1. One objective of financial reporting is to provide a) information about the investors in the business entity. b) information about the liquidation

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1 BRADLEY UNIVERSITY NAME: Instructions: JOHN GILLETT PROFESSOR, CPA, Ph.D. 1) A maximum of two hours is allowed to complete this examination. 2) This is a closed book examination. 3) Only simple non-programmable calculators will be allowed. 4) Mark your answer clearly, in pencil on the Scantron Form 5) Notes and other work will not be considered in determining a grade. 6) If you have questions regarding this examination please refer to the TAC student guide for direction about whom to contact. 7) The Scantron Form and the Examination must be returned at the end of the examination 8) This examination covers material drawn from the Thirteenth Edition of Intermediate Accounting by Kieso, Weygandt, and Warfield. Chapters included in this examination are: Chapter Title One Financial Accounting and Accounting Standards Two Conceptual Framework Underlying Financial Accounting Three The Accounting Information System Four Income Statement and Related Information Five Balance Sheet and Statement of Cash Flows Six Accounting and the Time Value of Money Seven Cash and Receivables Eight Valuation of Inventories: A Cost-Basis Approach Nine Inventories: Additional Valuation Issues Ten Acquisition and Disposition of Property, Plant, and Equipment Eleven Depreciation, Impairments, and Depletion Twelve Intangible Assets Thirteen Current Liabilities and Contingencies Eighteen Revenue Recognition Twenty-three Statement of Cash Flows I Page 1 of 8

2 1. One objective of financial reporting is to provide a) information about the investors in the business entity. b) information about the liquidation values of the resources held by the enterprise. c) information that is useful in assessing cash flow prospects. d) information that will attract new investors. 2. Companies that are listed on a stock exchange are required to submit their financial statements to the a) AICPA. b) APB. c) FASB. d) SEC. 3. The underlying theme of the conceptual framework is a) decision usefulness. b) understandability. c) reliability. d) comparability. 4. A decrease in net assets arising from peripheral or incidental transactions is called a(n) a) capital expenditure. b) cost. c) loss. d) expense. 5. Issuance of common stock for cash affects which basic element of financial statements? a) Revenues b) Losses c) Liabilities d) Equity 6. Which basic assumption may not be followed when a firm in bankruptcy reports financial results? a) Economic entity assumption. b) Going concern assumption. c) Periodicity assumption. d) Monetary unit assumption. 7. Revenue generally should be recognized a) at the end of production. b) at the time of cash collection. c) when realized. d) when realized or realizable and earned. 8. When a corporation pays a note payable and interest, a) the account notes payable will be increased. b) the account interest expense will be decreased. c) the will debit notes payable and interest expense. d) they will debit cash. 9. An adjusting entry should never include a) a debit to an expense account and a credit to a liability account. b) a debit to an expense account and a credit to a revenue account. c) a debit to a liability account and a credit to revenue account. d) a debit to a revenue account and a credit to a liability account. 10. The failure to properly record an adjusting entry to accrue an expense will result in an: a) understatement of expenses and an understatement of liabilities. b) understatement of expenses and an overstatement of liabilities. c) understatement of expenses and an overstatement of assets. d) overstatement of expenses and an understatement of assets. 11. Allen Corp. s liability account balances at June 30, 2011, included a 10% note payable in the amount of $2,400,000. The note is dated October 1, 2009, and is payable in three equal annual payments of $800,000 plus interest. The first interest and principal payment was made on October 1, In Allen s June 30, 2011, balance sheet, what amount should be reported as accrued interest payable for this note? a) $180,000. b) $120,000. c) $60,000. d) $40,000. I Page 2 of 8

