Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem 1: During fiscal year 2012, KhoiLeCo earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the given items would be raised by the municipal bond revenue?

a) Income Tax Expense
b) Income Tax Payable
c) Effective Tax Rate
d) Interest Revenue
e) Statutory Tax Rate

problem 2: At the end of December 2013, Copeland Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law to decrease the Federal Statutory Tax Rate from 35% to 20% on December 31, 2013. As a US company, Copeland had to instantly  adjust the balance of its DTAs based on the new law.

Which of the given items would be reduced by the entry to adjust the balance in Deferred Tax Assets?

a) Total Liabilities
b) Net Income
c) Cash from Investing Activities
d) Deferred Tax Assets
e) Accumulated Other Comprehensive Income

problem 3: Due to years of poor management, Carley Inc. had $350 million in Deferred Tax Assets due to NOL carryforwards in its various subsidiaries around the world. At the end of 2012, Carley had a Valuation Allowance of $280 million related to these DTAs. In January 2013, Carley hired Darren Kerr to take over the Liechtenstein subsidiary, which quickly returned to profitability. At the end of 2013, Carley decided that it was “more likely than not” that the Liechtenstein subsidiary would be profitable enough to use the NOLs in Liechtenstein by 2014 and made the appropriate adjustment to the Valuation Allowance.

Which of the given items would be raised by the adjustment to the Valuation Allowance?

a) Valuation Allowance
b) Income Tax Expense
c) Total Shareholders’ Equity
d) Total Assets
e) Total Liabilities

problem 4: On November 12, 2013, Omodiaogbe Ltd. repurchased 10,000 shares of its own stock at a price of $20 per share. Omodiaogbe had originally issued the stock in 2010 at a price of $15 per share.

Which of the given items would be reduced by the stock repurchase transaction?

a) Total Shareholders’ Equity
b) Loss on Repurchase
c) Total Liabilities
d) Cash from Investing Activities
e) Net Income

problem 5: On September 26, 2013, Ziadeh S.A. announced a 3-for-1 common stock split.

Which of the given items would be raised by the stock split?

a) Additional Paid in Capital
b) Shares Outstanding
c) Cash from Financing Activities
d) Total Assets
e) Total Shareholders’ Equity

problem 6:

On January 1, 2011, Aoki Ltd. granted its CEO, Eriko Aoki, 1,000 stock options with an exercise price of $30 per share as compensation. The options vest over 4-years and expire after 10 years. The stock price on the grant date was $30 and the fair value of the option grant was $10 per share. On December 31, 2012, Aoki Ltd. recorded a journal entry related to this option grant.

Which of the given items would be redced by the December 31, 2012 journal entry?

a) Net Income
b) Cash from Financing Activities
c) Cash from Operating Activities
d) Accumulated Other Comprehensive Income
e) Compensation Expense

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94650

Have any Question? 

Related Questions in Financial Accounting

Project preparing annual report documentsfor this 6-8 page

Project: Preparing Annual Report Documents For this 6-8 page Final Project (Not including the title page, abstract if included or reference page), you will create 1) the Financial Highlights, 2) the Presidents Letter to ...

Financial accounting assignmentprepare a 4 pages analytical

Financial Accounting Assignment Prepare a 4 pages analytical summary on ATT and Verizon Prepare two full pages for each part, four pages in total. Work Must be original, will be submitted in Turn It In. Label pages separ ...

Choose one of the following two assignments to complete

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Income Statement, Retained Earnings, and Balance ...

Nbspaccounting assignmentbelow are the balance sheet and

Accounting Assignment Below are the balance sheet and income statement for Happy Hamburger Company. Happy Hamburger Company Balance Sheet as of December 31, 20XX Assets Liabilities and Shareholder Equity Cash 78,000 Acco ...

Assignmenti structuring a keep-or-drop product line

Assignment: I. Structuring a Keep-or-Drop Product Line Problem Shown below is a segmented income statement for Orzo Company's three laminated flooring product lines:   Strip Plank Parquet Total Sales revenue $400,000 $20 ...

Outdoor furniture company has inventory balances at the end

Outdoor Furniture Company has inventory balances at the end of August as follows: Materials inventory $21,360 Work-in-Process inventory 15,112 Finished goods inventory 17,120 Job order cost cards for jobs in process at t ...

Assignmentcomprehensive receivables problem connecticut inc

Assignment (Comprehensive Receivables Problem) Connecticut Inc. had the following long-term receivable account balances at December 31, 2006. Note receivable from sale of division $1,800,000 Note receivable from officer ...

Assignmentjacksoncounty judges try thousands of cases per

Assignment JacksonCounty judges try thousands of cases per year. In an overwhelming majority of the cases disposed, the verdict stands as rendered. However, some cases are appealed, and of those appealed, some of the cas ...

Explain and analyze the external factors on or of

Explain and analyze the external factors on or of international business (e.g., political, legal, economics, culture, etc.) and how these may impact business.

1 describe the formal procedures associated with issuing

1. Describe the formal procedures associated with issuing long-term debt. 2. Describe the nature, type, and valuation of current liabilities. 3. Explain the accounting for different types of loss contingencies. 4. Explai ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro