Intermediate Accounting I
Can someone help me with the below questions?
1. All of the following statements are true regarding common disclosure associated with long-term debt except::
| a. In disclosing details about long-term debt in the notes to the financial statements, the nature of the liabilities should be indicated. | | |
| b. In disclosing details about long-term debt in the notes to the financial statements, it is not necessary to disclose the portion of long-term debt coming due in the current period because that can be calculated from the balance sheet. | | |
| c. In disclosing details about long-term debt in the notes to the financial statements, the assets pledged should be indicated. | | |
| d. In disclosing details about long-term debt in the notes to the financial statements, the methods of liquidation should be indicated. | | |
2. An entity would be considered the primary beneficiary of a variable interest entity (VIE) if the entity
| a. holds an equity interest equal to 10% of the total assets of the VIE. | | |
| b. holds the largest voting interest in the VIE. | | |
| c. provides the majority of financial support when other parties are providing financial support to the VIE as well. | | |
| d. holds an equity interest equal to 20% of the total assets of the VIE. | |
3. On January 1, 2012, Wooten Company lent $17,800 cash to Singer Company. The promissory note made by Singer for $20,000 did not bear explicit interest and was due on December 31, 2014. No other rights or privileges were exchanged. The prevailing interest rate for a loan of this type was six percent. Assume that the present value of $1 for two periods at six percent is .89. Singer should recognize interest expense in 2012 of
4. If the financial risk associated with the research and development is transferred from the Company A to Company B and there is no obligation to them, the journal entry to be made by Company A will include a:
| a. credit to Accounts Payable | | |
| b. credit Research and Development Expense | | |
| c. a debit to Deferred Revenue | | |
| d. None of these because a liability does not need to be recorded by Company A. | |
5. Which of the following does not meet the FASB's definition of a liability?
| a. A note payable with no specified maturity date | | |
| b. An obligation to provide goods or services in the future | | |
| c. The signing of a three-year employment contract at a fixed annual salary | | |
| d. An obligation that is estimated in amount | |
6. Troubled debt restructuring can include concessions for all of the following except:
| a. periodic payments to bond retirement funds. | | |
| b. principal payments on installment obligations. | | |
| |
| d. concessions for all of these are possible. | | |
