please give me the answer of these multiple choice questions 1. The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except (Points: 4) eliminate inconsistencies in conceptual guidance on revenues replace principle-based accounting with rule-based accounting for revenues establish a single comprehensive standard on revenue recognition fill voids in revenue recognition guidance2. Certain U.S. accounting standards have been, and will be, amended to aid in the international convergence process. The process of changing these standards usually involves (Points: 4) a short deliberation followed by a vote of the U.S. Congress acceptance of the change by the Internal Revenue Service rejecting all existing standards and developing an entirely new concept selecting the best standard between existing U.S. and international standards3. Conversion to IFRS reporting by all U.S. companies would be best accomplished with a transition plan for all of the following reasons except (Points: 4) it would have to be a multi-year process it needs to be an orderly process with a minimum of cost and disruption to the participants certain IFRS need further improvement through continued convergence efforts careful planning would enable maximum manipulation of the IFRS for the financial benefit of the United States.4. Which of the following are considered secondary characteristics of accounting information? (Points: 4) verifiability and feedback value predictive value and timeliness comparability and consistency representational faithfulness and neutrality5. Two constraints mentioned by GAAP on qualitative characteristics are (Points: 4) understandability and decision usefulness comparability and consistency relevance and reliability benefits greater than costs and materiality6. The IASB and FASB boards have agreed that the objective of general purpose financial reporting is to provide (Points: 4) financial information about a company that is useful to external users in making decisions in their capacity as capital providers mainly cash flow information about a company that is useful to external users in making decisions in their capacity as capital providers financial information about a company that is useful to internal users in making decisions in their capacity as capital custodians financial information about a company that is useful to government regulators in making decisions in their capacity as capital markets monitors7. The IASB and FASB joint boards feel that financial reporting should (Points: 4) be general purpose be useful in assessing a company?s future cash flows provide information on an accrual basis all of these are true8. The IASB and FASB joint boards have identified the primary user groups of financial information as all of the following except (Points: 4) equity investors labor groups lenders other creditors (capital providers)9. Similar to the constraints in the FASB?s qualitative characteristics, the joint IASB/FASB boards have identified two constraints including (Points: 4) benefits that justify the costs and consistency benefits that justify the costs and materiality consistency and materiality objectivity and materiality10. The joint IASB/FASB qualitative characteristics Exposure Draft identifies a logical order in which to evaluate the qualities. That order (first, second, third) is (Points: 4) faithful representation, relevance, enhancing characteristics relevance, enhancing characteristics, faithful representation relevance, faithful representation, enhancing characteristics enhancing characteristics, relevance, faithful representation11. When reconciling its accounts, Ajax Company found the accounts receivable general ledger account had a balance of $30,000, and the accounts receivable subsidiary ledger account balances totaled $28,000. The most likely reason for this difference was (Points: 4) a sale to a customer was recorded twice in the subsidiary ledger cash received from a customer was posted twice to the subsidiary ledger a sale to a customer was not posted to the general ledger cash received from a customer was recorded twice in the general ledger12. An organization will typically utilize a subsidiary ledger to (Points: 4) make sure all debits equal credits make it easier to handle cash received from customers keep customer accounts up to date record customer credit sales outside of the normal double entry system13. The total of the individual customer account balances should equal the balance in accounts receivable, which is the (Points: 4) control account master account nominal account contra account14. Which of the following transactions would be recorded in a sales journal of the type illustrated in the text? (Points: 4) customer return of merchandise originally bought on credit customer purchase of merchandise for cash sale by a used car dealer of part of the property surrounding his display lot customer purchase of merchandise on credit terms15. Marge Company has all of the special journals that were described in your text (other than the voucher register) as a part of its accounting system. Which of the following journal entries would therefore be recorded in Marge?s general journal? (Points: 4) an entry to record the sale of merchandise on credit an entry to