1) haag corp.’s 2013 income statement showed pretax accounting income of $1,250,000.
to compute the federal income tax liability, the following 2013 data are provided:
what amount of current federal income tax liability should be included in hagg’s
december 31, 2013 balance sheet?
a.$ 80,000
b.$110,000
c.$125,000
d.$330,000
2) lexington company sells product 1976nlc for $50 per unit. the cost of one unit of
1976nlc is $45, and the replacement cost is $43. the estimated cost to dispose of a unit
is $10, and the normal profit is 40%. at what amount per unit should product 1976nlc be
reported, applying lower-of-cost-or-market?
a.$20
b.$40
c.$43
d.$45
3) surf company follows ifrs for its external financial reporting. the following amounts
were available at december 31, 2013:
under ifrs, what is the maximum amount that could be reported for cash used by
operating activities for surf company for the year ended december 31, 2013?
a.$59,000
b.$38,000
c.$53,000
d.$75,000
4) which of the following balance sheet classifications would normally require the
greatest amount of supplementary disclosure?
a.current assets
b.current liabilities
c.plant assets
d.long-term liabilities
5) gross corporation adopted the dollar-value lifo method of inventory valuation on
december 31, 2011. its inventory at that date was $440,000 and the relevant price index
was 100. information regarding inventory for subsequent years is as follows:
what is the cost of the ending inventory at december 31, 2012 under dollar-value lifo?
a.$480,000
b.$513,600
c.$482,800
d.$470,800
6) madsen company reported the following information for 2012:
for 2012, madsen would report other comprehensive income of
a.$411,000
b.$405,000
c.$126,000
d.$120,000
7) the major elements of the income statement are
a.revenue, cost of goods sold, selling expenses, and general expense
b.operating section, nonoperating section, discontinued operations, extraordinary items,
and cumulative effect
c.revenues, expenses, gains, and losses
d.all of these
8) unearned revenue on the books of one company is likely to be
a.a prepaid expense on the books of the company that made the advance payment
b.an unearned revenue on the books of the company that made the advance payment
c.an accrued expense on the books of the company that made the advance payment
d.an accrued revenue on the books of the company that made the advance payment
9) given below are the future value factors for 1 at 8% for one to five periods. each of
the items 65 to 68 is based on 8% interest compounded annually.
what amount should be deposited in a bank account today to grow to $10,000 three
years from today?
a.$10,000 1.260
b.$10,000 1.260 3
c.$10,000 1.260
d.$10,000 1.080 3
10) wilcox corporation reported the following results for its first three years of
operation:
there were no permanent or temporary differences during these three years. assume a
corporate tax rate of 30% for 2012 and 2013, and 40% for 2014.
assuming that wilcox elects to use the carryforward provision and not the carryback
provision, what income (loss) is reported in 2013?
a.$(1,350,000)
b.$(810,000)
c.$ -0-
d.$(1,305,000)
11) ifrs and u.s. gaap are
a.similar in the treatment of asset retirement obligations (aros)
b.significantly different when it comes to the treatment of asset retirement obligations
(aros)
c.continuing to evolve in the area of asset retirement obligations (aros)
d.in conflict with respect to the accounting for and presentation of asset retirement
obligations (aros)
12) danson company, a company who uses ifrs reporting standards, has a non-current
asset that has been classified as held-for-sale. when the asset no longer meets this
definition, danson should
a.remove the asset from the statement of financial position
b.remeasure the asset at fair value
c.measure the asset at the lower of its carrying value before it was classified as
held-for-sale and its recoverable amount at the date when the company decided not to
sell it
d.leave the non-current asset on the financial statements at the current carrying value
13) under current gaap, inflation is ignored in accounting due to the
a.economic entity assumption
b.going concern assumption
c.monetary unit assumption
d.periodicity assumption
14) mott co. includes one coupon in each bag of dog food it sells. in return for eight
coupons, customers receive a leash. the leashes cost mott $3 each. mott estimates that
40 percent of the coupons will be redeemed. data for 2012 and 2013 are as follows:
the premium liability at december 31, 2013 is
a.$16,875
b.$31,875
c.$33,750
d.$63,750
15) under the effective-interest method of bond discount or premium amortization, the
periodic interest expense is equal to
a.the stated (nominal) rate of interest multiplied by the face value of the bonds
b.the market rate of interest multiplied by the face value of the bonds
c.the stated rate multiplied by the beginning-of-period carrying amount of the bonds
d.the market rate multiplied by the beginning-of-period carrying amount of the bonds
16) net realizable value is
a.acquisition cost plus costs to complete and sell
b.selling price
c.selling price plus costs to complete and sell
d.selling price less costs to complete and sell