ACC 499 Midterm Exam Answershttp://www.homeworkwarehouse.com/downloads/acc-499-midterm-exam-answers/

ACC 499 Midterm Exam Answers

Question 1FASBs rules concerning leases are an attempt to record in the financial statements:Question 2The lessees footnote disclosures should include the future minimum rental payments as of the date of the latest balance sheet presented, in the aggregate and for a certain number of succeeding fiscal years. This number of years isQuestion 3Minimum lease payments do not includeQuestion 4Which of the following facts would require a lessor to classify a lease as an operating lease?Question 5A direct financing lease differs from a sales-type lease in thatQuestion 6Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should beAnswerQuestion 7When a lessee makes periodic cash payments for a capital lease, which of the following accounts is decreased?Question 8When a lessee makes periodic cash payments for a capital lease, which of the following accounts is increased?Question 9When a lessor receives cash on an operating lease, which of the following accounts is increased?Question 10Which of the following facts would require a lessee to classify a lease as a capital lease?Question 11Executory costsQuestion 12The lessor should report the Lease Receivable for a sales-type lease on its balance sheet asQuestion 13A corporation that operates in Texas but is incorporated in Nevada is viewed as aQuestion 14Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n)Question 15Under the fair value method, the grant date is the date:Question 16Dividends in arrears pertain to:Question 17When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited toQuestion 18What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation?Question 19For stock appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is:Question 20When existing corporations issue stock, costs such as legal fees and underwriters fees are usually accounted for as:Question 21A preemptive right is:Question 22A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon theQuestion 23The value assigned to stock warrants for a noncompensatory stock option plan is calculated as?Question 24Universities, hospitals, and churches are examples of which type of corporation?Question 25The preference to dividends that preferred stockholders have is: