Course Introduction
Corporate Accounting
Textbook Exam Questions
Corporate Accounting explores the principles, techniques, and regulatory frameworks underlying the financial accounting and reporting of corporations. The course covers topics such as the preparation of company financial statements, accounting for share capital, debentures, mergers and acquisitions, internal reconstruction, and the analysis of published financial reports. Emphasis is placed on compliance with accounting standards and relevant legal requirements, equipping students with the skills to interpret, analyze, and communicate corporate financial information for various stakeholders.
Recommended Textbook
Intermediate Accounting 6th Edition Volume 1 by Thomas H. Beechy
Available Study Resources on Quizplus
10 Chapters
1408 Verified Questions
1408 Flashcards
Source URL: https://quizplus.com/study-set/3044
Page 2
Chapter 1: The Framework for Financial Reporting
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/60490
Sample Questions
Q1) An organization that has not published financial accounting standards is the:
A)Institute of Chartered Accountants.
B)Certified Management Accountants of Canada.
C)International Accounting Standards Committee.
D)Emerging Issues Committee.
Answer: B
Q2) The various provincial securities commissions do not exert influence on the development of accounting standards.
A)True
B)False Answer: False
Q3) In North America,the principal stakeholder to whom general-purpose financial statements are geared is the shareholder.
A)True
B)False
Answer: True
Q4) The CICA Handbook is the most important primary source of GAAP.
A)True
B)False
Answer: True
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Accounting Judgements
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/60487
Sample Questions
Q1) Financial information exhibits the characteristic of consistency when A)Expenses are reported as charges against revenue in the period in which they are paid.
B)Accounting entities give "accountable" events the same accounting treatment from period to period.
C)Unusual or infrequent gains and losses are not included on the income statement.
D)accounting procedures are adopted which give a consistent rate of net income.
Answer: B
Q2) In classifying the elements of financial statements,the primary distinction between revenues and gains is the materiality of the amounts involved.
A)True
B)False
Answer: False
Q3) The going concern principal does not apply if a company is expected to be liquidated in the next 24 months.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Statements of Income and Comprehensive Income
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/60486
Sample Questions
Q1) During the current period,Canada Revenue Agency assessed a firm a nonrecurring income tax amount (but not a penalty) as a result of a Tax Court case involving a disputed deduction from a prior year (the firm lost the case).This amount should be reported by the firm as a (n):
A)Correction of period years' errors.
B)Extraordinary loss.
C)Expense or loss of the current period.
D)Direct adjustment to owner's equity.
Answer: C
Q2) A company had 70,000 shares of common stock outstanding throughout the year.Income before taxes and extraordinary items was $166,000.The tax rate was 40 percent.EPS for net income is:
A)$1.20
B)$1.42
C)$2.00
D)$2.37
Answer: B
Q3) Basic and diluted Earnings per share figures must be disclosed under both ASPE and IFRS.
Answer: FAL SE
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Statements of Financial Position and Changes in
Equity; Disclosure Notes
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/60485
Sample Questions
Q1) Gain contingencies,which are remote and can be reasonably estimated:
A)Must be disclosed in a note to the financial statements.
B)May be disclosed in a note to the financial statements.
C)Must be reported in the body of the financial statements.
D)Should not be reported or disclosed.
Q2) Define liability without using the word "liability".
Q3) On December 31,a corporation had a working capital ratio of 2,and reported the following accounts. Therefore,the balance in the allowance for doubtful accounts was:
A)$600
B)$300
C)$200
D)$-0-
Q4) Which of the following loss contingencies ordinarily will NOT be accrued as liabilities?
A)Pending lawsuits whose outcome is uncertain.
B)Guarantees of indebtedness of others.
C)Disputes over additional income taxes for prior years.
D)None of these will be accrued.
Q5) Define current assets without using the word "asset."
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/60484
Sample Questions
Q1) Under IFRS,interest paid may be classified as:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Operating activities or financing activities.
E)Operating activities or investing activities.
Q2) Writing off an uncollectible account against the allowance would increase cash from customers.
A)True
B)False
Q3) EAE made the following cash outflows during 2012: \(\begin{array} { l }
\text { Cash for EAE common stock dividends..}&\$14 \\
\text {Cash for capital assets }&100 \\
\text {Cash to retire EAE's bond principal. }&60 \\
\text {Cash to purchase common stock. }&30\\
\text {Cash to pay interest on EAE's bonds. }&8 \\ \end{array}\)
What would be EAE's cash outflow for financing activities for 2012 (000s)?
