Most importantly, they proposed to eliminate the requirement for stock option expensing of the five highest paid executives. However, they made it a point to require companies to explain the dilutive effect of stock options to investors in greater detail. Among the requirements, companies must include plain English explanations about how their specific compensation plans can alter the value of a share. In addition, the bill would require the SEC and secretary of state to regularly investigate and report on the effects of stock option compensation plans.
The bill gives companies the freedom to keep stock options out of expense reporting, but strengthens the reporting requirements delivered to investors to ensure that information is not hidden. What is the effect upon carrying value and earnings for each of the situations above?
Assume that these situations are unrelated. The carrying value will be based on the original cost of the asset, so if a balance sheet were prepared today, it would be based on the actual cost of the asset. In a volatile market, the fair value of securities can vary significantly, but it is the cost paid that is reported. Recent regulations allow for the account called Net Unrealized Holdings Gains and Losses to be debited for 4, and the accounting Fair Market Value to be credited by 4, Are you sure you want to restart your practice test?
You will lose all saved answers. What is the difference between accounting errors and fraud? A review of the accounts revealed two errors. What income should be recorded? When recording the adjusting entries for the year, James inadvertently skipped the entry for depreciation. What type of mistake is this? One way to temporarily balance an out-of-balance Trial Balance report is to use which of the following?
Double-entry bookkeeping can help prevent which of the following types of errors? What is the appropriate journal entry for a company's matching payment into a defined contribution plan? Corbin Company's president is trying to decide the best type of employee incentive program to implement to increase motivation with minimal cash outlay. Which of the following would you recommend, given that criteria?
What is the term for the various types of benefits or compensation provided to retired employees? Which of the following is the type of retirement plan that provides an employee with a set amount of benefit upon retiring?
Which of the following items are not deductible for corporate income tax purposes? Which of the following is an example of a permanent difference between accounting and tax income? Total revenue less total expenses excluding income tax is know as which of the following? What are earnings before income tax? Municipal bond interest, which is the interest earned on bonds issued by a city, state, or county, is recognized as revenue for GAAP purposes. How would this be handled for tax purposes?
Register Are you a student or a teacher? I am a student I am a teacher. Create an account today. Browse Browse by subject. Email us if you want to cancel for any reason. Start your FREE trial. What best describes you? Accumulated Amortization - Trademark Indicate the effect — Understated U , Overstated O , No Effect NE — that each of the errors for each independent situation has on net income and net income.
Wages payable wer not recorded at Dec. The wages were recorded when paid in Equipment purchased in was expensed c. Equipment purchased in was expensed d. Ending inventory at Dec. Patent amortization was not recorded in f.
Ending inventory not recorded Dec. Merchandise purchased in not recorded or counted ending inventory in and remained unsold as at Dec. Accrued interest on notes payable not recorded in and remained unsold as at Dec. Supplies on hand not counted at the end of Dec. Statement of Cash Flows 1. The following is Nale Corp. On December 31, Nale entered into a capital lease for an office building.
Nale follows IFRS, so the company has adopted the policy of classifying interest received and interest paid as operating cash flows. Nale declared and paid cash dividends as follows: Prepare a statement of cash flows for Nale Corp for the year ended December 31, , using the indirect method in good form always include proper disclosures.
Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense a Gain on sale of equipment b Equity in earnings of Tessila Ltd. Proceeds from sale of equipment Loan to Newcastle Corp.
Principal collected of loan receivable Net cash used by investing activities 32, , 37, Cash flows from financing activities: Non-cash investing and financing activities: During the year Nale Corp. Net Income of Tessila Ltd. Percentage owned by Nale Corp.
Undistributed earnings of Tessila Ltd. Comparative statements for Gardinia Ltd. Prepare a statement of cash flows using the direct method in good form always include proper disclosures and analyze the cash flow results. Does the company have any options regarding how it classifies interest and dividends paid on the cash flows statement?
Cash received from customers 1 Paid for goods and services 2 Paid to and on behalf of employees Interest paid Income taxes paid 3 Net cash provided by operating activities Cash flows from investing activities: Cash and cash equivalents: Cash and cash equivalents consist of cash on hand, account balances with banks and investments in Canada treasury bills with maturities of 60 days. Cash and cash equivalents included in the statement of cash flows comprise the following balance sheet accounts amounts in thousands of dollars: The net income has translated into a substantial increase in cash and cash equivalents by the year-end.
Gardinia Ltd was able to make significant investments in buildings and equipment without going further into debt. Shareholders were given stock dividends instead of cash dividends, allowing Gardinia Ltd to retain the cash for future investments or for improved liquidity. Under IFRS, interest paid and received and dividends received can be recognized as operating flows on the basis they are included in determining net income.
Alternatively, interest paid could be a financing outflow while interest and dividends received could be considered investment flows.
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Intermediate Accounting II (ACCT /) Winter, Exam 2 Solutions Question 1 (1) The proceeds from issuing $5,, of bonds on January 1, , with annual cash interest The final $, of the bonds mature on December 31, , six years from the date of issue.
View Notes - Intermediate Accounting Final Exam Solutions from ACCT at Baker College. Questi on 1 Which of the following does not have an effect on the cost-to-retail ratio when the lower of75%(8). ACCT Intermediate Financial Accounting II Practice Final Examination with Solutions Instructions: 1. This practice exam is intended to provide a sample of various learning concepts covered after the midterm exam.
Intermediate Accounting II Final Exam & Model Answer. By Dr. Hemeda Abdelmageed · Updated about 6 years ago. Already tagged. 1. Already tagged. 1. Other Albums. Cover Photos. 2 photos. 33 photos. Intermediate Accounting II امتحان التخلف. Acct - Intermediate Financial Accounting II. Warning: GAAP changes over the years and I have NOT made adjustments to the solutions attached to old exams. Exam 1, Acct Spring_ (pdf) (with solution - covers present value, troubled debt - creditors only, serial.