Financial Accounting

When an LBO sponsor wishes to exit its investment in 5 years, one way to find th

When an LBO sponsor wishes to exit its investment in 5 years, one way to find the equity value of a company at the LBO sponsor’s exit year is to: a.Use an Enterprise Value/Sales m…

When an accounting change is reportedunder the retroactive approach, account bal

When an accounting change is reportedunder the retroactive approach, account balances in the generalledger: 1) Are notadjusted. 2) Are closed out andthen updated. 3) Are adjusted …

When an auditor concludes there is substantial doubt about a continuing audit cl

When an auditor concludes there is substantial doubt about a continuing audit client’s ability to continue as a going concern for a reasonable period of time, the auditor’s respon…

When an employer in California receives a garnishment order they have to withhol

When an employer in California receives a garnishment order they have to withhold money on the first pay period that ends on or after 10 days from the date of the order. True or F…

When an internal auditor uses monetary-unit statistical sampling to examine the

When an internal auditor uses monetary-unit statistical sampling to examine the total value of invoices, each invoice: A. Has an equal probability of being selected. B. Can be rep…

When an investor appropriately applies the equity method, how should it account

When an investor appropriately applies the equity method, how should it account for any investee Other Comprehensive Income (OCI)? Multiple Choice A. The OCI would reduce the inve…

When an investor company gains control of a subsidiary company, which of the fol

When an investor company gains control of a subsidiary company, which of the following is correct? i. The investor company must consolidate the financial statements of the investo…

When an investor owns 20% to 50% of the voting stock of an investee company, the

When an investor owns 20% to 50% of the voting stock of an investee company, the investor is presumed to exercise significant influence over the investee and the equity methed of …

When an investor owns between 20% and 50% of the common stock of a corporation,

When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor Answer has insignificant influence on the investee and t…

When analyzing insurance expense at the end of the year, it turns out that $1,60

When analyzing insurance expense at the end of the year, it turns out that $1,600 of the current year insurance expense is Key Person Life Insurance and $7,200 was paid for a gene…

When answering please include the \"Why\" thank you. For bonds issued at a premi

When answering please include the "Why" thank you. For bonds issued at a premium, the difference between interest expense and the cash paid increases the carrying value of the bon…

When answering the provided questions, you must ensure that your answers address

When answering the provided questions, you must ensure that your answers address the questions, that your answers have an Australian accounting/financial reporting focus, that you…

When answering the provided questions, you must ensure that your answers address

When answering the provided questions, you must ensure that your answers address the questions, that your answers have an Australian accounting/financial reporting focus, that you…

When answering the question focus on key capital budgeting concepts and tools; t

When answering the question focus on key capital budgeting concepts and tools; the time value of money, return on investment, discounted cash flow techniques, payback period, and …

When applying manufacturing overhead to jobs, the formula to calculate the amoun

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows: A) Predetermined overhead rate divided by the actual manufacturing overhead incurr…

When applying manufacturing overhead to jobs, the formula to calculate the amoun

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows: A. Predetermined overhead rate divided by the actual manufacturing overhead incurr…

When are companies likely to use a job costing system? When are companies likely

When are companies likely to use a job costing system? When are companies likely to use a process costing system? Describe the specific characteristics of each system and provide …

When asked to write the definition of the \"Law of Demand\" on an exam, Chris wr

When asked to write the definition of the "Law of Demand" on an exam, Chris wrote "When the price of a good increases, consumers will decrease the amount that they purchase." Chri…

When assessing earnings persistence it is important to analyze discretionary exp

When assessing earnings persistence it is important to analyze discretionary expenditures. Which of the following statements are correct? I. Research and Development is generally …

When assessing performance, one way to compensate for differences among division

When assessing performance, one way to compensate for differences among divisions of a multinational organization would be for the parent company to: A) Use different target rates…

When auditing a computerized accounting system, the independent auditor should h

When auditing a computerized accounting system, the independent auditor should have a general familiarity with the effects of the use of Information Technology on the various char…

When auditing prepaid insurance: A) for many audits, significant substantive pro

When auditing prepaid insurance: A) for many audits, significant substantive procedures are needed if the control risk is low. B) companies often have a standard monthly journal e…

When beginning and ending inventories include merchandise purchased from the gro

When beginning and ending inventories include merchandise purchased from the gross profit on that merchandise treated in an affilated company, how is the seller's income distribut…

When bonds are purchased in the market by an affiliate, the book value of the in

When bonds are purchased in the market by an affiliate, the book value of the inter company bond liability is: a. The par value of the bonds less unamortized issuance costs and le…