record the sale of inventory on credit an entry to record the return of defective purchased merchandise for credit an entry to record a cash purchase of inventory16. Which statement is true? (Points: 4) All purchases should be recorded in a purchases journal. Closing and reversing entries will be found in the sales journal. Returned merchandise from a customer should be entered in the sales journal. All cash sales should be recorded in the cash receipts journal.17. Which statement is not true? (Points: 4) The general journal is still a necessity, even when special journals are used. If a cash payments journal is in use, postings are usually made only at the end of the month. All transactions involving the receipt of cash are recorded in the cash receipts journal. A purchase of a desk calculator for the office should not be recorded in the purchases journal.18. The Waller Company uses the accrual basis of accounting. Waller Company?s wages expense account had a $510,000 balance at the end of the year. The wages payable account had a $23,000 balance at the beginning of the year and a $45,000 balance at the end of the year. How much cash was paid for wages during the year? (Points: 4) $488,000 $510,000 $532,000 $555,00019. Which of the following is not included in comprehensive income? (Points: 4) net income unrealized gains in the fair market value of equipment foreign currency translation adjustments certain pension plan gains (losses) and prior service cost adjustments20. A reader might find information about gain contingencies in an annual report by examining (Points: 4) a contingent account receivable an accrued revenue a deferred revenue footnote disclosures21. GAAP requires that all derivative financial instruments be reported at their (Points: 4) historical cost fair value present value par value22. Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as (Points: 4) segment analysis significant relationships related-party transactions contingent activities23. Under international accounting standards, liabilities and owners? equity on the balance sheet usually appear in which order? (Points: 4) capital, noncurrent liabilities, and current liabilities current liabilities, noncurrent liabilities, and capital capital, current liabilities, and noncurrent liabilities noncurrent liabilities, current liabilities, and capital24. The SEC established integrated disclosures to (Points: 4) establish full disclosure demonstrate its legal authority to establish GAAP satisfy the form 10-K disclosure requirements control Management?s Discuss (check midcourse.net for the help you need)ion and Analysis25. When is a company not required to report comprehensive income? (Points: 4) when it has a net operating loss when it has no other comprehensive income items when it has no extraordinary items when it has no prior-period adjustments26. Which of the following is not an acceptable way of reporting a company?s comprehensive income? (Points: 4) on the face of the income statement in a separate statement of comprehensive income in the statement of changes in stockholders? equity in the statement of retained earnings27. A company is required to report earnings per share on Net Income Comprehensive Income (Points: 4) Yes Yes No No Yes No No Yes28. The statement of cash flows is least likely to help external users to assess (Points: 4) a company?s ability to generate positive future cash flows the amount of a company?s future accrual-based sales revenue a company?s ability to meet its obligations and pay dividends a company?s need for external financing29. Which of the following sections will not appear in the statement of cash flows? (Points: 4) operating activities investing activities financing activities selling activities30. Which of the following statements regarding a statement of cash flows is not true? (Points: 4) The most common method for reporting operating activities is the direct method. Operating activities include all transactions and other events related to the earnings process. It requires a reconciliation of beginning and ending cash balances. It helps users to assess a company?s need for external financing.31. Comprehensive income includes the following changes in equity in a company during a period except (Points: 4) transactions with non-owners events relating to non-owner sources circumstances relating to non-owner sources distributions to owners32. Characteristics of risk as they relate to the uncertainty or unpredictability of the future results of a company include (Points: 4) the greater the risk, the higher the rate of return expected by investors risk increases as the range and timeframe within which future results are likely to fall increases risk increases as the range and timeframe within which future results are likely to fall decreases the greater the risk, the higher the rate of return expected by creditors33. In 2007, the CFA Institute Centre for Financial Market Integrity proposed a new financial model to replace the traditional earnings number. Which of the following characteristics does the proposed statement of changes in net assets available to stockholders exclude? (Points: 4) It recognizes all transactions and events that change net assets. Line items would be reported