Note: Under IFRS,dividends received may also be classified as operating cash flows.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 7: Financial Assets: Cash and Receivables
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/60483
Sample Questions
Q1) In the transfer of accounts receivable to a third party,the original customer is informed of the transfer and makes the payment to the third party.This is referred to as notification.
A)True
B)False
Q2) When the allowance method of recognizing bad debt expense is used,the typical write off of a specific customer's account:
A)decreases net income.
B)decreases current assets.
C)decreases working capital.
D)has no effect on net income.
Q3) Accounting for factoring accounts receivable without recourse is generally accounted for by the transferor (original seller of good or service) as a:
A)Sale
B)Loan
C)Transfer
D)Equity adjustment
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 8: Cost-Based Inventories and Cost of Sales
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/60482
Sample Questions
Q1) The following information relates to a firm with several similar products:
\[\begin{array} { | l | r| r| }
\hline & \text { Cost } & \text { Retail } \\
\hline \text { Beginning inventory } & \$ 29,000 & \$ 45,000 \\
\hline \text { Purchases } & 140,000 & 190,000 \\
\hline \text { Purchases discounts taken } & 3,000 & \\
\hline \text { Purchases returns } & 5,000 & 8,000 \\
\hline \text { Freight-in } & 20,000 & \\
\hline \text { Net mark-ups } & & 40,000 \\
\hline \text { Net markdowns } & & 12,000 \\
\hline \text { Sales } & & 190,000 \\
\hline \text { Employee discounts } & & 3,000 \\
\hline
\end{array}\] Using the retail inventory method and the average cost flow assumption (not LCM),what is ending inventory? When performing your calculations,round your cost ratios to one decimal point.
A)$44,888
B)$44,020
C)$42,036
D)$41,614
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 9: Property,Plant,and Equipment; Intangibles; and
Goodwill
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/60481
Sample Questions
Q1) SC has an old asset that originally cost $225,000 (accumulated amortization,$114,000).Its current market value is $114,001.SC purchased another asset by paying cash $13,500 and trading in the old asset.The new asset had a list price of $150,000 and a cash price of $135,000.The assets are similar.SC should record the cost of the new machine at:
A)$121,500.
B)$124,500.
C)$135,000.
D)$163,500.
Q2) The cost incurred to enhance the service potential of a capital asset is betterment and should be expensed immediately.
A)True
B)False
Q3) Land excavation costs incurred with the intention of constructing a building on the site would be added to the cost of the Land.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 10: Depreciation,Amortization,and Impairment
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/60489
Sample Questions
Q1) Goodwill is said to be impaired if the carrying value of the CGU including Goodwill is greater than its Fair Value.
A)True
B)False
Q2) Under ASPE,the first step in the two-step impairment test for depreciable assets is to determine whether an assets discounted cash flows exceeds its carrying amount.
A)True
B)False
Q3) Long-lived assets with finite lives are generally tested for impairment annually under IFRS,while under ASPE; impairment testing is only performed when events or circumstances indicate that impairment(s) may have occurred.
A)True
B)False
Q4) The Marc Corporation purchased factory equipment that was installed and put into service on January 2,2013,at a total cost of $48,000.Residual value was estimated at $3,000.The equipment is being amortized over four years using the double-declining balance method.Calculate for the year 2014,the amount Marc should record amortization expense on this equipment.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 11: Financial Instruments: Investments in Debt and Equity Securities
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/60488
Sample Questions
Q1) Fair-value-through-profit-and-loss (FVTPL) investments are usually held for the purpose of resale in the near-term.
A)True
B)False
Q2) On April 1,2014,a company purchased a $20,000,7.2 percent bond; interest is payable annually each September 31.The bond is accounted for using the cost method and was purchased for $20,800 including accrued interest.The accounting period ends December 31.Give the adjusting entry at the end of 2014.
Q3) In a lump-sum purchase of the shares of two or more companies,their relative par values are used as the basis of the allocation of cost to each.
A)True
B)False
Q4) Under IFRS,discounts or premiums on amortized cost investments may be amortized using either the straight line or effective interest methods.
A)True
B)False
Q5) List 3 factors that exhibit evidence of the existence of significant influence.
To view all questions and flashcards with answers, click on the resource link above. Page 12