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68. How should seasonal revenues be reported in an interim financial
statement?
69. Which of the following are required to be disclosed in interim reports?
70. All of the following are required to be reported in interim financial
statements for a material operating segment
except
:
71. What is the appropriate treatment in an interim financial report for
inventory that has market value below cost?
72. What is the appropriate treatment in an interim financial report for
inventory that has cost below market value?
73. What is the appropriate treatment in an interim financial report for a LIFO
liquidation?
74. Which of the following statements is true regarding the reporting of
revenues in an interim report?
75. What is the appropriate treatment in an interim financial report for
variances arising from the use of a standard costing system?
76. Which of the following costs require similar treatment to Property Tax
Expense in an interim financial report?
1) Annual major repairs.
2) Advertising expense.
3) Bonus expense, if estimable.
4) Quantity discounts based on annual sales.
77. How should contingencies be reported in an interim report?
78. Provo, Inc. has an estimated annual tax rate of 35 percent in the first
quarter of 2011. Pretax income for the first quarter was $300,000. At the end of
the second quarter of 2011, Provo expects the annual tax rate to be 32 percent
because of anticipated tax credits. Pretax income for the second quarter was
$350,000. Assume no items in either quarter requiring the net-of-tax
presentation.
How much income tax expense is recognized in the first quarter of 2011?
79. Provo, Inc. has an estimated annual tax rate of 35 percent in the first
quarter of 2011. Pretax income for the first quarter was $300,000. At the end of
the second quarter of 2011, Provo expects the annual tax rate to be 32 percent
because of anticipated tax credits. Pretax income for the second quarter was
$350,000. Assume no items in either quarter requiring the net-of-tax
presentation.
How much income tax expense is recognized in the second quarter of 2011?
80. Baker Corporation changed from the LIFO method to the FIFO method for
inventory valuation during 2011. Baker has an effective income tax rate of 30
percent and 100,000 shares of common stock issued and outstanding. The
following additional information is available:
Assuming Baker makes the change in the first quarter of 2011, how much is
reported as net income for the first quarter of 2011?
81. Baker Corporation changed from the LIFO method to the FIFO method for
inventory valuation during 2011. Baker has an effective income tax rate of 30
percent and 100,000 shares of common stock issued and outstanding. The
following additional information is available:
Assuming Baker makes the change in the first quarter of 2011, compute net
income per common share.
82. Baker Corporation changed from the LIFO method to the FIFO method for
inventory valuation during 2011. Baker has an effective income tax rate of 30
percent and 100,000 shares of common stock issued and outstanding. The
following additional information is available:
Assuming Baker makes the change in the first quarter of 2011, how much is
reported as net income for the first quarter of 2010?
83. Baker Corporation changed from the LIFO method to the FIFO method for
inventory valuation during 2011. Baker has an effective income tax rate of 30
percent and 100,000 shares of common stock issued and outstanding. The
following additional information is available:
Assuming Baker makes the change in the first quarter of 2011 and that $400,000
net income is earned during the second quarter, how much is reported as net
income for the second quarter of 2011?
84. For companies that provide quarterly reports, how is the fourth quarter
reported?
85. According to International Financial Reporting Standards (IFRS), all of the
following are part of minimum components of interim financial reporting
except
:
86. Which of the following is
false
with regard to accounting standards for
segment reporting according to International Financial Reporting Standards
(IFRS) and U.S. GAAP?
87. What is the major objective of segment reporting?
According to U.S. GAAP, the objective of segment reporting is to provide
information to help users of financial statements:
88. What is meant by the term:
disaggregated financial information
?
89. Why are quarterly financial statements required to be published for publicly
traded companies in the U.S.?
90. How does a company measure income tax expense to be reported in an
interim period?
