it meets five conditions. Required: Explain the conditions that must be met for a derivative to qualify for special hedge accounting. Identify what qualifies as a hedged item. Identify what qualifies as a hedging instrument. Outline the conditions.
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39) Under IAS 34, companies generally should use the discreet approach for interim reporting. However, IAS 34 outlines exceptions to this rule. Explain what these exceptions are and how they are treated in interim reports. What argument does IAS 34 provide for this treatment? 40) Sharst Link Company (SLC) is a.
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32) The Alfred Company has operations in several international regions. These regions reported the following information: SegmentRevenuesProfitAssets A$3,500$600 $9,000 B4,000300 6,000 C1,100(200)2,400 D2,800300 10,400 E1,400100 2,000 $12,800$1,100 $29,800 Which of these segments are reportable? Fully document all supporting calculations. 33) Ravens Inc. sells office furniture, including desks, chairs, partitioning walls, and office supplies, in more than six countries. The.
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