School Work

27 pages
494 views

Financial Reporting Financial Statement Analysis and Valuation 8th Edition Wahlen Test Bank

of 27
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Share
Description
Financial reporting financial statement analysis and valuation 8th edition wahlen test bank full download: https://goo.gl/yiYVUG people also search: financial reporting financial statement analysis and valuation 8e pdf financial reporting financial statement analysis and valuation answer key financial reporting financial statement analysis and valuation pdf financial reporting financial statement analysis and valuation 8th edition solution manual financial reporting financial statement analysis and valuation a strategic perspective pdf financial reporting financial statement analysis and valuation 7th edition pdf financial reporting financial statement analysis and valuation 8e solutions manual financial reporting financial statement analysis and valuation 8th edition test bank
Transcript
  Financial Reporting Financial Statement Analysis and Valuation 8th Edition Wahlen TEST BANK Full download: http://testbanklive.com/download/financial-reporting-financial-statement-analysis-and-valuation-8th-edition-wahlen-test-bank/ Financial Reporting Financial Statement Analysis and Valuation 8th Edition Wahlen SOLUTIONS MANUAL Full download: http://testbanklive.com/download/financial-reporting-financial-statement-analysis-and-valuation-8th-edition-wahlen-solutions-manual/  Chapter 2  —  Asset and Liability Valuation and Income Measurement   MULTIPLE CHOICE  1. Which of the following assets appears on the balance sheet at Historical cost? a. Equipment  b. Notes Payable c. Investments in Marketable Securities d. Accounts Payable ANS: A PTS: 1 2. Interest on Municipal Bonds represents what kind of tax difference? a. Permanent timing difference that results in that income item not being taxed.  b. Temporary difference that will reversed in the future c. Tax rate on Municipal bonds are based on estimated tax rates. d. Not recognized in taxable income on the accrual basis of accounting. ANS: A PTS: 1 3. Shareholders ’  equity consists of what three components: a. Assets, liabilities, and contributed capital.  b. Contributed capital, accumulated other comprehensive income, and retained earnings. c. Liabilities, contributed capital, and retained earnings. d. Liabilities, contributed capital, and accumulated other comprehensive income. ANS: B PTS: 1 4. Which of the following valuation methods reflects current values? a. acquisition cost  b. present value of cash flows using historical interest rates c. net realizable value d. adjusted acquisition cost ANS: C PTS: 1 5. The use of acquisition cost as a valuation method is justified on the basis that acquisition cost is: a. timely  b. relevant c. subjective d. objective ANS: D PTS: 1  6. Firms use acquisition cost valuations and adjusted acquisition cost valuations for which of the following types of assets? a. Assets that do not have fixed amounts of future cash flows.  b. Assets that have fixed amounts of future cash flows. c. Assets with certain future economic benefits. d. monetary ANS: A PTS: 1  7. The net amount a firm would receive if it sold an asset or the net amount it would pay to settle a liability is referred to as a. current replacement cost  b. net realizable value c. current cost d. acquisition cost ANS: B PTS: 1 8. Disregarding cash flows with owners, over sufficiently long periods of time, net income equals: a. revenues minus dividends and expenses  b. assets minus liabilities c. stockholder  s’  equity d. cash inflows minus cash outflows ANS: D PTS: 1 9. When income tax expense for a period is greater than income tax payable the difference will be reported how and on which financial statement? a. Deferred tax asset and Statement of Cash Flows  b. Deferred tax asset and Balance Sheet c. Deferred tax liability and Statement of Cash Flows d. Deferred tax liability and Balance Sheet ANS: D PTS: 1 10. Permanent tax differences are revenues and expenses a. that firms include in income tax returns, but do not appear in the income statement.  b. that are included in both the tax return and income statement, but in different accounting  periods. c. that firms include in the income statement, but do not appear in income tax returns. d. that are not included in either the tax return or the income statement. ANS: C PTS: 1 11. The traditional accounting model delays the recognition of value changes of assets and liabilities until what event occurs? a. A change in value.  b. A market transaction. c. A balance sheet date. d. Cash is received or cash is paid. ANS: B PTS: 1 12. Fish Farm Corporation purchases a new tract of land on which it is going to build new growing and holding tanks in order to expand its business. Which of the following costs would not  be part of the cost of the land? a. costs to run a title search  b. costs of grading to level the land c. costs of tearing down an existing structure d. cost of the new holding tanks ANS: D PTS: 1 13. Current replacement cost represents a. the amount a firm would have to pay currently to acquire an asset it now holds   b. the amount a firm would have to pay currently to acquire an asset it does not now hold c. the amount a firm would have to pay in the future to acquire an asset it now holds d. the amount a firm would have to pay to purchase a comparably depreciated version of the asset it now holds ANS: A PTS: 1 14. Which of the following is not one of methods used by GAAP for treating value changes? a. Recognize value changes on the balance sheet and income statement when they are realized in a market transaction  b. Recognize value changes in the income statement when the value changes occur over time,  but recognize them on the balance sheet when they are realized in a market transaction c. Recognize value changes on the balance sheet when the value changes occur over time, but recognize them in the income statement when they are realized in a market transaction d. Recognize value changes on the balance sheet and income statement when they occur over time, even though they are not realized in a market transaction ANS: B PTS: 1 15. Which of the following transactions is consistent with recognizing value changes on the balance sheet and income statement when they are realized in a market transaction? a. Selling land at a cost greater than its srcinal purchase price.  b. Recording an increase in the fair value of investments at year end. c. Translating foreign operations accounted for in Yen back to U.S. dollars in order to prepare consolidated financial statements. d. Writing down the value of an asset due to obsolescent. ANS: A PTS: 1 16. At srcination which of the following temporary differences would create a deferred tax asset? a. Tax basis of an asset exceeds its financial reporting basis.  b. Tax basis of a liability exceeds its financial reporting basis. c. Financial reporting basis of an asset is equal to its tax basis. d. Financial reporting basis of an asset exceeds its tax basis. ANS: A PTS: 1 17. Plaxo Corporation has a tax rate of 35% and uses the straight-line method of depreciation for its equipment, which has a useful life of four years. Tax legislation requires the company to depreciate its equipment using the following schedule: year 1- 50%, year 2 - 30%, year 3 - 15% and year 4 - 5%. In 2014 Plaxo purchases a piece of equipment with a four year life and an srcinal cost of $100,000. What amount will Plaxo record as a deferred tax asset or liability in 2010? a. Deferred tax asset of $25,000.  b. Deferred tax liability of $25,000. c. Deferred tax asset of $8,750. d. Deferred tax liability of $8,750. ANS: D PTS: 1 18. The income statement approach to measuring income tax expense a. is required by FASB Statement No. 109.  b. compares revenues and expenses recognized for book and tax purposes, eliminates  permanent differences, and computes income tax expense based on book income before taxes excluding permanent differences. c. computes income tax expense as a difference between the tax basis of an asset or a liability
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x