This document provides the questions and multiple choice answers to the ACC 422 Final Exam. It includes 41 multiple choice questions covering topics like cash, accounts receivable, inventory valuation methods, long-term assets, depreciation, intangible assets, and goodwill. The questions assess understanding of accounting concepts related to preparing financial statements.
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
ACC 422 Final Exam Answers
ACC/422 FINAL EXAM
1) Which of the following is NOT considered cash for financial reporting
purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.’s
2) What is the preferable presentation of accounts receivable from officers,
employees, or affiliated companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current
assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable
from customers, then sales discounts taken should be reported as
A. an item of ̶
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The European Unemployment Puzzle: implications from population aging
ACC 422 ACC/422 Final Exam 100% Correct
1. ACC 422 Final Exam
ANSWERS ARE HERE
1) Which of the following is NOT considered cash for financial reporting purposes?
A. Coin, currency, and available funds
B. Money orders, certified checks, and personal checks
C. Petty cash funds and change funds
D. Postdated checks and I.O.U.'s
2) What is the preferable presentation of accounts receivable from officers, employees, or affiliated
companies on a balance sheet?
A. As assets but separately from other receivables.
B. As offsets to capital.
C. As trade notes and accounts receivable if they otherwise qualify as current assets.
D. By means of footnotes only.
3) Which of the following is considered cash?
A. Money market savings certificates
B. Certificates of deposit (CDs)
C. Postdated checks
D. Money market checking accounts
4) If a company employs the gross method of recording accounts receivable from customers, then sales
discounts taken should be reported as
A. an item of "other expense" in the income statement
B. a deduction from accounts receivable in determining the net realizable value of accounts receivable
C. a deduction from sales in the income statement
D. sales discounts forfeited in the cost of goods sold section of the income statement
5) Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted
value of the cash to be received in the future, failure to follow this practice usually does NOT make the
balance sheet misleading because
A. the allowance for uncollectible accounts includes a discount element
2. B. the amount of the discount is NOT material
C. most short-term receivables are NOT interest-bearing
D. most receivables can be sold to a bank or factor
6) Which of the following methods of determining annual bad debt expense best achieves the matching
concept?
A. Direct write-off
B. Percentage of average accounts receivable
C. Percentage of ending accounts receivable
D. Percentage of sales
7) The accountant for the Orion Sales Company is preparing the income statement for 2007 and the
balance sheet at December 31, 2007. Orion uses the periodic inventory system. The January 1, 2007
merchandise inventory balance will appear
A. as an addition in the cost of goods sold section of the income statement and as a current asset on the
balance sheet
B. only as an asset on the balance sheet
C. only in the cost of goods sold section of the income statement
D. as a deduction in the cost of goods sold section of the income statement and as a current asset on the
balance sheet
8) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in
inventory, but did NOT record the transaction. The effect of this on its financial statements for January
31 would be
A. net income, current assets, and retained earnings were understated
B. net income, current assets, and retained earnings were overstated
C. net income was correct and current assets were understated
D. net income and current assets were overstated and current liabilities were understated
9. If the beginning inventory for 2006 is overstated, the effects of this error on cost of goods sold for
2006, net income for 2006, and assets at December 31, 2007, respectively, are
A. understatement, overstatement, no effect
3. B. overstatement, understatement, overstatement
C. overstatement, understatement, no effect
D. understatement, overstatement, overstatement
10) Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of
goods sold computed when inventory is valued using the FIFO method exceeds cost of goods sold when
inventory is valued using the LIFO method?
A. Price trend cannot be determined from information given
B. Prices decreased
C. Prices remained unchanged
D. Prices increased
11) Which method of inventory pricing best approximates specific identification of the actual flow of
costs and units in most manufacturing situations?
