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31.The following information pertains to inventory held by a company on December 31, 2011.What amount of inventory should be reported under IFRS? A.$25,000. B.$27,000. C.$30,000. D.$5,000. E.$2,000. 32.The following information pertains to inventory held by a company on December 31, 2011.What is the amount of inventory loss shown on the income statement under IFRS? A.$0. B.$3,000. C.$14,000. D.$10,000. E.$8,400. 33.The following information.
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Multiple Choice Questions 1.Which one of the following is not a division of the SEC? A.theDivision of Corporation Finance. B.theDivision of Investment Management. C.theDivision of Compliance Information. D.theDivision of Enforcement. E.theDivision of Trading and Markets. 2.The goals of the SEC include all except which one of the following? A.prohibiting the dissemination of materially misstated information. B.controlling the number of.
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53.What are some of the common elements that can be included in a reorganization proposal? 54.Who must accept and confirm the Reorganization plan? 55.How is the presentation of an income statement during a reorganization different from a normal income statement? 56.How is the presentation of a balance sheet during a reorganization different from.
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84.Coyote Corp. (a U.S. company in Texas) had the following series of transactions in a foreign country during 2011:The appropriate exchange rates during 2011 were as follows:What amount will Coyote Corp. report in its 2011 income statement for Sales? 85.Coyote Corp. (a U.S. company in Texas) had the following series of.
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11.Which of the following are not authoritative pronouncements of International Financial Reporting Standards (IFRSs)?1) International Financial Reporting Standards issued by the IASB2) International Accounting Standards issued by the IASC and adopted by the IASB3) Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC)4) U.S. Generally Accepted Accounting Principles A.4 only. B.3.
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Short Answer Questions57.A company that was to be liquidated had the following liabilities:The company had the following assets:Total assets available to pay liabilities with priority and unsecured creditors are calculated to be what amount? 58.A company that was to be liquidated had the following liabilities:The company had the following assets:Total liabilities.
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11.On a statement of financial affairs, a company's assets should be valued at A.historical cost. B.net realizable value, if lower than historical cost. C.replacement cost. D.net realizable value, if higher than historical cost. E.net realizable value, whether higher or lower than historical cost. 12.On a statement of financial affairs, a company's liabilities should be valued at A.the.
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55.What are the four different ways IFRS can be used by a country? 56.What are the six key FASB initiatives to further convergence? 57.What accounting topics were covered under the FASB short-term convergence project? 58.What are recognition differences in international reporting and what would be an example of a difference? 59.What are measurement differences.
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21.Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000.How much should the mortgage holder expect.
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41.Under the temporal method, how would cost of goods sold be remeasured? A.Beginning of the year rate. B.Average rate. C.Current rate. D.Historical rate. E.Composite amount. 42.Under the current rate method, how would cost of goods sold be translated? A.Beginning of the year rate. B.Average rate. C.Current rate. D.Historical rate. E.Composite amount. 43.Where is the disposition of a translation loss reported in the.
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11.Sinkal Co. was formed on January 1, 2011 as a wholly owned foreign subsidiary of a U.S. corporation. Sinkal's functional currency was the stickle(§). The following transactions and events occurred during 2011:What was the amount of the translation adjustment for 2011? A.$52,000 decrease in relative value of net assets. B.$60,800 decrease in.
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Essay Questions47.For each of the following situations, select the best answer concerning information forms filed with the SEC:(A.) Form 10-K(B.) Form 10-Q(C.) Form 8-K(D.) Not required___ 1. A unique or significant happening.___ 2. Annual information required by Regulation S-X.___ 3. Changes in control of the registrant.___ 4. Interim financial statements.___.
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31.Under the temporal method, inventory at market would be remeasured at what rate? A.Beginning of the year rate. B.Average rate. C.Current rate. D.Historical rate. E.Composite amount. 32.Under the current rate method, inventory at market would be translated at what rate? A.Beginning of the year rate. B.Average rate. C.Current rate. D.Historical rate. E.Composite amount. 33.Under the temporal method, common stock would be remeasured.