3 12. In order to be classified as an extraordinary item in the income statement, an event or transaction should be a) unusual in nature, infrequent, and material in amount. b) unusual in nature and infrequent, but it need not be material. c) infrequent and material in amount, but it need not be unusual in nature. d) unusual in nature and material, but it need not be infrequent. 13. Which item below is not a current liability? a) Unearned revenue b) Stock dividends distributable c) The currently maturing portion of long-term debt d) Trade accounts payable 14. Stine Corp. s trial balance reflected the following account balances at December 31, 2010: Accounts receivable (net) $24,000 Trading securities 6,000 Accumulated depreciation on equipment and 15,000 furniture Cash 11,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Prepaid expenses 2,000 Land held for future business site 18,000 In Stine s December 31, 2010 balance sheet, the current assets total is? a) $90,000. b) $82,000. c) $77,000. d) $73, Which factor would be greater -- the present value of $1 for 10 periods at 8% per period or the future value of $1 for 10 periods at 8% per period? a) Present value of $1 for 10 periods at 8% per period. b) Future value of $1 for 10 periods at 8% per period. c) The factors are the same. d) Need more information. b) Prepaid expenses c) Cash d) Payables 17. What is the normal journal entry when writingoff an account as uncollectible under the allowance method? a) Debit Allowance for Doubtful Accounts, credit Accounts Receivable. b) Debit Allowance for Doubtful Accounts, credit Bad Debt Expense. c) Debit Bad Debt Expense, credit Allowance for Doubtful Accounts. d) Debit Accounts Receivable, credit Allowance for Doubtful Accounts. 18. Lawrence Company has cash in bank of $15,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report cash of a) $13,000. b) $15,000. c) $18,000. d) $19, Smithson Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $10,000. During 2010, it wrote off $7,200 of accounts and collected #2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/10, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2010? a) $2,000. b) $7,100. c) $9,200. d) $12, If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts a) Petty Cash, $75. b) Petty Cash, $100. c) Cash, $95; Cash Over and Short, $5. d) Cash, $ In which account are post-dated checks received classified? a) Receivables I Page 3 of 8

4 21. Finley, Inc. s checkbook balance on December 31, 2010 was $21,200. In addition, Finley held the following items in its safe on December 31. (1) A check for $450 from Peters, Inc. received December 30, 2010, which was not included in the checkbook balance. (2) An NSF check from Garner Company in the amount of $900 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, The original deposit has been included in the December 31 checkbook balance. (3) Coin and currency on hand amounted to $1,450. The proper amount to be reported on Finley s balance sheet for cash at December 31, 2010 is a) $21,300. b) $20,400. c) $22,200. d) $21, Where should goods in transit that were recently purchased f.o.b. destination be included on the balance sheet? a) Accounts payable b) Inventory c) Equipment d) Not on the balance sheet 23. The accountant for the Pryor Sales Company is preparing the income statement for 2010 and the balance sheet at December 31, Pryor uses the periodic inventory system. The January 1, 2010 merchandise inventory balance will appear a) only as an asset on the balance sheet. b) only in the cost of goods sold section of the income statement. c) as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet. d) as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet. a) overstatement, understatement, overstatement. b) overstatement, understatement, no effect. c) understatement, overstatement, overstatement d) understatement, overstatement, no effect. 25. During 2010, Larue Co., a manufacturer of chocolate candies, contracted to purchase 100,000 pounds of cocoa beans at $4.00 per pound, delivery to be made in the spring of Because a record harvest is predicted for 2011, the price per pound for cocoa beans had fallen to $3.10 by December 31, Of the following journal entries, the one which would properly reflect in 2010 the effect of the commitment of Larue Co. to purchase the 100,000 pounds of cocoa is a) Cocoa Inventory 400,000...Accounts Payable 400,000 b) Cocoa Inventory 310,000 Loss on Purchase Commitments 90,000...Accounts Payable 400,000 c) Estimated Loss on Purchase Commitments 90,000...Estimated Liability on 90,000 on....purchase Commitments d) No entry would be necessary in The following information is available for October for Barton Company. Beginning inventory $..50,000 Net purchases 150,000 Net sales 300,000 Percentage markup on cost 66.67% A fire destroyed Barton s October 31 inventory, leaving undamaged inventory with a cost of $3,000. Using the gross profit method, the estimated ending inventory destroyed by fire is a) $17,000. b) $77,000. c) $80,000. d) $100, If the beginning inventory for 2010 is overstated, the effects of this error on cost of goods sold for 2010, net income for 2010, and assets at December 31, 2011, respectively, are I Page 4 of 8

