105.An excess of income taxes expense over income taxes payable for a period is associated with a(n)
a.
debit to the Deferred Income Taxes account.
b.
error.
c.
excess of accounting income over taxable income.
d.
excess of taxable income over accounting income.
106.An excess of income taxes expense over income taxes payable will result in recording a
a.
credit to Deferred Income Taxes.
b.
credit to Prior Period Adjustment.
c.
debit to Income Taxes Payable.
d.
debit to Deferred Income Taxes.
107.Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a
a.
long-term liability.
b.
long-term asset.
c.
current asset.
d.
current liability.
108.Which of the following should be reported net of the related income tax effect on the income statement?
a.
Loss due to shoplifting
b.
Sale of an inventory item at a loss
c.
Sale of a temporary investment at a loss
d.
Loss due to a discontinued segment of a business
109.When there is a difference in the timing of revenues and expenses for accounting versus income tax purposes, it usually is necessary to
a.
adjust accounting income.
b.
perform income tax allocation procedures.
c.
do nothing because such differences are a result of two different sets of rules.
d.
adjust taxable income.
110.A debit balance in Deferred Income Taxes is classified as
a.
a liability.
b.
an expense.
c.
revenue.
d.
an asset.
111.Assume that a corporation in the 25 percent tax bracket purchases a piece of equipment for $66,000 with a ten-year useful life and no estimated salvage value. The corporation uses straight-line depreciation for book purposes and double-declining-balance depreciation for tax purposes. The first-year temporary difference, using income tax allocation procedures, would result in a
a.
debit to Deferred Income Taxes of $6,600.
b.
debit to Deferred Income Taxes of $1,650.
c.
credit to Deferred Income Taxes of $1,650.
d.
credit to Deferred Income Taxes of $6,600.
112.The existence of which of the following would be indicative of a company with a complex capital structure?
a.
Nonconvertible preferred stock
b.
Common stock
c.
Nonconvertible bonds
d.
Stock options
113.Which of the following would be included in the computation of earnings per share for a company with a simple capital structure?
a.
Stock options
b.
Number of shares of nonconvertible preferred stock
c.
Dividends declared on nonconvertible preferred stock
d.
Dividends declared on common stock
114.What effect will the purchase of treasury stock have on total stockholders’ equity and earnings per share, respectively?
a.
Decrease and no effect
b.
Decrease and decrease
c.
Decrease and increase
d.
Increase and decrease
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