...Download Chapter 1 Multiple Choice: 1. Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States? a. Securities and Exchange Commission b. Financial Accounting Standards Board c. International Accounting Standards Committee d. Internal Revenue Service Answer 2. What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century? a. The Iliad b. Plato's Republic c. The Zenon papyri d. Pacioli’s work, Summa de Arithmetica Geometria Proportioni et Proportionalita, Answer 3. Who has been given credit or developing the double-entry system of bookkeeping? a. Francis Wheat b. Fra Luca Pacioli c. A. C. Littleton d. William Paton Answer 4. Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board? a. The independence of the members of the APB. The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues. b. The structure of the board. The largest eight public accounting firms (at that time) were automatically awarded one member, and there were usually five or six other public accountants on the APB. c. Harmonization. The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee. d. Response time. The emerging accounting problems were not being...
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...571 FIN Final Exam. Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm Answer: C Difficulty: Easy Type: Memorization 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. Answer: A Difficulty: Easy Type: Memorization 3. Increased productivity due to technology has A) increased corporations' reliance on debt for capital expansion needs. B) created larger asset values on the firm's historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. Answer: D Difficulty: Medium Type: Conceptual 4. Insider trading occurs when A) someone has information not available to the public which they use to profit from trading in stocks. B) corporate officers buy stock in their company. C) lawyers, investment bankers, and others buy common stock in companies represented by their firms. D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. Answer: A Difficulty: Medium Type: Memorization Chapter 2 Review of Accounting 5. When a firm's earnings are falling more rapidly than its stock...
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....................................................105 GOVERNMENT GRANTS ...........................................................................113 NON-CURRENT ASSETS HELD FOR SALE ..............................................123 INVESTMENT PROPERTY .........................................................................133 INTANGIBLES .............................................................................................145 IMPAIRMENT ..............................................................................................159 PROVISIONS AND CONTINGENCIES .......................................................171 TAXATION...................................................................................................185 LEASES.......................................................................................................201 EMPLOYEE BENEFITS...............................................................................223 EVENTS AFTER THE REPORTING PERIOD.............................................245 FOREIGN EXCHANGE...
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...Chapter 16 Discussion Questions |16-1. |Corporate debt has been expanding very dramatically in the last three decades. What has been the impact on interest | | |coverage, particularly since 1977? | | | | | |In 1977, the average U.S. manufacturing corporation had its interest covered almost eight times. By the early 2000’s,| | |the ratio had been cut in half. | | | | |16-2. |What are some specific features of bond agreements? | | | | | |The bond agreement specifies such basic items as the par value, the coupon rate, and the maturity date. | | | | |16-3. |What is...
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....................................................105 GOVERNMENT GRANTS ...........................................................................113 NON-CURRENT ASSETS HELD FOR SALE ..............................................123 INVESTMENT PROPERTY .........................................................................133 INTANGIBLES .............................................................................................145 IMPAIRMENT ..............................................................................................159 PROVISIONS AND CONTINGENCIES .......................................................171 TAXATION...................................................................................................185 LEASES.......................................................................................................201 EMPLOYEE BENEFITS...............................................................................223 EVENTS AFTER THE REPORTING PERIOD.............................................245 FOREIGN EXCHANGE...
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...CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | Concepts for | |Topics |Questions | |Exercises |Problems |Analysis | |*1. Rationale for leasing. |1, 2, 4 | | | |1, 2 | |*2. Lessees; classification |3, 5, 7, |1, 2, 3, |1, 2, 3, |1, 2, 3, 4, |1, 2, 3, | |of leases; accounting by lessees. |8, 14 |4, 5 |5, 7, 8, 11, 12, |6, 7, 8, 9, 11, 12,|4, 5, 6 | | | | |13, 14 |14, | | | | | | |15, 16 | | |*3. Disclosure of leases. |19 | | |2, 4, 5, |2, 3, 5 | | | | | |7, 8 | | |*4. Lessors; classification ...
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...CHAPTER 6 TIME VALUE OF MONEY (Difficulty: E = Easy, M = Medium, and T = Tough) Multiple Choice: Conceptual Easy: PV and discount rate 1. Answer: a Diff: E You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows? a. The discount rate decreases. b. The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same. c. The discount rate increases. d. Statements b and c are correct. e. Statements a and b are correct. Time value concepts 2. Which of the following statements is most correct? a. A 5-year $100 annuity due will have a higher present value than a 5-year $100 ordinary annuity. b. A 15-year mortgage will have larger monthly payments than a 30-year mortgage of the same amount and same interest rate. c. If an investment pays 10 percent interest compounded annually, its effective rate will also be 10 percent. d. Statements a and c are correct. e. All of the statements above are correct. Time value concepts 3. Answer: d Diff: E Answer: e Diff: E The future value of a lump sum at the end of five years is $1,000. The nominal interest rate is 10 percent and interest is compounded semiannually. Which of the following statements is most correct? a. The present value of the $1,000 is greater if interest is compounded monthly rather than...