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83.A foreign subsidiary of a U.S. corporation purchased equipment on January 4, 2008.(A.) How would depreciation expense on the equipment be translated for 2011?(B.) How would depreciation expense on the equipment be remeasured for 2011? 84.What exchange rate would be used to translate the asset and liability account balances of a.
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Multiple Choice Questions 1.In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must: A.present financial statements that comply with international GAAP. B.conform with U.S. GAAP or present a reconciliation to U.S. GAAP. C.have a demonstrated need for capital to be used for.
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93.For each of the following situations, select the best answer concerning accounting for foreign currency transactions:(G) Results in a foreign exchange gain.(L) Results in a foreign exchange loss.(N) No foreign exchange gain or loss._____1. Export sale by a U.S. company denominated in dollars, foreign currency of buyer appreciates._____2. Export sale.
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67.Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building).Assets available for unsecured.
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11.The prospectus part of a registration contains all except which of the following? A.financial statements for the issuing company audited by an independent CPA along with appropriate supplementary data. B.an explanation of the intended use of the proceeds to be generated by the sale of the new securities. C.a description of the risks.
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Multiple Choice Questions 1.In accounting, the term translation refers to A.the calculation of gains or losses from hedging transactions. B.the calculation of exchange rate gains or losses on individual transactions in foreign currencies. C.the procedure required to identify a company's functional currency. D.the calculation of gains or losses from all transactions for the year. E.a procedure.
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38.What is meant by a "partially secured liability"? 39.What is meant by a "fully secured liability"? 40.What is the difference between a liquidation and a reorganization? 41.What are the three categories of assets in a Statement of Financial Affairs? 42.What are the four categories of debts in a Statement of Financial Affairs? .
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73.What is the primary focus of the Sarbanes-Oxley Act of 2002? 74.Who has the responsibility for the evaluation of the quality of an investment? 75.Name the two broad categories of filings with the SEC. 76.Name five securities offerings exempt from registration with the SEC. 77.Describe the two parts of the SEC registration statement. .
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21.Which one of the following regulates the initial offering of securities by a company or underwriter? A.The Securities Act of 1933. B.The Securities Exchange Act of 1934. C.The Investment Company Act of 1940. D.The Investment Advisers Act of 1940. E.The Sarbanes-Oxley Act of 2002. 22.Which one of the following regulates the subsequent trading of securities through.
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Short Answer Questions 79.Gaw Produce Company purchased inventory from a Japanese company on December 18, 2011. Payment of 4,000,000 yen (¥) was due on January 18, 2012. Exchange rates between the dollar and the yen were as follows:Required:Prepare all journal entries for Gaw Produce Co. in connection with the purchase and.
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21.Which topic was not covered by FASB under the short-term convergence project? A.Inventory costs. B.Asset exchanges. C.Liability transfers. D.Accounting changes. E.Earnings-per-share. 22.The IASB and FASB are working on several joint projects. What is the purpose of the Financial Statement Presentation Project? A.to provide guidance on the application of the acquisition method. B.to enhance the usefulness of information in.
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Essay Questions 45.Why does each country have its own unique set of financial reporting practices? 46.What are the two major types of legal systems used around the world? 47.The major providers of financing in some countries are stockholders, while other countries predominantly use banks as the main financing source. What difference does it.
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68.What are some of the reasons for the corporate scandals of 2001 and 2002? 69.Why was the Public Utility Holding Company Act of 1935 created? 70.What information is required in proxy statements? 71.What Federal agency has Congressional responsibility to create auditing and accounting standards? 72.How has the Sarbanes-Oxley Act of 2002 changed the role.
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51.Esposito is an Italian subsidiary of a U.S. company.Esposito's ending inventory is valued at the average cost for the last quarter of the year.The following account balances are available for Esposito for 2011:Compute the cost of goods sold for 2011 in U.S. dollars using the current rate method. A.$376,550. B.$387,750. C.$388,800. D.$400,950. E.$409,050. 52.Esposito is an.
