2nd Quiz 9-16 Flashcards Preview

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Flashcards in 2nd Quiz 9-16 Deck (12):
0

The investor receiving stock rights must allocate a portion of...

The purchase price of the investment that carried the rights

1

Although stock rights were received 6 months after the purchase, the rights still...

Ride with the purchase

2

How are stock rights allocated? Example using 1,000 shares at $60, with rights of $1 at market price of $61 on balance sheet date

Allocate portion of the purchase price based market value of
Rights as percentage of total market value of stock + rights

Ex $60,000 x ($1/($61 + $1)) = $968

3

Replacement cost is reported as lower cost of market value, If replacement cost falls below...

Net realizable value and above NRV - normal profit margin

4

A deferred tax liability exists when...

Underlying temporary differences are taxable temporary differences

5

Price indexes in Dollar value LIFO serve as...

Estimates of price level changes

6

Topic 275 of the FASB's Accounting Standards Codification is entitled "Risks and Uncertainties". It addresses...

The disclosures required to facilitated a user's evaluation of
An entity's risks and uncertainties

7

Would additional paid in capital be affected on the dividend declaration date or the dividend distribution date?

Dividend declaration date

8

What is the journal entry to record a stock dividend declaration?

Retained Earnings. Xxx
Common stock dividend distributable. Xxx
Additional Paid in Capital Xxx

9

A sole proprietorship business is not a...

2) what does this mean?

Taxable entity

2) there is no required provision for income taxes

10

Business income from a sole proprietorship is...

Passed through to the owner

11

Taxes would be paid by the owner on the proprietor's...

Personal tax return