A. Base stock
B. Average cost
C. First-in, first-out
D. Last-in, first-out
12) All of the following costs should be charged against revenue in the period in which costs are incurred
EXCEPT for
A. costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory
B. manufacturing overhead costs for a product manufactured and sold in the same accounting period
C. costs which will NOT benefit any future period
D. costs from idle manufacturing capacity resulting from an unexpected plant shutdown
13) In no case can "market" in the lower-of-cost-or-market rule be more than
A. estimated selling price in the ordinary course of business less reasonably predictable costs of
completion and disposal, an allowance for an approximately normal profit margin, and an adequate
reserve for possible future losses
B. estimated selling price in the ordinary course of business
4. C. estimated selling price in the ordinary course of business less reasonably predictable costs of
completion and disposal
D. estimated selling price in the ordinary course of business less reasonably predictable costs of
completion and disposal and an allowance for an approximately normal profit margin
14) When the direct method is used to record inventory at market
A. the market value figure for ending inventory is substituted for cost and the loss is buried in cost of
goods sold
B. there is a direct reduction in the selling price of the product that results in a loss being recorded on
the income statement prior to the sale
C. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on
inventory decline
D. only the portion of the loss attributable to inventory sold during the period is recorded in the
financial statements
15) An item of inventory purchased this period for $15.00 has been incorrectly written down to its
current replacement cost of $10.00. It sells during the following period for $30.00, its normal selling
price, with disposal costs of $3.00 and normal profit of $12.00. Which of the following statements is
NOT true?
A. Income of the following year will be understated
B. The cost of sales of the following year will be understated
C. The current year's income is understated
D. The closing inventory of the current year is understated
16) The retail inventory method is based on the assumption that the
A. proportions of markups and markdowns to selling price are the same
B. final inventory and the total of goods available for sale contain the same proportion of high-cost and
low-cost ratio goods
C. ratio of gross margin to sales is approximately the same each period
D. ratio of cost to retail changes at a constant rate
17) A major advantage of the retail inventory method is that it
5. A. provides a method for inventory control and facilitates determination of the periodic inventory for
certain types of companies
B. provides reliable results in cases where the distribution of items in the inventory is different from that
of items sold during the period
C. hides costs from competitors and customers
D. gives a more accurate statement of inventory costs than other methods
18) In 2006, Lucas Manufacturing signed a contract with a supplier to purchase raw materials in 2007 for
$700,000. Before the December 31, 2006 balance sheet date, the market price for these materials
dropped to $510,000. The journal entry to record this situation at December 31, 2006 will result in a
credit that should be reported
A. on the income statement
B. as a valuation account to Inventory on the balance sheet
C. as a current liability
D. as an appropriation of retained earnings
19) The cost of land typically includes the purchase price and all of the following costs EXCEPT
A. assumption of any liens or mortgages on the property
B. grading, filling, draining, and clearing costs
C. street lights, sewers, and drainage systems cost
D. private driveways and parking lots
20) Cotton Hotel Corporation recently purchased Holiday Hotel and the land on which it is located with
the plan to tear down the Holiday Hotel and build a new luxury hotel on the site. The cost of the Holiday
Hotel should be
A. capitalized as part of the cost of the new hotel
B. depreciated over the period from acquisition to the date the hotel is scheduled to be torn down
C. written off as an extraordinary loss in the year the hotel is torn down
D. capitalized as part of the cost of the land
21) If a corporation purchases a lot and building and subsequently tears down the building and uses the
property as a parking lot, the proper accounting treatment of the cost of the building would depend on
6. A. the intention of management for the property when the building was acquired
B. the length of time for which the building was held prior to its demolition
C. the significance of the cost allocated to the building in relation to the combined cost of the lot and
building
D. the contemplated future use of the parking lot
22) The period of time during which interest must be capitalized ends when
A. the activities that are necessary to get the asset ready for its intended use have begun
B. no further interest cost is being incurred
C. the asset is substantially complete and ready for its intended use
D. the asset is abandoned, sold, or fully depreciated
23) Which of the following assets do NOT qualify for capitalization of interest costs incurred during
construction of the assets?
