1) members of the financial accounting standards board are
a.employed by the american institute of certified public accountants (
b.part-time employees
c.required to hold a cpa certificate
d.independent of any other organization
2) belgium co. is constructing a tunnel for $800 million. construction began in 2011 and
is estimated to be completed in 2016. at december 31, 2013, belgium has incurred costs
totaling $356 million with $85 million of that incurred in 2013, $143 million in 2012,
and the remainder during 2011. belgium believes that it completed 30% of the tunnel
during 2013, although that may change based on future activity. belgium co. uses igaap
for its accounting and regards its cost numbers as very uncertain. what amount of
revenue should belgium co. recognize for the year ended december 31, 2013?
a.no revenue should be recognized until the contract is completed in 2016.
b.$356 million
c.$240 million
d.$85 million
3) for 2012, cost of goods available for sale for tate corporation was $1,800,000. the
gross profit rate was 20%. sales for the year were $1,600,000. what was the amount of
the ending inventory?
a.$0
b.$520,000
c.$360,000
d.$320,000
4) stock dividends distributable should be classified on the
a.income statement as an expense
b.balance sheet as an asset
c.balance sheet as a liability
d.balance sheet as an item of stockholders’ equity
5) comprehensive income includes all of the following except
a.dividend revenue
b.losses on disposal of assets
c.investments by owners
d.unrealized holding gains
6) valet corp. began operations in 2013. an analysis of valets equity securities portfolio
acquired in 2013 shows the following totals at december 31, 2013 for trading and
available-for-sale securities:
what amount should valet report in its 2013 income statement for unrealized holding
loss?
a.$35,000
b.$5,000
c.$15,000
d.$20,000
7) equipment that cost $88,000 and has accumulated depreciation of $40,000 is
exchanged for equipment with a fair value of $64,000 and $16,000 cash is received. the
exchange lacked commercial substance.
the new equipment should be recorded at
a.$64,000
b.$48,000
c.$40,000
d.$38,400
8) jarvis, inc. reported net income of $34,000 for the year ended december 31, 2013.
included in net income was a gain on early extinguishment of debt of $60,000 related to
bonds payable with a book value of $1,200,000. each of the following accounts
increased during 2013:
what is the amount of cash used by financing activities for jarvis, inc. for the year ended
december 31, 2013?
a.$1,290,000
b.$1,300,000
c.$ 220,000
d.$ 255,000
9) transactions for the month of june were:
assuming that perpetual inventory records are kept in dollars, the ending inventory on a
fifo basis is
a.$6,165
b.$6,240
c.$6,435
d.$6,705
10) collection of loan receivable.
how many of the above items will appear as a cash inflow from investing activities on a
statement of cash flows for the current year?
a.five items
b.four items
c.three items
d.two items