5 27. On April 1, 2009, Verlin Co. purchased new machinery for $240,000. The machinery has an estimated useful life of five years, no salvage value, and depreciation is computed by the sumof-the-years -digits method. The accumulated depreciation on this machinery at March 31, 2011, should be a) $160,000. b) $144,000. c) $96,000. d) $80, Which of the following methods of amortization is normally used for intangible assets? a) Sum-of-the-years -digits b) Straight-line c) Units of production d) Double-declining-balance 29. Wriglee, Inc. went to court this year and successfully defended its patent from infringement by a competitor. The cost of this defense should be charged to a) patents. b) legal fees and amortized over 5 years or less. c) expenses of the period. d) patents and amortized over the remaining useful life of the patent. 30. Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? a) Amount of loss is reasonably estimable and event occurs infrequently. b) Amount of loss is reasonably estimable and occurrence of event is probable. c) Event is unusual in nature and occurrence of event is probable. d) Event is unusual in nature and event occurs infrequently. 31. Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2010, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $2.50 each, how much liability for outstanding premiums should be recorded at the end of 2010? a) $25,000 b) $37,500 c) $62,500 d) $87, The revenue recognition principle provides that revenue is recognized when a) it is realized. b) it is realizable. c) it is realized or realizable and it is earned. d) none of these. 33. The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to a) the machinery account. b) a separate deferred charge account. c) miscellaneous tax expense (which includes all taxes other than those on income). d) accumulated depreciation -- machinery. 34. When computing the amount of interest cost to be capitalized, the concept of avoidable interest refers to a) the total interest cost actually incurred. b) a cost of capital charge for stockholders equity. c) that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made. d) that portion of average accumulated expenditures on which no interest cost was incurred. I Page 5 of 8

6 35. Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost $93,000 and had a net book value of $71,000. The old machine had a fair market value of $60,000. Which of the following is the correct journal entry to record the exchange? a) Equipment 68,000 Loss on Exchange 11,000 Accumulated Depreciation 22,000...Equipment 93,000...Cash 8,000 b) Equipment 68,000...Equipment 60,000...Cash 8,000 c) Cash 8,000 Equipment 60,000 Loss on Exchange 11,000 Accumulated Depreciation 22,000...Equipment 101,000 d) Equipment 123,000...Accumulated Depreciation 22,000...Equipment 93, If an industrial firm uses the units-ofproduction method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will a) be constant. b) vary with unit sales. c) vary with sales revenue. d) vary with production. 37. Solar Products purchased a computer for $13,000 on July 1, The company intends to depreciate it over 4 years using the doubledeclining balance method. Salvage value is $1,000. Depreciation for 2010 is a) $6,500 b) $3,250 c) $4,875 d) $3, Gardner Corporation purchased a truck at the beginning of 2010 for $75,000. The truck is estimated to have a salvage value of $3,000 and a useful life of 120,000 miles. It was driven 18,000 miles in 2010 and 32,000 miles in What is the depreciation expense for 2011? a) $20,000 b) $53,333 c) $19,200 d) $32, Newell, Inc. purchased equipment in 2009 at a cost of $600,000. Two years later it became apparent to Newell, Inc. that this equipment had suffered an impairment of value. In early 2011, the book value of the asset is $360,000 and it is estimated that the fair value is now only $240,000. The entry to record the impairment is a) No entry is necessary as a write-off violates the historical cost principle. b) Retained Earnings 120,000...Accumulated Depreciation -- of...equipment c) Loss on Impairment of Equipment 120,000...Accumulated Depreciation -- of...equipment d) Retained Earnings 120,000...Reserve for Loss on Impairment Impa..of Equipment 120, , , During 2010, Eldred Corporation acquired a mineral mine for $1,500,000 of which $200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2010? a) $130,000. b) $156,000. c) $180,000. d) $195, Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the LIFO method, what is the ending inventory? a) $20,073. b) $18,600. c) $20,925. d) $18,950. I Page 6 of 8

