57. Belmont Industries is subject to a 35% tax rate and has a December 31 year-end. During 2010, the accountant discovered an error made in 2009 relative to a capital expenditure that was incorrectly expensed. The total pre-tax amount of the error was $67,500. The prior period adjustment to beginning retained earnings will equal:
A)$(67,500)
B)$(23,625)
C)$ 67,500
D)$ 43,875
58. Colby Enterprses is subject to a 30% tax rate and has a December 31 year-end. During 2010, the accountant discovered an error made in 2009 relative to an expenditure that was incorrectly classified as an asset when it should have been expensed. The total pre-tax amount of the error was $70,000. The prior period adjustment to beginning retained earnings will be ______ by $_______.
A)reduced $49,000
B)reduced $21,000
C)increased $70,000
D)increased $49,000
59. Big River Enterprises is subject to a 40% tax rate and has a December 31 year-end. During 2010, the accountant discovered that in 2009 some interest expense relative to a note payable had not been accrued. The amount of omitted interest totaled $53,800. The prior period adjustment to beginning retained earnings will equal:
A)$(32,280)
B)$(53,800)
C)$ 21,520
D)$ 53,800
60. Brentwood, Inc.’s Statement of Changes in Owners’ Equity for the year ended December 31, 2010 showed a reduction to prior period adjustment, net of taxes, equal to $41,250. The company has an effective tax rate of 45%. The gross amount of the error was an:
A)understatement of income in the prior year of $18,563
B)overstatement of income in the prior year of $75,000
C)understatement of income in the current year of $22,688
D)overstatement of income in the prior year of $91,667
61.In 2010 MacFee Inc discovered that its ending inventory in 2007 was too big by $45,000. How much will MacFee’s beginning retained earnings (Jan. 1, 2010) need to be adjusted to correct this error given a tax rate of 30%.
A)Increase retained earnings $31,500
B)Do not adjust retained earnings
C)Decrease retained earnings by $45,000
D)Decrease retained earnings $31,500.
62.In 2010 Townsend Inc discovered that its ending inventory in 2009 was too big by $95,000. How much will Townsend’ss beginning retained earnings (Jan. 1, 2010) need to be adjusted to correct this error given a tax rate of 30%.
A)Increase retained earnings $66,500
B)Do not adjust retained earnings
C)Decrease retained earnings by $95,000
D)Decrease retained earnings $66,500.
63. What item would not be included in comprehensive income?
A)foreign currency translation adjustments
B)unrealized gains & losses
C)dividends to stockholders
D)all would be included in comprehensive income
64. Name the asset that will most likely pay for a company’s accounts payable.
A)intangible asset
B)accounts receivable
C)equipment
D)prepaid insurance
65. Which of the following answers would not be classified as a current asset?
A)inventory
B)prepaid insurance
C)common stock
D)cash
66. What order are current assets classified?
A)liquidity
B)value
C)assets
D)age
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more