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Which of the following statements is not true with regard to international accounting standards

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Which of the following statements is not true with regard to international accounting standards for research and development costs? (Points: 4);Some countries require research costs to be expensed and development costs to be capitalized.;Some countries allow the capitalization of R&D costs.;The universal practice with regard to R&D costs is to capitalize the expenditures.;R&D costs are accounted for in different ways in different countries.;32. At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have no alternative future uses in research and development or other activities should be (Points: 4);capitalized;charged directly to retained earnings;included in R&D expense immediately;charged as a loss from continuing operations;33. Which of the following statements is true? (Points: 4);No loss contingencies should be disclosed if there is just a reasonable possibility of a loss.;Indirect guarantees should normally be accrued.;In the case of loss contingencies, accrual can be made even if the exact payee and payment date are not known.;Losses may be accrued for unasserted claims and other potential unfiled lawsuits.;35. Which of the following contingencies is usually not accrued in the accounts? (Points: 4);uninsured risk of property loss by fire or other hazards;guarantees of indebtedness of others;noncollectibility of receivables;agreements to repurchase receivables that have been sold;36. Existing claims related to product warranties and litigation as of December 31, 2010 indicate that it is probable that a liability has been incurred. However, as of December 31, 2010, the amount of the obligation cannot be reasonably estimated. Based on these facts, an estimated loss contingency should be (Points: 4);accrued;disclosed but not accrued;neither accrued nor disclosed;classified as an appropriation of retained earnings;37. The Jung Company includes a premium in each box of its cereal. For four premiums plus $2.00, customers are entitled to a plastic doll that costs Jung $4.50 each. Jung expects 60% of the premiums to be redeemed. In 2010, Jung sold 500,000 boxes of cereal and distributed 25,000 dolls. What is Jung's premium expense for 2010? (Points: 4);$125,000;$187,500;$225,000;$337,500;39. On January 1, 2010, Lisa Co. issued $50,000 of 9%, 10-year bonds at 98. Issuance costs amounted to $2,000. On July 1, 2015, all of the bonds were called at 103. What was the loss on bond retirement, assuming the use of straight-line amortization? (Points: 4);$1,950;$2,500;$4,200;$4,750;40. Quail issued $200,000 of its 10-year 12% bonds for $224,924 on October 1, 2010. The effective rate on the bonds was 10% and interest is paid each October 1 and April 1. Assuming Quail uses the effective interest method, the adjusting entry on December 31, 2010, would include a (Points: 4);debit to premium on bonds payable for $1,250;credit to interest payable for $5,623;credit to interest payable for $6,000;debit to interest expense for $6,623;41. The proper procedure for computing the issuance price of a bond includes adding the (Points: 4);maturity value of the bonds to the accrued interest;maturity value of the bonds to the present value of the interest;present value of the principal to the accrued interest;present value of the principal to the present value of the interest;42. Bonds with a face value of $100,000 that are issued for $102,400 have a stated interest rate (Points: 4);that is more than the yield rate;that is less than the yield rate;that is equal to the yield rate;that may be more or less than the yield rate, but there is not enough information given to determine which

 

Paper#32640 | Written in 18-Jul-2015

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