Intermediate Accounting 2 package deal Exam questions and verified correct answers

The most common type of liability is: - correct answer One to be paid in cash and for which the amount and timing are known Which of the following is the BEST definition of a current liability? - correct answer An obligation expected to be satisfied with current assets or by the creation of...

The "treasury stock" method of calculating shares outstanding for diluted earnings per share is used when? A. bonds are converted to common stock B. preferred stock is converted to common stock C. stock options are exercisable D. treasury stock has been reissued - correct answer C. stock...

What is the primary purpose of the statement of cash flows? - correct answer To provide relevant information about the cash receipts and cash disbursements of a company. The information provided in the statement of cash flows can assist users to assess: - correct answer (1) A company's ability...

Intangible Assets - correct answer Lack of physical existence, Not financial instruments, Long-term Assets Common Types: Patents, Copy Rights, Franchises, Trademarks, Goodwill Valuation of Intangible Assets - correct answer Companies record at cost when purchased from another company. Cost inclu...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Conver...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Conver...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Conver...

Equity securities - correct answer are described as securities representing ownership interest such as common, preferred, or other capital stock. Page(s): 17-2, Study Guide to accompany Intermediate Accounting, Volume 2, 15th Edition by Donald E. Kieso, Wiley, John & Sons, Incorporated NOOK Stu...

long-term legal requirements - correct answer debit Loss on Settlement of Asset Retirement Obligation for $75000 - correct answer Lifeline Biofuels built an oil rig at a cost of $4.5 million. At the time that construction was complete, the company estimated the oil rig would have a useful life...

Companies use the _____ _____ method when converting bonds. - correct answer Companies use the BOOK VALUE method when converting bonds. Can a gain or loss be recognized upon conversion of a debt to equity? - correct answer No If the journal entry to convert Preferred Stock into Common Stock ...

Internal control is defined as a process, affected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in: 1. Effectiveness and efficiency of operations. 2. Reliability of financial advice 3. C...

Inventory is a current asset a. true b. false - correct answer a. true Manufacturing inventory includes: a. Raw Materials b. Work in Process c. Finished Goods d. all of the above - correct answer d. all of the above the Work in process & the finished goods have 3 cost components ...