For which type(s) of retirement plans are the retiree benefit amounts based on the market prices of the assets that are part of the plans?

Select one:

a.Both Defined Benefit and Defined Contribution

b.Neither Defined Benefit nor Defined Contribution

c.Defined Benefit, but not Defined Contribution

d.Defined Contribution, but not Defined Benefit

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Question2

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The Cinci Company announces a pension plan amendment on 1/1/19, resulting in extra retirement benefits applied retrospectively based on service years. Cinci's 1/1/19 journal entry will debit and credit (respectively) what accounts?

Select one:

a.PBO, OCI

b.OCI, Pension Expense

c.OCI, PBO

d.Pension Expense, PBO

e.Pension Expense, OCI

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Question3

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What is the difference between the projected benefit obligation (PBO) and the accumulated benefit obligation (ABO)?

Select one:

a.The PBO recognizes future salary increases, while the ABO does not.

b.The ABO recognizes future salary increases, while the PBO does not.

c.The PBO recognizes only obligations that have vested.

d.The ABO recognizes only obligations that have vested.

e.Only the name; the two concepts are identical.

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Idaho Company has a defined benefit retirement plan. The settlement rate is 10%. A plan amendment, which granted prior service benefits, occurred during 2015. Other data related to the pension plan for 2017 are:

The balance of the projected benefit obligation at December 31, 2017 is:

Select one:

a.$2,067,000

b.$2,079,000

c.$2,124,000

d.$1,887,000

e.$1,875,000

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Presented below is pension information related to Montana, Inc. for the year 2015:

The amount of pension expense to be reported for 2015 is:

Select one:

a.$168,000

b.$154,000

c.$158,000

d.$192,000

e.$144,000

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Pretty Company has the following information at December 31, 2018 related to its pension plan:

The amount of pension asset/liability on the December 31, 2018 balance sheet would be:

Select one:

a.Pension liability of $100,000

b.Pension liability of $400,000

c.Pension asset of $500,000

d.Pension asset of $200,000

e.Pension asset of $800,000

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For Oxford Corporation, year-end plan assets were $3,200,000. During the year, the actual return on plan assets was $210,000. Contributions to the fund were $150,000 and benefits paid were $140,000. Compute Oxford's beginning-of-the-year plan assets.

Select one:

a.$3,000,000

b.$3,280,000

c.$2,980,000

d.$3,420,000

e.$2,700,000

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Question8

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For a capital lease with no salvage value or bargain purchase option, the amount recorded initially by the lessee as the leased asset should normally:

Select one:

a.Exceed the total of the minimum lease payments.

b.Exceed the present value of the minimum lease payments at the beginning of the lease.

c.Equal the total of the minimum lease payments.

d.Equal the present value of the minimum lease payments at the beginning of the lease.

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The following information relates to the pension plan for the employees of Quinlan Co.:

The corridor for 2015 is:

Select one:

a.$459,000

b.$455,000

c.$520,000

d.$667,000

e.$574,000

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The following information relates to the pension plan for the employees of Blackheath Co.:

The average remaining service life is 14 years.

The amount of net loss amortized and charged to pension expense in 2014 is:

Select one:

a.$0

b.$214

c.$7,857

d.$3,429

e.$10,571

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In accounting for long-term construction-type contracts, gross profit recognized under the percentage-of-completion method is recorded in:

Select one:

a.Deferred Gross Profit

b.Construction in Progress

c.Billings

d.Accounts Receivable

e.Revenue

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Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2016, a single long-term project was begun, which continued through 2018. Information on the project follows:

Profit recognized from the long-term construction contract in 2017 was:

Select one:

a.$108,000

b.$130,000

c.$120,000

d.$272,000

e.$37,000

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The Leto Construction Company began work on a $15,000 contract on 1/1/15. Planned completion was in 2017. The Percentage-of Completion method is used.

The balance sheet location and the net amount of the 12/31/15 Combined CIP and Billings accounts are:

Select one:

a.Current Liability of $1,500

b.Current Liability of $200

c.Current Asset of $1,500

d.Current Liability of $875

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The Leto Construction Company began work on a $12,000 contract on 1/1/15. Planned completion was in 2017. The Percentage-of Completion method is used.

The 2016 Gross Profit recognized is:

Select one:

a.$100

b.$600

c.$340

d.$800

e.$1,500

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The Leverenz Construction Company began work on a $12,000 contract on 1/1/15. Planned completion was in 2017. The Percentage-of-Completion method is used.

2016 Net Income (Loss) is:

Select one:

a.$(641)

b.$(380)

c.$(260)

d.$239

e.$(1,380)

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Which is NOT included in the five-step process of revenue recognition?

Select one:

a.Allocate price to performance obligation

b.Identify performance obligation

c.Recognize revenue when performance obligation is probable

d.Identify contract with customer

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In revenue recognition, an allocation is needed if more than one performance obligation exists. This allocation is usually based on a weighted average of

Select one:

a.Market values

b.Present values

c.Book values

d.Contract Values

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In a four-column December proof of cash reconciling Bank to Book, which item would appear as an addition in columns two and four?

Select one:

a.December collection by bank

b.December deposit in transit

c.December service charge

d.December outstanding check

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Which statement is TRUE?

Select one:

a.At year-end, a journal entry to increase assets by the estimate of future inventory returns should be made

b.Inventory on consignment should be included in the consignee's inventory count until sold

c.For assurance-type warranties, warranty expense is allocated over the life of the warranty

d.For service-type warranties, warranty revenue is recorded in the year of the sale of the additional warranty

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Which statement is FALSE?

