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Question 1 (10 points) Costs incurred subs...

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Question 1 (10 points) Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits. a. True b. False Question 2 (10 points) Improvements are often referred to as betterments and involve the substitution of a better asset for the one currently used. a. True b. False Question 3 (10 points) Changes in estimates are handled prospectively by dividing the asset?s book value less any salvage value by the remaining estimated life. a. True b. False Question 4 (10 points) An impairment loss is the amount by which the carrying amount of the asset exceeds the sum of the expected future net cash flows from the use of that asset. a. True b. False Question 5 (10 points) The cost of acquiring a customer list from another company is recorded as an intangible asset. a. True b. False Question 6 (10 points) True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported. a. True b. False Question 7 (10 points) The cost of purchased patents should be amortized over the remaining legal life of the patent. a. True b. False Question 8 (10 points) Stock splits and large stock dividends have the same effect on a company?s retained earnings and total stockholders? equity. a. True b. False Question 9 (10 points) Companies recognize a gain or loss when stockholders exercise convertible preferred stock. a. True b. Fasle Question 10 (10 points) If a stock dividend occurs after year-end, but before issuing the financial statements, a company must restate the weighted-average number of shares outstanding for the year. a. True b. False Question 11 (10 points) A controlling interest occurs when one corporation acquires a voting interest of more than 50 percent in another corporation. a. True b. False Question 12 (10 points) Trading securities and available-for-sale securities are classified as current or noncurrent assets depending on the circumstances. a. True b. False Question 13 (10 points) A company reduces a deferred tax asset by a valuation allowance if it is probable that it will not realize some portion of the deferred tax asset. a. True b. Fasle Question 14 (10 points) A company should add a decrease in a deferred tax liability to income tax payable in computing income tax expense. a. True b. False Question 15 (10 points) A pension plan is contributory when the employer makes payments to a funding agency. a. True b. Fasle Question 16 (10 points) Qualified pension plans permit deductibility of the employer?s contributions to the pension fund. a. True b. False Question 17 (10 points) A capitalized leased asset is always depreciated over the term of the lease by the lessee. a. True b. False Question 18 (10 points) A lessee records interest expense in both a capital lease and an operating lease. a. True b. Fasle Question 19 (10 points) When a company changes an accounting principle, it should report the change by reporting the cumulative effect of the change in the current year?s income statement. a. True b. False Question 20 (10 points) One of the disclosure requirements for a change in accounting principle is to show the cumulative effect of the change on retained earnings as of the beginning of the earliest period presented. a. True b. False,Thank you for your help. Can you send me each question answered one at a time?,I would need it as soon as possible. Thank you.

 

Paper#6158 | Written in 18-Jul-2015

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