Acct 550 Midterm Exam Solution

ACCT 550 Midterm Exam Solution

https://hwguiders.com/downloads/acct-550-midterm-exam-solution

ACCT 550 Midterm Exam Solution

Question 1. (TCO A) The Financial Accounting Standards Board employs a “due process” system, which?

Question 2. (TCO A) The cash method of accounting

Question 3. (TCO A) Which of the following is an ingredient of relevance?

Question 4. (TCO A) Information is neutral if it.

Question 5. (TCO A) Which of the following is not a basic element of financial statements?

Question 6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements?

Question 7. (TCO A) What is the quality of information that enables users to better forecast future operations?

Question 8. (TCO D) Balance sheet information is useful for all of the following except to

Question 9. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except

Question 10. (TCO A) The quality of information that gives assurance that is reasonably free of error and bias and is complete is

Question 1. (TCO D) The net assets of a business are equal to

Question 2. (TCO A) Why are some of the major differences between iGAAP and U.S. GAAP? Explain in detail.

Question 3. (TCO C) (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts.

Accounting and legal fees $150,000

Advertising $125,000

Freight-out $65,000

Interest $80,000

Loss on sale of long-term investments $35,000

Officers’ salaries $200,000

Rent for office space $160,000

Sales salaries and commissions $110,000

One half of the rented premises are occupied by the sales department.

How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X?

Question 4. (TCO C) An income statement shows “income before income...