7 42. Walsh Retailers purchased merchandise with a list price of $50,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. Walsh should record the cost of this merchandise as a) $35,000. b) $36,000. c) $39,000. d) $50, Of the following questions, which one would not be answered by the statement of cash flows? a) Where did the cash come from during the period? b) What was the cash used for during the period? c) Were all the cash expenditures of benefit to the company during the period? d) What was the change in the cash balance during the period? 44. An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n) a) addition to net income in arriving at net cash flow from operating activities. b) deduction from net income in arriving at net cash flow for operating activities. c) cash outflow from investing activities. d) Cash outflow from financing activity. 45. When preparing a statement of cash flows (indirect method), an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because a) cash was increased while cost of goods sold was decreased. b) cost of goods sold on an accrual basis is lower than on a cash basis. c) acquisition of inventory is an investment activity. d) inventory purchased during the period was less than inventory sold resulting in a net cash increase. Use the following data for questions 46 and 47. Napier Co. provided the following information on selected transactions during 2011: Purchase of land by issuing bonds $...250,000 Proceeds from issuing bonds 500,000 Purchases of inventory 950,000 Purchases of treasury stock 150,000 Loans made to affiliated corporations 350,000 Dividends paid to preferred stockholders 100,000 Proceeds from issuing preferred stock 400,000 Proceeds from sale of equipment 50, The net cash provided (used) by investing activities during 2011 is a) $50,000. b) $(300,000). c) $(550,000). d) $(1,250,000). 47. The net cash provided by financing activities during 2011 is a) $550,000. b) $650,000. c) $800,000. d) $900, Lindsay Corporation had net income for 2011 of $3,000,000. Additional information is as follows: Depreciation of plant assets $...1,200,000 Amortization of intangibles 240,000 Increase in accounts receivable 420,000 Increase in accounts payable 540,000 Lindsay s net cash provided by operating activities for 2011 was a) $4,560,000. b) $4,440,000. c) $4,320,000. d) $1,680, The purpose of Statements of Financial Accounting Concepts is to a) establish GAAP. b) modify or extend the existing FASB Standards Statement. c) form a conceptual framework for solving existing and emerging problems. d) determine the need for FASB involvement in an emerging issue. 50. Nichols Company had 500 units of Dink in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of Dink. Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow assumption used by Kingman a) is FIFO. b) is LIFO. c) is weighted average. d) cannot be determined from the information given. I Page 7 of 8

8 END OF EXAMINATION I SEPTEMBER 2010 Page 8 of 8

9 BRADLEY UNIVERSITY ATG 301: INTERMEDIATE ACCOUNTING ANSWER KEY AND NOTES JOHN GILLETT PROFESSOR, CPA, Ph.D. QUESTION ANSWER COMMENTS 1. C by definition Financial Reporting の目的の一つは Cash flow の側面に関する情報を提供する事 である a) は 投資家についての情報となっているので注意 2. D by requirement 上場会社は Financial Reporting を SEC に提出しなけれ ばならない 3. A by definition conceptual framework は 意思決定に有益な事 が重要 である 4. C by definition 偶発的に資産が減少する事を Loss と言う 5. D The issuance of CS for cash is recorded by a debit to Cash and a credit to Stockholders Equity. Common Stock の発行仕訳は Dr. Cash / Cr. Stockholders Equity であり 資産と資本勘定に影響を与える 6. B Bankruptcy violates the going concern assumption Bankruptcy となった場合には going concern assumption の前提が崩れる 7. D by definition 定義通り Page 1 of 9

