1-Proper financial statement disclosure for long term obligations would include:

a) A supporting schedule showing only the current amount as of the balance sheet date

b) A supporting schedule showing the 5 years following the latest balance sheet date

c) No disclosure is needed since the obligation is past the balance sheet date

D) No disclosure is needed since the obligation reflects a future benefit to the organization

2-A $500,000 bond issue sold for 98. Therefore, the bonds:

a) Sold at a discount which is recorded along with a debit to bond payable and a credit to cash.

b) Sold at a discount which is recorded along with a debit to cash and a credit to bond payable.

c) Sold at a premium which is recorded along with a debit to bonds payable and a credit to cash.

d) Sold at a premium which is recorded along with a debit to cash and a credit to bonds payable.

3- Which of the following would increase the employers periodic pension expense in the year the event occurs?

a) Amortization of net gains

b) Benefits paid to retirees

c) Expected return on plan assets

d)Service costs

4- Treasury stock will

a) Decrease stockholders equity

b) Have no effect on stockholders equity

c) Increase stockholders equity

d) Increase the par value of common stock while decreasing the value of preferred stock.

5- When calculating EPS stock dividends distributed in June are:

a) Calculated from June to the end of the year

b) Calculated from the beginning of the year until the distribution occurred

c)Calculated retrospectively

d) Not used for EPS calculations since they are not cash dividends

6- Four conditions need to occur for an accrual of sick pay for employees. Which is not one of the conditions?

a) The amount can be reasonable estimated

b) The benefit can be accumulated over time

c) The obligation is for service already performed

d) The payment is required to be made in the current year

7- Which of the following would not be an ethical dilemma?

a) A change in an accounting estimate that is accounted for prospectively

b) You find out that items included in year-end inventory are damaged and your supervisor tells you to correct the situation next year

c) You sell your receivables at the end of the year in an effort to generate cash and improve the cash flows statement.

d) Your company issues higher stock dividends due to cash flow problems and explains to the shareholders that it is in order to give them a better return.

8- An employee has worked for ABC Company for 10 years and is vested in the company's pension plan. The employee decided to leave ABC Company for a position at a competitor. ABC Company's position is that ethically the employee is not entitled to pension benefits since he is taking a position with a competitor. Which of the following is correct?

a) The employee will be able to receive pension benefits from ABC company when he leaves, there is no ethics violation.

b) The employee will be able to receive pension benefits from ABC Company because he is working for a competitor and that is an ethics violation

c) The employee will be able to receive pension benefits from ABC company because he is working for a competitor and is not yet 62 years olds which is normal retirement age

d) The employee will be able to receive pension benefits from ABC Company because he signed a non - compete clause when he was hired.