ACCT 304 Intermediate Accounting I Week 8 Final Exam Answers
- (TCO 1) The FASB's standard-setting process includes, in the correct order, (Points : 6)
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(TCO 1) The International Accounting Standards Board (Points : 6)
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(TCO 2) The conceptual framework's qualitative characteristic of relevance includes (Points : 6)
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(TCO 2) Enhancing qualitative characteristics of accounting information include (Points : 6)
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(TCO 3) Incurring an expense for advertising on an account would be recorded by (Points : 6)
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(TCO 3) Accruals occur when cash flows (Points : 6)
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(TCO 4) Which of the following accounts is not a current asset account? (Points : 6)
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(TCO 4) Rent collected in advance is (Points : 6)
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(TCO 5) Popson Inc. incurred a material loss that was not unusual in character but was clearly an infrequent occurrence. This loss should be reported as (Points : 6)
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(TCO 5) On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2012. The following additional facts pertain to the transaction:
•The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations.
•The book value of Footwear's assets totaled $48 million on the date of the sale.
•Footwear's operating income was a pre-tax loss of $10 million in 2012.
•Foxtrot's income tax rate is 40%.
In the 2012 income statement for Foxtrot Co., which of the following would it would report? (Points : 6) -
(TCO 8) An argument against the use of LCM is its lack of (Points : 6)
