STRAYER ACC499 midterm exam part 1 and part 2

• Question
1
4 out of 4 points

A lease will be treated as a
direct financing lease by the lessor when

• Question
2
4 out of 4 points

As a generalized statement
regarding lease accounting, which statement best describes U.S. versus
international accounting principles?

• Question
3
4 out of 4 points

When a lessor receives cash on an
operating lease, which of the following accounts is increased?

• Question
4
4 out of 4 points

Any initial direct costs incurred
by the lessor for a lease agreement that is classified as an operating lease
should be

• Question
5
4 out of 4 points

Lessee leased some land and
buildings from Lessor. There was no transfer of ownership and no bargain
purchase option. If the fair value of the land is less than a certain percentage
of the total fair value of the leased property at the inception of the lease,
both the lessee and the lessor may consider the land and buildings as a single
unit. What is that percentage?

• Question
6
4 out of 4 points

Which of the following facts
would require a lessee to classify a lease as a capital lease?

• Question
7
4 out of 4 points

Any initial direct costs incurred
by the lessor for a sales-type lease should be

• Question
8
4 out of 4 points

A direct financing lease differs
from a sales-type lease in that

• Question
9
4 out of 4 points

Which of the following is not a
required disclosure by a lessee of an operating lease?

• Question 10
4 out of 4 points

In a sales-type lease

• Question
11
4 out of 4 points

A capital lease should be
recorded in the lessee’s accounts at the inception of the lease in an amount
equal to

• Question
12
4 out of 4 points

On January 1, Lessor Company
incorrectly recorded a sales-type lease as an operating lease. As a result of
this error, the reported amount for Lessor Company’s property, plant, and
equipment leased to others is

• Question
13
4 out of 4 points

The authorized shares of capital
stock is the number of shares
• Question
14
4 out of 4 points

Under the cost method of
accounting for treasury stock transactions, when the proceeds from a sale are
greater than the cost, the excess over cost is treated as a(n)

• Question
15
4 out of 4 points

The measurement date of an
employee compensatory stock option plan under the intrinsic value method is

• Question
16
4 out of 4 points

Under the par value method of
accounting for treasury stock, the treasury stock is reported on the balance
sheet as a deduction from

• Question
17
4 out of 4 points

The corporate form of
organization is important to the U.S. economy because

• Question
18
4 out of 4 points

Which of the following types of
corporations is owned or operated by a government unit?

• Question
19
4 out of 4 points

Preferred stockholders share with
common stockholders in any “extra” dividends when the preferred stock
is

• Question
20
4 out of 4 points

Under the fair value method, the
grant date is the date

• Question
21
4 out of 4 points

A noncompensatory stock option
plan is designed to

• Question
22
4 out of 4 points

Dividends in arrears pertain to

• Question
23
4 out of 4 points

The preference to dividends that
preferred stockholders have is

• Question
24
4 out of 4 points

When stock options are exercised
by an employee under a compensatory stock option plan, the issuance of the
common stock is recorded at the

• Question
25
4 out of 4 points

Which set of accounting
principles directly uses the term “reserve”?

Part 2
• Question
1
4 out of 4 points

If the combined market value of
trading securities at the end of the year is less than the market value of the
same portfolio of trading securities at the beginning of the year, the
difference should be accounted for by

• Question
2
4 out of 4 points

Consolidated financial statements
are typically prepared when one company has

• Question
3
4 out of 4 points

U.S. GAAP and IFRS require firms
to account for minority, active investments, using the _____ method.

• Question
4
4 out of 4 points

U.S. GAAP view investments of
less than 20 percent of the voting stock of another company as

• Question
5
4 out of 4 points

Paula Company recognizes
unrealized changes in the fair value of available-for-sale securities in

• Question
6
4 out of 4 points

U.S. GAAP and IFRS require firms
to account for business combinations using the _____ method.

• Question
7
0 out of 4 points

Intercompany sales

• Question
8
4 out of 4 points

When an investor owns less than a
majority of the voting stock of another corporation, the accountant must judge
when the investor can exert significant influence. For the sake of uniformity,
U.S. GAAP and IFRS presume that significant influence exists at ownership of
_____ or more of the voting stock of the investee. (Assume that management does not have a
contractual or other basis to demonstrate that influence.)

• Question
9
4 out of 4 points

Accountants sometimes refer to
the equity method as a(n)

• Question
10
4 out of 4 points

Minority, passive investments are
initially recorded at the

• Question
11
4 out of 4 points

U.S. GAAP view investments of
between 20 and 50 percent of the voting stock of another company (unless
evidence indicates that significant influence cannot be exercised) as

• Question
12
4 out of 4 points

Often, the parent does not own
100% of the voting stock of a consolidated subsidiary. The parent refers to the
owners of the remaining shares of voting stock as a

• Question
13
0 out of 4 points

Which is the primary concern over
the adoption of IFRS?

• Question
14
0 out of 4 points

Which is one of the FASB/IASB
convergence projects?

• Question
15
4 out of 4 points

Which is one of the key
activities that will lead to a company’s successful IFRS conversion?

• Question
16
0 out of 4 points

Which is one criterion of SMEs?

• Question
17
4 out of 4 points

Which of the following are
differences between U.S. GAAP and IFRS?
• Question
18
4 out of 4 points

What is the appropriate reason
why people object to adopting the roadmap?

• Question
19
4 out of 4 points

Which one is not a characteristic
of rules-based standards?

• Question
20
4 out of 4 points

Which international organization
began the movement toward international accounting standards?

• Question
21
4 out of 4 points

Which are two conditions that
must be met before revenue is to be recognized under IFRS?

• Question
22
4 out of 4 points

What is the correct order of
steps in applying the revenue recognition model?
(1) Identify the separate performance obligations in the
contract
(2) Identify the contract with the customer
(3) Determine the transaction price for the entire contract
(4) Recognize revenue when each separate performance
obligation is satisfied
(5) Allocate the transaction price to separate performance
obligation

• Question
23
4 out of 4 points

What is the major difference
between how U.S GAAP and IFRS handle share-based payments?
• Question
24
4 out of 4 points

When the revaluation results in
an increase, a debit is made to the asset account, which account does the
revaluation surplus go?

• Question
25
4 out of 4 points

Which of the following is
included in full IFRS but eliminated for SMEs’ IFRS?