Devry ACCT 312 Final Exam Latest




Devry ACCT 312 Final Exam Latest


Question 1. 1. (TCO 1) Using straight-line depreciation for financial reporting purposes and MACRS for tax purposes in the first year of an asset’s life creates a (Points : 6)

future deductible amount.

permanent difference not requiring interperiod tax allocation.

deferred tax asset.

deferred tax liability.

Question 2. 2. (TCO 2) Eligibility requirements and the nature of benefits for postretirement healthcare plans usually are specified in the (Points : 6)

written plan.

informal plan.

substantive plan.

severance plan.

Question 3. 3. (TCO 3) Which of the following is not included among the assumptions needed to estimate postretirement healthcare benefits? (Points : 6)

Employee turnover

Expected retirement age of plan participants

Life expectancy of plan participants

Return on plan assets

Question 4. 4. (TCO 4) A small stock dividend is defined as one that is (Points : 6)

less than or equal to 10%.

less than 25%.

less than or equal to 40%.

less than 40%.

Question 5. 5. (TCO 5) Stock options do not affect the calculation of (Points : 6)

basic EPS.

weighted-average common shares.

the denominator in the diluted EPS fraction.

diluted EPS.

Question 6. 6. (TCO 7) Which of the following changes should be accounted for using the retrospective approach? (Points : 6)

A change in the estimated life of a depreciable asset

A change from straight-line to declining balance depreciation

A change from the completed-contract method of accounting for long-term construction contracts

A change to the LIFO method of costing inventories

Question 7. 7. (TCO 7) A change in depreciation method is accounted for (Points : 6)


as a cumulative adjustment to income in the year of change.

prospectively, like changes in accounting estimates.

None of the above

Question 8. 8. (TCO 8) How is the amortization of patents reported in a statement of cash flows that is prepared using the indirect method? (Points : 6)

A decrease in cash flows from investing activities

An increase in cash flows from investing activities

A deduction from net income in arriving at cash flows from operations

An addition to net income in arriving at cash flows from operations

Question 9. 9. (TCO 5) Which of the following is reported as an operating activity in the statement of cash flows? (Points : 6)

The repayment of bonds payable

The sale of a building

The payment of interest on long-term notes

The issuance of a preferred stock

Question 10. 10. (TCO 6) Which of the following is not a potential common stock? (Points : 6)

Convertible preferred stock

Convertible bonds

Stock rights

Participating preferred stock

Question 11. 11. (TCO 1) Please describe the differences of how IFRS differs from U.S. GAAP in respect to deferred taxes. (Points : 30)

Question 12. 12. (TCO 2) IAS 19 covers accounting for compensation plans. What are some examples of how they differ from U.S.GAAP? (Points : 30)

employee services are rendered.

Question 13. 13. (TCO 4) What is a stock split? How does a stock split impact outstanding shares and the per-share market price? How do stock splits impact the financial statements? (Points : 30)

Question 14. 14. (TCO 5) Please describe three examples of dilutive securities in a complex capital structure, and discuss why they are dilutive. (Points : 30)

Question 15. 15. (TCO 7) Please describe the retrospective approach and an example of when it should be used. (Points : 35)

Question 16. 16. (TCO 8) Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of four events during the fiscal year. Specify which category each event falls under (under the direct method), and note whether it increases cash, decreases cash, or has no impact on cash.

(1) 40,000 new shares of stock are issued near the close of the fiscal year.

(2). Drexon purchases 60% of a subsidiary company.

(3). Accounts receivable decreases from $620,000 to $610,000.

(4). Dividends of $12,000 are paid on Drexon company stock. (Points : 35)


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Devry ACCT 312 Final Exam Latest

Best Devry ACCT 312 Final Exam Latest

Devry ACCT 312 Final Exam Latest