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63.What is a proxy? Briefly explain the importance of a proxy solicitation. 64.What are the responsibilities of the SEC's Division of Corporation Finance? 65.What are the four interconnected goals that the SEC has tried to achieve? 66.What is required by the Trust Indenture Act of 1939? 67.What information needs to be included in Form.
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Short Answer Questions88.On January 1, 2011, Fandu Corp. began operations of a foreign subsidiary. On April 1, 2011, the subsidiary purchased inventory costing 150,000 stickles. One-fourth of this inventory remained unsold at the end of 2011 while 40% of the liability from the purchase had not yet been paid. The.
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43.What is the purpose of Chapter 7 of the Bankruptcy Reform Act? 44.What is the meaning of the phrase debtor in possession? 45.What are duties of the creditors committee in Chapter 7 liquidation? 46.What is an order for relief? 47.What occurs in the accounting records for fresh start accounting when a bank agrees to.
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Short Answer Questions60.Principal Company is a U.S.-based company that prepares its consolidated financial statements in accordance with U.S. GAAP. Principal reported net income of $2,600,000 in 2011 and stockholders' equity of $12,000,000 at December 31, 2011. Principal wants to determine the reporting impact of switching to IFRS. The following three.
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Essay Questions77.A foreign subsidiary was acquired on January 1, 2011. Determine the exchange rate used to restate the following accounts at December 31, 2011. Land was purchased on October 1, 2011. Relevant exchange dates follow:(A) January 1, 2011(B) October 1, 2011(C) December 31, 2011(D) Average, 2011(E) Composite, using multiple dates.Identify.
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Essay Questions37.For each of the following situations, select the best answer concerning the classification of the liability.(A.) Unsecured without priority (B.) Unsecured with priority(C.) Partially secured(D.) Fully secured___ 1. Payroll taxes payable.___ 2. Land and building valued at $427,000 mortgaged by a bank loan in the amount of $517,000.___ 3..
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21.A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2011:The average exchange rate during 2011 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The.
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41.Which one of the following forms is used in connection with employee stock plans? A.S-8. B.S-3. C.S-4. D.S-1. E.S-11. 42.Which one of the following forms is used in connection with registration of securities of real estate companies? A.S-8. B.S-1. C.S-4. D.S-3. E.S-11. 43.Which one of the following forms is used in connection with registration of securities of a small reporting company with.
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31.Which statement is false regarding a plan for reorganization? A.The plan is the heart of every Chapter 7 bankruptcy. B.The provisions of the plan specify the treatment of all creditors and equity holders upon approval by the Court. C.The plan shapes the financial structure of the entity that emerges. D.The plan may contain numerous.
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62.Bazley Co. had severe financial difficulties and was considering the possibility of filing a bankruptcy petition. At that time, the company had the following assets (stated at net realizable value) and liabilities.In a liquidation, total assets available to pay liabilities with priority and unsecured creditors are calculated to be what.
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78.In translating a foreign subsidiary's financial statements, what exchange rate should be used for the subsidiary's revenues and expenses? 79.How can a parent corporation determine the functional currency for a foreign subsidiary that conducts business in more than one country? 80.What exchange rate should be used to translate (a) revenues and expenses.
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50.How did the early International Accounting Standards (IAS) obtain support from a sufficient number of board members? 51.What is the IOSCO? 52.What were the major objectives of the Treaty of Rome? 53.Which two EU directives have helped harmonize accounting standards? 54.What are the three authoritative pronouncements that make up the International Financial Reporting Standards.
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Multiple Choice Questions 1.A Chapter 7 bankruptcy is a(n) A.involuntary reorganization. B.bankruptcy forced by a company's creditors. C.liquidation. D.bankruptcy in which all creditors receive payment in full. E.voluntary reorganization. 2.Where should a company undergoing reorganization report the gains and losses resulting from the reorganization? A.on the statement of retained earnings. B.on the income statement, combined with the gains and.
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93.Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2011 by acquiring all of the common stock for §50,000 Stickles, the local currency. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2012. A building was.
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