A. Assets NOT currently undergoing the activities necessary to prepare them for their intended use
B. Assets intended for sale or lease that are produced as discrete projects
C. Assets under construction for an enterprise's own use
D. Assets financed through the issuance of long-term debt
24) When computing the amount of interest cost to be capitalized, the concept of "avoidable interest"
refers to
A. that portion of average accumulated expenditures on which no interest cost was incurred
B. a cost of capital charge for stockholders' equity
C. the total interest cost actually incurred
D. that portion of total interest cost which would NOT have been incurred if expenditures for asset
construction had NOT been made
25) The King-Kong Corporation exchanges one plant asset for a similar plant asset and gives cash in the
exchange. The exchange is NOT expected to cause a material change in the future cash flows for either
entity. If a gain on the disposal of the old asset is indicated, the gain will
A. be credited directly to the owner's capital account
7. B. effectively reduce the amount to be recorded as the cost of the new asset
C. be reported in the Other Revenues and Gains section of the income statement
D. effectively increase the amount to be recorded as the cost of the new asset
26) When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly
measured by the
A. market value of the stock
B. stated value of the stock
C. par value of the stock
D. book value of the stock
27) The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset and the
exchange has commercial substance is usually recorded at
A. either the fair value of the asset given up or the asset received, whichever one results in the largest
gain (smallest loss) to the company
B. the fair value of the asset given up, and a gain but NOT a loss may be recognized
C. the fair value of the asset given up, and a gain or loss is recognized
D. the fair value of the asset received if it is equally reliable as the fair value of the asset given up
28) Which of the following principles best describes the conceptual rationale for the methods of
matching depreciation expense with revenues?
A. Partial recognition
B. Systematic and rational allocation
C. Associating cause and effect
D. Immediate recognition
29) If an industrial firm uses the units-of-production method for computing depreciation on its only
plant asset, factory machinery, the credit to accumulated depreciation from period to period during the
life of the firm will
A. vary with production
B. vary with unit sales
8. C. be constant
D. vary with sales revenue
30) Which of the following most accurately reflects the concept of depreciation as used in accounting?
A. An accounting concept that allocates the portion of an asset used up during the year to the contra
asset account for the purpose of properly recording the fair market value of tangible assets
B. The process of allocating the cost of tangible assets to expense in a systematic and rational manner to
those periods expected to benefit from the use of the asset
C. The process of charging the decline in value of an economic resource to income in the period in which
the benefit occurred
D. A method of allocating asset cost to an expense account in a manner which closely matches the
physical deterioration of the tangible asset involved
31) Prentice Company purchased a depreciable asset for $200,000. The estimated salvage value is
$20,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation.
What is the depreciation base of this asset?
A. $200,000
B. $20,000
C. $18,000
D. $180,000
32) Harrison Company purchased a depreciable asset for $100,000. The estimated salvage value is
$10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation.
What is the depreciation base of this asset?
A. $100,000
B. $10,000
C. $9,000
D. $90,000
33) Starr Company purchased a depreciable asset for $150,000. The estimated salvage value is $10,000,
and the estimated useful life is 8 years. The double-declining balance method will be used for
depreciation. What is the depreciation expense for the second year on this asset?
A. $37,500
9. B. $26,250
C. $17,500
D. $28,125
34) Costs incurred internally to create intangibles are
A. capitalized
B. expensed only if they have a limited life
C. capitalized if they have an indefinite life
D. expensed as incurred
35) Factors considered in determining an intangible asset’s useful life include all of the following EXCEPT
A. the expected use of the asset
B. the amortization method used
C. any legal or contractual provisions that may limit the useful life
D. any provisions for renewal or extension of the asset’s legal life
36) The cost of purchasing patent rights for a product that might otherwise have seriously competed
with one of the purchaser's patented products should be
A. charged off in the current period
B. amortized over the remaining estimated life of the original patent covering the product whose market
would have been impaired by competition from the newly patented product
C. amortized over the legal life of the purchased patent
D. added to factory overhead and allocated to production of the purchaser's product
37) Malrom Manufacturing Company acquired a patent on a manufacturing process on January 1, 2006
for $10,000,000. It was expected to have a 10 year life and no residual value. Malrom uses straight-line
amortization for patents. On December 31, 2007, the expected future cash flows expected from the
patent were expected to be $800,000 per year for the next eight years. The present value of these cash
flows, discounted at Malrom’s market interest rate, is $4,800,000. At what amount should the patent be
carried on the December 31, 2007 balance sheet?