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...ACCT 202 - PRE-QUIZ #2 (Chapter 15) PROFESSOR FARINA Student: ___________________________________________________________________________ 1. Capital leases are agreements that are formulated outwardly as leases, but are installment purchases in substance. True False 2. The criterion of 75% of economic life for classifying a lease as a capital lease is consistent with the basic premise that most of the risks and rewards of ownership occur during the first 75% of an asset's life. True False 3. In accounting for operating leases, the lessor, rather than the lessee, will recognize depreciation on the leased asset. True False 4. In addition to the criteria that must be met by the lessee, the lessor must meet additional conditions for classification as a nonoperating lease to satisfy the realization principle. True False 5. When accounting for a nonoperating lease, the lessee records the leased asset at the present value of the minimum lease payments or the asset's fair value, whichever is lower. True False 6. If the lessee is expected to take ownership of a leased asset at the end of the lease term, the lessor must use an estimated residual value when calculating the lease payments necessary to achieve a desired rate of return. True False 7. A bargain purchase option is defined as the option of purchasing leased property at a price that is equal to the expected fair value of a leased asset. True False 8...
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...CHAPTER 16 Long-Term Liabilities ASSIGNMENT CLASSIFICATION TABLE | | |Brief Exercises | |Problems |Problems | |Study Objectives |Questions | |Exercises |Set A |Set B | |Describe the advantages and illustrate the impact |1, 2, 3, 4, 5, 6 |1 |1 | | | |of issuing bonds instead of common shares. | | | | | | |Prepare the entries for the issue of bonds and the|7, 8, 9, 10, 11, 12 |2, 3, 4, 5, 6, 7 |2, 3, 4, 7, 8 |1, 2, 3, 5, 6 |1, 2, 3, 5, 6 | |recording of interest expense. | | | | | | |Contrast the effects of the straight-line and |13, 14 |7, 8 |5, 6 |4, 5 |4, 5 | |effective interest methods of amortizing bond | | | | | | |discounts and premiums. | | | | | | |Prepare the entries...
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...CHAPTER 18 REPORTS ON AUDITED FINANCIAL STATEMENTS Answers to Review Questions 18-1 An auditor is associated with financial statements when he or she has consented to the use of his or her name in a document such as an annual report. 18-2 Accounting changes can be categorized into changes that affect consistency and those that do not affect consistency. The word “consistency” refers to the application of accounting principles. If a change in accounting principle or in the method of its application has a material effect on the comparability and consistency of the financial statements and the auditor concurs with the change, the auditor should refer to the change in an explanatory or emphasis-of-matter paragraph. Accounting changes that affect comparability but do not affect consistency, such as a change in an estimate or the correction of an error that does not involve a change in accounting principle, are normally disclosed in the footnotes to the financial statements but do not require an explanatory or emphasis-of-matter paragraph in the auditor's report. An accounting change can affect comparability but not consistency because an accounting principle can be consistently applied even when the underlying data used to apply it may change. For example, when the estimate of the useful life of a building changes, the company may still consistently apply straight-line depreciation, but the depreciation expense will not be comparable to that of the previous year due to the...
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...Instructor’s Manual Fundamentals of Financial Management twelfth edition James C. Van Horne John M. Wachowicz JR. ISBN 0 273 68514 7 Pearson Education Limited 2005 Lecturers adopting the main text are permitted to photocopy the book as required. © Pearson Education Limited 2005 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Previous editions published under the Prentice-Hall imprint Twelfth edition published under the Financial Times Prentice Hall imprint 2005 © 2001, 1998 by Prentice-Hall, Inc. © Pearson Education Limited 2005 The rights of James C. Van Horne and John M. Wachowicz JR. to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patent Act 1988. ISBN: 0 273 68514 7 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road...
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...Instructor’s Manual Fundamentals of Financial Management twelfth edition James C. Van Horne John M. Wachowicz JR. ISBN 0 273 68514 7 Pearson Education Limited 2005 Lecturers adopting the main text are permitted to photocopy the book as required. © Pearson Education Limited 2005 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Previous editions published under the Prentice-Hall imprint Twelfth edition published under the Financial Times Prentice Hall imprint 2005 © 2001, 1998 by Prentice-Hall, Inc. © Pearson Education Limited 2005 The rights of James C. Van Horne and John M. Wachowicz JR. to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patent Act 1988. ISBN: 0 273 68514 7 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road...
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...Instructor’s Manual Fundamentals of Financial Management twelfth edition James C. Van Horne John M. Wachowicz JR. ISBN 0 273 68514 7 Pearson Education Limited 2005 Lecturers adopting the main text are permitted to photocopy the book as required. © Pearson Education Limited 2005 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Previous editions published under the Prentice-Hall imprint Twelfth edition published under the Financial Times Prentice Hall imprint 2005 © 2001, 1998 by Prentice-Hall, Inc. © Pearson Education Limited 2005 The rights of James C. Van Horne and John M. Wachowicz JR. to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patent Act 1988. ISBN: 0 273 68514 7 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road...
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...SCHAUM’S OUTLINE OF THEORY AND PROBLEMS OF INTERMEDIATE ACCOUNTING II Second Edition BARUCH ENGLARD, M.S., M.B.A., CPA Associate Professor of Accounting The College of Staten Island The City University of New York SCHAUM’S OUTLINE SERIES New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2007, 1992 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-151048-6 The material in this eBook also appears in the print version of this title: 0-07-146974-5. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069. TERMS OF...
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...CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | |Topics |Questions | |Exercises |Problems | | 1. |Present value concepts. |1, 2, 3, 4, | | | | | | |5, 9, 17 | | | | | 2. |Use of tables. |13, 14 |8 |1 | | | 3. |Present and future value problems: | | | | | | |a. Unknown future amount. |7, 19 |1, 5, 13 |2, 3, 4, 7 | | | |b. Unknown payments. |10, 11, 12 |6, 12, |8, 16, 17 |2, 6 | | | | |15, 17 | | | | ...
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