When calculating gross profit percentages, adjustments are made for the total LI

When calculating gross profit percentages, adjustments are made for the total LIFO effects (i.e., both liquidations and declining prices). Which of the following statements is tru…

When cash is paid to suppliers on account, which section ofthe Statement of Cash

When cash is paid to suppliers on account, which section ofthe Statement of Cash Flows is affected? a. Cash Flow from Operating Activities b. Cash Flow from Investing Activities c…

When common stock is issued in exchange for a noncash asset and the market value

When common stock is issued in exchange for a noncash asset and the market value of the stock is determinable, the acquired asset should usually be recorded at an amount equal to …

When companies offer new debt security issues, they publicize the offerings in t

When companies offer new debt security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the debt offerings report…

When companies offer new equity security issues, they publicize the offerings in

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume t following were among the equity offerings repo…

When companies offer new equity security issues, they publicize the offerings in

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings re…

When companies offer new equity security issues, they publicize the offerings in

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume following were among the equity offerings report…

When companies want to grow they need money and if they don\'t use their own cas

When companies want to grow they need money and if they don't use their own cash they will need to borrow the money. This can be done several ways, either through debt or equity. …

When compared to US GAAP, international accounting standards allow: a. About the

When compared to US GAAP, international accounting standards allow: a. About the same latitude b. Less latitude c. much more latitude d. No tolerance from US GAAP According to the…

When compared with the average Nonprofit ROI of social welfare organizations, Sa

When compared with the average Nonprofit ROI of social welfare organizations, Sara Lee’s ROI listed BELOW is which of the following: Lower Higher The Same Sara Lee;s total annual …

When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net

When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease? Target Corporation (http://investors.target.com/phoenix.zhtml?c=65828&p=irol…

When comparing a retail business to a service company, the financial statements

When comparing a retail business to a service company, the financial statements changes the most is: O State of affairs C Statement of revenue and expenditure State equity owner S…

When comparing the difference between an upstream and downstream transfer of inv

When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, which of the following statements is true? a. Income fr…

When comparing two mutually exclusive alternatives by the ROR method, if the rat

When comparing two mutually exclusive alternatives by the ROR method, if the rate of return on the alternative with the higher first cost is less than that of the lower first-cost…

When computing payback period, the year in which a capital investment is made is

When computing payback period, the year in which a capital investment is made is year 1. True False A flexible budget expresses variable costs on a per unit basis and fixed costs …

When computing payback period, the year in which a capital investment is made is

When computing payback period, the year in which a capital investment is made is year 1. True False A flexible budget expresses variable costs on a per unit basis and fixed costs …

When computing standard cost variances, the difference between actual an standar

When computing standard cost variances, the difference between actual an standard price multiplied by actual quantity yields a(n): a. combined price and quantity variance b. effic…

When computing the amount of interest cost to be capitalized, the concept of avo

When computing the amount of interest cost to be capitalized, the concept of avoidable interest' refers to a. the total interest cost actually incurred b. a cost of capital charge…

When computing the weighted-average number of shares outstanding during the year

When computing the weighted-average number of shares outstanding during the year for the purpose of calculating diluted EPS, what is the proper treatment of a midyear issuance of …

When considering an investment opportunity, some investors believe the organizat

When considering an investment opportunity, some investors believe the organization’s statement of cash flows is the most important factor in evaluating the health of the organiza…

When considering how to finance the acquisition of an asset, which of the follow

When considering how to finance the acquisition of an asset, which of the following statements is true? A) The amount borrowed should be larger than the cost of the assets acquire…

When considering how to finance the acquisition of an asset, which of the follow

When considering how to finance the acquisition of an asset, which of the following statements is true? A) The amount borrowed should be larger than the cost of the assets acquire…

When considering moving a franchise overseas most firms first think of markets w

When considering moving a franchise overseas most firms first think of markets which are geographically and culturally close to home. For most American franchisors, for example, C…

When considering the Cost Basis of a Fixed Asset, identify each of the following

When considering the Cost Basis of a Fixed Asset, identify each of the following expenditures as chargeable to (L) Land, (LI) Land Improvements, (B) Buildings, (E) Machinery and E…

When considering the process of preparing a bank reconciliation it\'s noted that

When considering the process of preparing a bank reconciliation it's noted that under normal circumstances only one section of the analysis may generate additional entries on the …

When considering the significance of cost variances, managers should consider al

When considering the significance of cost variances, managers should consider all of the following except the a. size of the variances. b. pattern of recurring variances. c. trend…