Acct4 - Study guides, Class notes & Summaries

ACCT417 Exam 1 Questions With Complete Solutions

ACCT460 Principles of Auditing final exam tips sample possible questions and answers 2024 Athabasca University

Proprietorship - ANSWER 1) one owner controlled 2) Tax advantages 3)unlimited liability for owner 4)relatively difficult to transfer ownership and raise new capital Partnership - ANSWER 1) shared owned control 2)Tax advantages 3)unlimited liability for owners 4)difficult to transfer ownership and raise capital

Bonds Payable Arise from a contract called a bond indenture -Represent a promise to pay the principle at maturity and periodic interest based on the stated interest rate and the face value of the bond Valuation of Bonds Payable PV of the principle and periodic interest (PV of FCF) -stated rate = effective/yield (par) -stated rate < effective (discount) -stated rate > effective (premium) Accounting for the Issuance of Bonds 1. Calculate PV (determine issue price) 2. Record bond i...

Proprietorship - ANSWER 1) one owner controlled 2) Tax advantages 3)unlimited liability for owner 4)relatively difficult to transfer ownership and raise new capital Partnership - ANSWER 1) shared owned control 2)Tax advantages 3)unlimited liability for owners 4)difficult to transfer ownership and raise capita

Question 1 1 / 1 pts An expense need not be recurring in order to be “ordinary.” True False Rationale: An expense is ordinary if it is normal, usual, or customary in the type of business conducted by the taxpayer and is not capital in nature. However, the expense need not be recurring to be deductible as ordinary. Question 2 1 / 1 pts Under the “one­year rule” for the current period deduction of prepaid expenses of cash basis taxpayers, the asset must expire or be consume...

Pension Plan - ANSWER Arrangement where an employer provides benefits to employees after they retire for services they provided while employed Defined Contribution Plan (401k) - ANSWER 1. Amount of contribution are known (defined), based on a formula determining employer match 2. NO promises regarding size of benefits received by retiree -investment risk is WITH employee

preventive control - ANSWER segregation of duties detective control - ANSWER A requirement to prepare bank reconciliations corrective control - ANSWER Maintaining backups of data segregation of duties is a control aimed at ____ misstatement - ANSWER preventing the requirement to ____ journal entries is an example of a preventive control - ANSWER approve

Ordinary, everyday decisions can carry significant tax implications. True or False - ANSWER True "Nothing is certain, except death and taxes" is a quote attributed to: a. John Adams. b. Thomas Jefferson. c. Oliver Wendell Holmes. d. Benjamin Franklin. e. George Washington. - ANSWER d. Benjamin Franklin.

Managerial accounting - ANSWER information for decision making, planning, and controlling an organization's operations (internal users) Primary role of managerial accounting - ANSWER Provide information for decision making and planning, Assist in directing and controlling activities, Motivate the business unit achieve established goals, measure/monitor performance of sub-units, managers, and efficiency/effectiveness of business processes, Assess the organization's competitive position an...