by the nature of the item. Line items would be reported by the function for which the resource is consumed. It includes the effects of all investing and financing activities.34. The following information relates to the Smith Company: What is the unadjusted January 1, 2010, balance in retained earnings? (Points: 4) $1,170 $1,320 $1,470 $1,63035. IFRS reporting requires all of the following items except (Points: 4) earnings per share disclosure comprehensive income disclosure in a statement of stockholders? equity disclosure of the results of discontinued operations operating expenses disclosure36. Differences that currently exist between IFRS and U.S. GAAP with regard to the presentation of information on the income statement include all of the following except (Points: 4) different acceptable terminology relating to revenue items depreciation measures differ when equipment has been revalued different performance measures such as EBITDA are permitted under IFRS differences resulting because IFRS does not require the use of accrual accounting under the historical cost framework37. The Philip Company had the following information available for the fiscal year ended December 31, 2010: Philip?s inventory turnover for 2010 was (Points: 4) 3 times 4 times 5.33 times 6 times38. The following information was obtained from the records of Trophy Company for 2010: How many times was interest earned in 2010? (Points: 4) 1.25 times 1.75 times 2.75 times 32.5 times39. Monroe Company reported the following information for the year ended December 31, 2010: Monroe?s earnings per share for 2010 was (Points: 4) $6.67 $6.00 $5.11 $0.1540. Morgan Company reported the following information for the year ended December 31, 2010: Morgan?s 2010 price/earnings ratio was (Points: 4) 0.17 times 5.25 times 6.00 times 4.67 times(No information about Morgan company available)41. Full disclosure is desirable for all of the following reasons except (Points: 4) it helps to prevent the inappropriate use of insider information it helps financial markets to operate more efficiently it helps financial markets to operate more cost effectively it eliminates the need for financial analysis42. In the Management Report contained in the audited annual report, management acknowledges its responsibility for all of the following except (Points: 4) preparing and presenting the financial statements correcting all internal control deficiencies prior to issuance of the financial statements designing and maintaining appropriate internal controls evaluating the effectiveness of the internal controls43. A difference between the segment disclosures required by IFRS and GAAP is that (Points: 4) under GAAP, each segment?s liabilities must be disclosed under certain circumstances, while under IFRS, liabilities by segment need not be disclosed under IFRS, each segment?s cash balances must be disclosed under certain circumstances, while under GAAP, cash balances by segment need not be disclosed under IFRS, each segment?s total assets must be disclosed under certain circumstances, while under GAAP, total assets by segment need not be disclosed under IFRS, each segment?s liabilities must be disclosed under certain circumstances, while under GAAP, liabilities by segment need not be disclosed44. On September 1, 2010, the Baker Company received $44,940 from 4-Most Finance Company. To pay off this loan, the Baker Company will have to pay 4-Most $10,000 each year for 10 years. The first payment is due September 1, 2011. Which interest rate compounded annually is Baker paying on this loan? (Points: 4) 12% 15% 18% 24%45. In the present value of an annuity table, the factors (Points: 4) increase as the interest rates increase decrease as the periods increase remain the same as the periods increase decrease as the interest rates increase46. Paul?s Painting Co. acquired a new $800,000 press on April 1, 2010. Paul?s will make six equal payments based upon 8% compound interest, starting on March 31, 2011. How much will each payment be? (Points: 4) $504,136 $173,056 $160,234 $109,05247. An advantage of basing bad debt expense on the historical relationship between bad debts and net credit sales is that (Points: 4) it provides the best estimate of the net realizable value of accounts receivable it provides the best information to the credit department to use in its collection activities it best adheres to the matching concept it considers the balance in the allowance account when making the bad debt expense estimate48. When an uncollectible account is written off under the estimated bad debts method, it (Points: 4) decreases net income increases working capital increases the accounts receivable net realizable value leaves total assets unchanged49. Bad debt expense is normally reported on the income statement as a(n) (Points: 4) operating expense offset against gross sales financial expense in the other items section contra-revenue amount50. When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to (Points: 4) increase the net realizable value of accounts receivable reduce total expenses reduce total assets increase working capital Read more: 1. The purposes of the joint long-term projectCategory: essay
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