A. $10,000,000
10. B. $4,800,000
C. $8,000,000
D. $6,400,000
38) Mining Company acquired a patent on an oil extraction technique on January 1, 2006 for
$5,000,000. It was expected to have a 10 year life and no residual value. Mining uses straight-line
amortization for patents. On December 31, 2007, the expected future cash flows expected from the
patent were expected to be $600,000 per year for the next eight years. The present value of these cash
flows, discounted at Mining’s market interest rate, is $2,800,000. At what amount should the patent be
carried on the December 31, 2007 balance sheet?
A. $5,000,000
B. $2,800,000
C. $4,800,000
D. $4,000,000
39) General Products Company bought Special Products Division in 2006 and appropriately booked
$250,000 of goodwill related to the purchase. On December 31, 2007, the fair value of Special Products
Division is $2,000,000 and it is carried on General Product’s books for a total of $1,700,000, including
the goodwill. An analysis of Special Products Division’s assets indicates that goodwill of $200,000 exists
on December 31, 2007. What goodwill impairment should be recognized by General Products in 2007?
A. $0
B. $300,000
C. $200,000
D. $50,000
40) The intangible asset goodwill may be
A. capitalized only when purchased
B. written off directly to retained earnings
C. capitalized either when purchased or created internally
D. capitalized only when created internally
41) The reason goodwill is sometimes referred to as a master valuation account is because
11. A. it represents the purchase price of a business that is about to be sold
B. it is the only account in the financial statements that is based on value, all other accounts are
recorded at an amount other than their value
C. it is the difference between the fair market value of the net tangible and identifiable intangible assets
as compared with the purchase price of the acquired business
D. the value of a business is computed without consideration of goodwill and then goodwill is added to
arrive at a master valuation
42) Goodwill
A. generated internally should NOT be capitalized unless it is measured by an individual independent of
the enterprise involved
B. exists in any company that has earnings that differ from those of a competitor
C. is easily computed by assigning a value to the individual attributes that comprise its existence
D. represents a unique asset in that its value can be identified only with the business as a whole
43) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to
the financial statements describing this event should include all of the following information EXCEPT
A. a general description of the financing arrangement
B. the number of financing institutions that refused to refinance the debt, if any
C. the terms of the new obligation incurred or to be incurred
D. the terms of any equity security issued or to be issued
44) Stock dividends distributable should be classified on the
A. income statement as an expense
B. balance sheet as an item of stockholders' equity
C. balance sheet as an asset
D. balance sheet as a liability
45) Which of the following items is a current liability?
A. Bonds (for which there is an adequate sinking fund properly classified as a long-term investment) due
in three months
12. B. Bonds to be refunded when due in eight months, there being no doubt about the marketability of the
refunding issue
C. Bonds due in three years
D. Bonds (for which there is an adequate appropriation of retained earnings) due in eleven months.
46) A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2007.
Historically, 10% of customers mail in the rebate form. During 2007, 4,000,000 packages of light bulbs
are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability,
respectively, shown on the 2007 financial statements dated December 31?
A. $400,000; $400,000
B. $140,000; $260,000
C. $400,000; $260,000
D. $260,000; $260,000
47) A company offers a cash rebate of $1 on each $4 package of batteries sold during 2007. Historically,
10% of customers mail in the rebate form. During 2007, 6,000,000 packages of batteries are sold, and
210,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively,
shown on the 2007 financial statements dated December 31?
