Day 13 - Weekend Study Flashcards
Name permanent differences and what would cause a deferred tax liability?
Permanent Differences:
- Penalties paid for legal violations
- Life insurance proceeds from the death of key employees
- Interest on municipal bonds
Deferred Tax Liability = Depreciation on tangible assets
Using the straight line method what is interest expense?
MCQ-00692
For bonds, what is the Interest Expense and the Interest Payment?
Interest Payment = FV × Stated Rate
Interest Expense = CV × Mkt Rate
MCQ-05953
An investor purchased a bond between interest dates at a discount. At the purchase date, the carrying amount of the bond is more than:
less than the cash paid to the seller
Less than the face amount of the bond
MCQ-00515
MCQ-05129
How are legal and registration fees Incurred while obtaining a patent accounted for?
Capitalized
MCQ-05352
Using the SL method the premium of bond amortization is an:
Equal amount for premium on bond payable is debited for amortization each period
MCQ-01098
Interest Paid on a discount bond is equal to:
Interest Expense LESS the amortization of the discount
MCQ-01251
If a trademark has a remaining legal life of five years, but can be renewed every 10 years for a nominal fee and the company expects to renew the trademark indefinitely. What amount of amortization should the company record?
NONE
MCQ-06571
For a Lessee to account for a lease as a finance lease:
OWNES
- Ownership
- Written Option
- Net PV of minimum lease pmts = 90% of Fair Value of leased property
- Economic Life is 75% or more of the assets Useful Life
- Specialized asset only the Lessee can use
MCQ-05440
What is the difference between the Gross Method and the Net Method of recording AP?
Gross Method - Records a purchase without regards to the discount, when paid a Purchase Discount is credited
Net Method - Purchases and AP are recorded net of the discount, If payment is made after the discount period, a Purchase Discount LOST account is debited
