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




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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