Finance And Accounting

Question: Which of the following methods of recording leases requires the lessee to amortize the leasehold over its useful life and recognize each lease payment as part payment of interest and part payment of principal?
A
Operating lease method

B
Capital lease method

C
Rental lease method

D
None of these

Note: Answer not sure
1. Report
Question: Given the following entry, how has the lessee accounted for the lease? Dr: Interest Expense Dr: Liability - Present value of lease obligation Cr: Cash
A
Sales type lease

B
Operating lease

C
Capital lease

D
None of these

Note: Answer not sure
1. Report
Question: The ownership percentage of voting stock of minority, active investments is usually ___________.
A
Zero to 20 percent

B
20 to 50 percent

C
Over 50 percent

D
100 percent

Note: Answer not sure
1. Report
Question: Which accounting treatment(s) for leases is/are favored by lessors and lessees?
A
Both generally prefer operating leases.

B
Both generally prefer capital leases.

C
Lessors prefer capital leases while lessees prefer operating leases.

D
Lessors prefer operating leases while lessees prefer capital leases.

Note: Answer not sure
1. Report
Question: Majority investments are generally reported _________________.
A
by preparing consolidated statements

B
by applying the equity method

C
in one-line presentations on the Balance Sheet (as investments)

D
by applying the market value method

Note: Answer not sure
1. Report
Question: XYZ Company has three securities in its portfolio available for sale, as follows: Security 1: Beatty, Cost: $78,000, 12/31/06 Market Value: $93,600, 12/31/07 Market Value:$100,100 Security 2: Cole, CoSt: $117,000, 12/31/06 Market Value: $120,900, 12/31/07 Market Value:$0 Security 3: Sells, Cost: $58,500, 12/31/06 Market Value: $53,500, 12/31/07 Market Value:$50,700 The Cole stock was sold in Year 2 for $127,400. Given the above information, which of the following statements is true?
A
On its 12/31 Year 2 Balance Sheet, XYZ Company would report the Beatty stock at its market value of $100,100.

B
On its Income Statement for the year ending 12/31 Year 2, XYZ would report an unrealized holding gain on the Beatty stock of $6,500.

C
On its 12/31 Year 2 Balance Sheet, XYZ Company would report an unrealized holding gain on the Beatty stock of $22,100 in a shareholders' equity account.

D
On its 12/31 Year 2 Balance Sheet, XYZ Company would report the Beatty stock at its market value of $100,100. and On its 12/31 Year 2 Balance Sheet, XYZ Company would report an unrealized holding gain on the Beatty stock of $22,100 in a shareholders' equity account.

Note: Answer not sure
1. Report
Question: The unrealized gain or loss on changes in the fair value of a _________________ remains on the Balance Sheet in a separate shareholders' equity account.
A
fair value hedge

B
a derivative that is not used to hedge some fair value or cash flow

C
cash flow hedge

D
None of these

Note: Answer not sure
1. Report
Question: In the _________________, the owner or lessor merely sells the rights to use the property to the lessee for a specified period.
A
operating lease method

B
capital lease method

C
owner lease method

D
buyer lease method

Note: Answer not sure
1. Report
Question: XYZ Company purchases a machine early in Year 1. For book purposes, XYZ Company uses straight-line depreciation. For tax purposes, the company follows ACRS. Excess depreciation for tax purposes in Year 1 is $36,000. Assume that a tax rate of 30 percent will apply in the future period of taxable income. For Year 2, excess depreciation for tax purposes is $18,000. In Year 2, XYZ Company reported a current liability for income taxes of $39,000. Given the above information, what amount of income tax expense did XYZ Company report on its Year 2 Income Statement?
A
$39,000

B
$44,400

C
$33,600

D
$49,800

Note: Answer not sure
1. Report
Question: On January 1 of Year 1, XYZ Company leases some equipment from ABC Supply under a four-year operating lease. Lease payments of $20,000 are payable at the end of each year. The first payment is due on December 31 of Year 1. Using an interest rate of 11 percent, the present value of the four payments is $62,000 on January 1 of Year 1. Given the above information, what expenses related to this lease would XYZ Company report on its Year 1 Income Statement?
A
Interest Expense of $6,820 and Depreciation Expense of $15,500

B
Rent Expense of $20,000

C
Interest Expense of $4,500 and Depreciation Expense of $15,500

D
Interest Expense of $6,820 and Depreciation Expense of $20,000

Note: Answer not sure
1. Report

First Prev 148 149 150 151 152 Next Last

Question: Which of the following methods of recording leases requires the lessee to amortize the leasehold over its useful life and recognize each lease payment as part payment of interest and part payment of principal?

Question: Given the following entry, how has the lessee accounted for the lease? Dr: Interest Expense Dr: Liability - Present value of lease obligation Cr: Cash

Question: The ownership percentage of voting stock of minority, active investments is usually ___________.

Question: Which accounting treatment(s) for leases is/are favored by lessors and lessees?

Question: Majority investments are generally reported _________________.

Question: The unrealized gain or loss on changes in the fair value of a _________________ remains on the Balance Sheet in a separate shareholders' equity account.

Question: In the _________________, the owner or lessor merely sells the rights to use the property to the lessee for a specified period.