A. $600,000; $600,000
B. $210,000; $390,000
C. $600,000; $390,000
D. $390,000; $390,000
48) A company buys an oil rig for $1,000,000 on January 1, 2007. The life of the rig is 10 years and the
expected cost to dismantle the rig at the end of 10 years is $200,000 (present value at 10% is $77,110).
10% is an appropriate interest rate for this company. What expense should be recorded for 2007 as a
result of these events?
A. Depreciation expense of $120,000
B. Depreciation expense of $100,000 and interest expense of $7,711
C. Depreciation expense of $100,000 and interest expense of $20,000
D. Depreciation expense of $107,710 and interest expense of $7,711
49) A contingency can be accrued when
13. A. it is certain that funds are available to settle the disputed amount
B. an asset may have been impaired
C. the amount of the loss can be reasonably estimated and it is probable that an asset has been
impaired or a liability incurred
D. it is probable that an asset has been impaired or a liability incurred even though the amount of the
loss cannot be reasonably estimated
50) Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad.
On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and
burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small
parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad
may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has
sustained from the fire. Ward appears inclined to accept the Railroad's offer. The Railroad's 2007
financial statements should include the following related to the incident:
A. recognition of a loss and creation of a liability for the value of the land
B. recognition of a loss only
C. creation of a liability only
D. disclosure in note form only
51) Which of the following contingencies need NOT be disclosed in the financial statements or the notes
thereto?
A. Probable losses NOT reasonably estimable
B. Environmental liabilities that cannot be reasonably estimated
C. Guarantees of indebtedness of others
D. All of these must be disclosed
52) The covenants and other terms of the agreement between the issuer of bonds and the lender are
set forth in the
A. bond indenture
B. bond debenture
C. registered bond
D. bond coupon
14. 53) If bonds are issued initially at a premium and the effective-interest method of amortization is used,
interest expense in the earlier years will be
A. greater than if the straight-line method were used
B. greater than the amount of the interest payments
C. the same as if the straight-line method were used
D. less than if the straight-line method were used
54) Bonds that pay no interest unless the issuing company is profitable are called
A. collateral trust bonds
B. debenture bonds
C. revenue bonds
D. income bonds
55) Minimum lease payments may include a
A. penalty for failure to renew
B. bargain purchase option
C. guaranteed residual value
D. any of these
56) An essential element of a lease conveyance is that the
A. lessor conveys less than his or her total interest in the property
B. lessee provides a sinking fund equal to one year's lease payments
C. property that is the subject of the lease agreement must be held for sale by the lessor prior to the
drafting of the lease agreement
D. term of the lease is substantially equal to the economic life of the leased property
57) While only certain leases are currently accounted for as a sale or purchase, there is theoretic
justification for considering all leases to be sales or purchases. The principal reason that supports this
idea is that
A. [Answer Text]all leases are generally for the economic life of the property and the residual value of
the property at the end of the lease is minimal
15. B. at the end of the lease the property usually can be purchased by the lessee
C. a lease reflects the purchase or sale of a quantifiable right to the use of property
D. during the life of the lease the lessee can effectively treat the property as if it were owned by the
lessee
58) In the earlier years of a lease, from the lessee's perspective, the use of the
A. capital method will enable the lessee to report higher income, compared to the operating method.
B. capital method will cause debt to increase, compared to the operating method
C. operating method will cause income to decrease, compared to the capital method
D. operating method will cause debt to increase, compared to the capital method
59) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income
A. should be amortized over the period of the lease using the interest method
B. should be amortized over the period of the lease using the straight-line method
C. does NOT arise
D. should be recognized at the lease's expiration
60) In order to properly record a direct-financing lease, the lessor needs to know how to calculate the
lease receivable. The lease receivable in a direct-financing lease is best defined as
A. the amount of funds the lessor has tied up in the asset which is the subject of the direct-financing
lease
B. the difference between the lease payments receivable and the fair market value of the leased
property
C. the present value of minimum lease payments
D. the total book value of the asset less any accumulated depreciation recorded by the lessor prior to
the lease agreement