Acct410 test Study guides, Class notes & Summaries

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.

Which of the following are characteristics of a liability? 1 Are measured, recorded, and reported at their face amount. 2 The liability transaction must have already occurred. 3 The company has little or no discretion to avoid the future sacrifice of economic benefits. - ANSWER 2 and 3 On September 1, 2016, a company borrowed cash and signed a 1-year, interest-bearing note on which both the principal and interest are payable on September 1, 2017. How will the note payable and the related ...

The client began purchasing inventory from a major stockholder. - ANSWER increase The client changed insurance carriers because the rates were more favorable. - ANSWER no change Two members of the client's audit committee resigned. - ANSWER increase The client added to the staff of the internal auditors. - ANSWER decrease The client settled a major legal case involving a patent for one of its major products. - ANSWER decrease

CH4 - LO1: Understand that complete ownership is not a prerequisite for the formation of a business combination. - ANSWER n/a CH4 - LO2: Describe the valuation principles underlying the acquisition method of accounting for the noncontrolling interest. - ANSWER nj/a CH4 - LO3 Allocate goodwill acquired in a business combination across the controlling and noncontrolling interests. - ANSWER ... CH4 - LO4 Understand the computation and allocation of consolidated net income in the presence of ...

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

A penalty for failure to pay the tax due as shown on the return is imposed in the amount of 0.5% per month up to a maximum of 25% For failure to file a tax return by the due date, a penalty of _____ per month up to a maximum of _____ is imposed on the amount of tax shown as due on the return. Any fraction of a month counts as a full month. a. 7%; 35% b. 1%; 5% c. 4.5%; 13.5% d. 2.5%; 10% e. 5%; 25% - ANSWER e. 5%; 25%

s a legal document that specifies the face value, the annual interest rate, the maturity date, and other characteristics of the bond issue. - ANSWER bond certificate is a document (contract) that defines the rights of the bondholders. - ANSWER bond indenture are secured by a lien against specific assets - ANSWER mortgage bonds

The software system used to record purchases made by the company. - ANSWER information and communication systems Training procedures for new employees. - ANSWER control environment The hiring of a new CEO with a very different management style. - ANSWER risk assessment

How does the accounting treatment for downstream and upstream sales of inventory vary? - ANSWER For downstream transfers, the income from subsidiary will increase by the beginning inventory profits multiplied by the non-controlling interest percentage. On December 31 of the current year, ABC Corp sells $100,000 inventory to its 70% owned subsidiary Sun, Co. for $120,000. At the end of the year, all of the inventory is still on hand with Sun, Co. The consolidated working paper entry to eli...