DeVry ACCT 312 Final Exam (Updated)

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1.(TCO 1) A deferred tax asset represents a (Points : 6)

future income tax benefit.
future cash collection.
future tax refund.
future amount of money to be paid out.

Question 2.2.(TCO 2) Which of the following is not a requirement for a qualified pension plan? (Points : 6)
It cannot discriminate in favor of highly paid employees.
It must be funded in advance of retirement.
It must cover at least 80% of the employees.
Benefits must vest after a specified period of service, commonly 5 years.

Question 3.3.(TCO 3) Which of the following is not included among the assumptions needed to estimate postre
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) The calculation of diluted earnings per share assumes that stock options were exercised a
proceeds were used to (Points : 6)
buy common stock as an investment.
buy treasury stock.
retire preferred stock.
increase net income.

Question 6.6.(TCO 7) Which of the following changes should be accounted for using the retrospective approac
: 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) On October 31, 2003, our company changed the estimated useful life of its office equipm
15 to 10 years. This change would be accounted for (Points : 6)

prospectively.
retrospectively.
as an accounting error.
None of the above

Question 8.8.(TCO 8) When preparing the statement of cash flows using the indirect method, depreciation (Poi
is deducted from net income.
is added to net income.
is not included in the statement of cash flows.
is an investing activity.

Question 9.9.(TCO 5) Which of the following is reported as an operating activity in the statement of cash flows
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) Nonconvertible bonds affect the calculation of (Points : 6)

basic earnings per share.
diluted earnings per share.
Both A and B
None of the above

1. (TCO 1) Please describe net operating loss carry-backs and carry-forwards and how
they can be used, and discuss how many years they can be used. (Points : 30)

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

3. (TCO 4) What are the two categories of stock dividends? How do they differ? How
are retained earnings and APIC impacted in each category? (Points : 30)

4. (TCO 5) Please describe three examples of dilutive securities in a complex capital

structure and discuss why they are dilutive. (Points : 30)

5. (TCO 7) Please describe how changes in accounting estimates are treated. What is
the rationale for this approach? What are some examples of accounting estimates?
(Points : 35)


6. (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 4 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. Accounts payable decreases from $400,000 to $385,000.
2. An interest payment of $85,000 is made on a new debt issuance.
3. Capital expenditures of $35,000 are made for equipment used in day to day operations.
4. Dividends of $6,500 are received from a stock classified as available for sale.

DeVry ACCT 312 Final Exam (Updated)

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https://devryfinalexams.com/products/acct-312-final-exam-updated/