Select one:

a.Diluted EPS is never higher than Basic EPS

b.Use of the "Treasury Stock Method" determines the effect of convertible bonds on Diluted EPS

c.Bond interest expense is the cash interest paid plus the discount amortized that period

d.Bond interest expense is the cash interest paid less the premium amortized that period

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Which statement is false for both a property dividend and a stock dividend?

Select one:

a.Retained Earnings decreases

b.Par value per share decreases

c.Contributed capital increases

d.Total stockholders' equity does not change

e.Total stockholders' equity decreases

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On July 1, 2018, a firm issued $200,000 of 9% bonds. The bonds were dated May 1, 2018. Maturity date is 5/1/23. Interest is paid semi-annually on May 1 and November 1. Straight-line amortization is used. A total of $210,500 in cash was received, which included accrued interest. What appears as Interest Payable on the 12/31/18 balance sheet?

Select one:

a.$9,000

b.$6,000

c.$12,000

d.$3,000

e.$15,000

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The Shippecasse Company had a Current Ratio of 2:1. The Company declared a $10,000 cash dividend to preferred shareholders and immediately paid 70% of it. What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respectively?

Select one:

a.Increase, Increase

b.Decrease, Decrease

c.Increase, Decrease

d.No Effect, Increase

e.Decrease, No Effect

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Sweeney Co. began operations in 2017 and reported $225,000 in income before income taxes for the year. Sweeney's 2017 tax depreciation exceeded its book depreciation by $25,000. Sweeney also had 12/31/17 Accrued Revenues of $10,000. Sweeney's tax rate for 2017 was 35%, and the enacted rate for years after 2017 is 40%. In its December 31, 2017 balance sheet, what amount of income tax liability should Sweeney report?

Select one:

a.$66,500

b.$76,000

c.$80,500

d.$104,000

e.$72,500

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Trey, Inc. reports a taxable loss of $210,000 for 2017. Its taxable income for the last two years was as follows:

Trey has no temporary or permanent differences. Trey elects thecarrybackprovision. Trey expects taxable income in future years and has a tax rate of 30% for all periods affected. The amount that Trey, Inc. reports as a net loss for financial reporting purposes in 2017 is:

Select one:

a.$189,000 loss

b.$168,000 loss

c.$147,000 loss

d.$70,000 loss

e.$210,000 loss

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Indicate the type of Deferred Tax account created by Prepaid Expenses and Accrued Revenues, respectively.

Select one:

a.Asset, Asset

b.Liability, Liability

c.Asset, Liability

d.Liability, Asset

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Question27

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Deferred taxes should be presented on the balance sheet:

Select one:

a.as one net noncurrent amount.

b.in two amounts: one for the net current amount and one for the net noncurrent amount.

c.in two amounts: one for the net debit amount and one for the net credit amount.

d.as reductions of the related asset or liability accounts.

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Long Beach, Inc., a lessor, entered into a 6-year lease with Applewood Corp., the lessee, with an annual rental of $24,000, paid in monthly installments, but gave Applewood free rent for the first three months as an incentive to sign to lease, which was effective on July 1, 2015.In Applewood's income statement for the year ended June 30, 2016, rent expense should be

Select one:

a.$24,000

b.$23,000

c.$18,000

d.$25,000

e.$17,000

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A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment in year 10 applicable to lease liability should be:

Select one:

a.Less than in year 8

b.The same as in year 8

c.Less than in year 12

d.More than in year 12

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Question30

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A company uses the percentage-of-completion method to account for a 4-year construction contract. Which of the following should be used in the calculation of the income recognized in thefirstyear?

Select one:

a.Total Estimated Construction Cost, but not Contract Price

b.Contract Price, but not Total Estimated Construction Cost

c.Both Total Estimated Construction Cost and Contract Price

d.Neither Total Estimated Construction Cost nor Contract Price

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A company grants its executives stock options as a form of compensation. The company correctly determines the fair value of the options. During the expected period of benefit, the company records the complete journal entry relating to compensation expense. How does this journal entry affect Net Income and Total Stockholders' Equity, respectively?

Select one:

a.No Effect, Increase

b.No Effect, No Effect

c.Decrease, Increase

d.Decrease, Decrease

e.Decrease, No Effect

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If a previously profitable construction contract being accounted for with the percentage-of-completion method is later projected to be unprofitable, then the Net Loss in that period will be equal to:

Select one:

a.All previously recognized Gross Profit on the contract

b.The projected Net Loss on the entire contract

c.All previously recognized Gross Profit plus the percentage of completion times the projected Net Loss on the entire contract

d.All previously recognized Gross Profit on the contract plus the projected Net Loss on the entire contract

e.The projected Net Loss on the entire contract times the percentage of completion.

Question33

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Which accounts are closed at the end of an accounting period?

Select one:

a.Neither Interest Expense nor Paid-in-Capital from Stock Warrants

b.Both Interest Expense and Paid-in-Capital from Stock Warrants

c.Interest Expense, but not Paid-in-Capital from Stock Warrants

d.Paid-in-Capital from Stock Warrants, but not Interest Expense

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Given the following for the Williamsburg Company pension plan:

The 12/31/18 journal entry will include

Select one:

a.A $9,000 debit to OCI

b.A $200 debit to OCI

c.A $200 debit to Pension Expense

d.A $450 credit to Pension Expense

e.A $450 credit to OCI

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What is the most likely effect of a stock split on the par value per share and the number of shares outstanding, respectively?

Select one:

a.Decrease, Increase

b.Decrease, No Effect

c.No Effect, Increase

d.Increase, Increase

e.No Effect, No Effect