10 8. C The payment is in cash so you credit Cash and debit Notes Payable and Interest Expense. 9. B by definition Note の元本と 利息支払いの際の仕訳は Dr. Note payable Interest expense / Cr. Cash である 修正仕訳において Dr. Expense / Cr. Revenue となる仕訳は発生しない 10. A The entry to accrue an expense is to debit the expense and credit the liability. By not having the debit to an expense, you understate expense and by not having the credit to a liability you understate liabilities. 修正仕訳において Expense を計上し忘れた場合は Expense Liability 共に Understatement となる 11. D The NP starts at 2,400,000 on Oct 1, 2009 and would be reduced by the 800,000 Oct 1, 2010 payment, making the balance 1,600,000 on Oct 1, To make the 2010 statement, you would have to debit Interest Expense and Interest Payable for 1,600,000 x 0.10 x 3/12 = 40,000 so on June 30, 2011, you would show an accrued interest payable of 40,000. Notes Payable は 2009 年 10 月 1 日に発行され 2010 年 10 月 1 日に 800,000 の元本支払いが完了している その結果 2010 年期末において 3 か月分の経過利息が発生している 利息金額の計算式は 1,600,000 x 0.10 x 3/12 =40,000 となり が interest payable として計上されている 12. A by definition 定義通り Page 2 of 9

11 13. B Stock Dividends Distributable account is an equity account reduced when we issue the stock. All other accounts are current liabilities. Stock Dividends Distributable 勘定は 株式配当の際の勘定であり これは Equity 勘定で Current Liabilities 勘定ではない 残りは全て Current Liabilities である 14. D the CA are AR 24,000 + Trading Sec. 6,000 + Cash 11,000 + Inv. 30,000 + Prepaid Exp. 2,000 = 73,000 Current Assets の総額は以下の通り AR 24,000 + Trading Sec. 6,000 + Cash 11,000 + Inventory 30,000 + Prepaid Exp. 2,000 = 73, B PV is always less than 1 while FV is always greater than 1. Present Value は常に 1 より小さく Future Value は常に 1 より大きい 16. A Postdated checks are not considered cash, so they are receivables until they are no longer postdated. Postdated checks( 先日付小切手 ) は 予定期日が到来する前は Receivables として計上する 17. A When an account is recorded under the allowance method, by definition you debit the Allowance account and credit AR. Account receivable の貸し倒れが発生した場合の仕訳は Dr. Allowance for Doubtful Accounts Cr. Accounts Receivable. となり I/S インパクトは発生しない 18. B The restricted cash can not be considered as cash since it is restricted. The bank overdrafts at another bank must be considered as an AP. If it was in the same bank we would reduce the cash for the bank overdraft. まず Restricted Cash( 拘束性預金 ) は 引き出し制限がかかっているため Cash とはならない bank overdrafts( 当座貸越 ) は 同一銀行内であれば Cash との相殺を行うが 別の銀行であれば Account Payable として扱う Page 3 of 9

12 19. B The Allowance account started with a credit balance of 10,000. The write off of 7,200 is a debit to that account while the collection of 2,100 is a credit to the Allowance account. The balance in the Allowance is now a credit of $4,900. The credit should be 240,000 x 0.05 = 12,000 so Bad Debt Expense must be debited and the Allowance account must be credited for 7,100 to make a credit balance of 12,000. Allowance account は 期初 10,000 で当期 7,200 の貸し倒れが発生した 当期末に計上が必要な Allowance 残高は 期末 AR の 5% である そのため Bad Debt Expense(BDE) は 以下の計算により求める事が出来る BDE=ADA( 期末 )+ 貸し倒れ ADA( 期首 )- 回収 =12,000 +7,200 10,000-2,100=7, D When the account is replenished, it must be returned to a $250 balance. Since it has 150 in cash, we must credit Cash for $100 and debit Petty Cash for $100. Petty Cash( 設定額 $250) に $150 の残高があるため 差額の $100 が補充される Petty Cash が補充される際には 以下の仕訳が発生する Dr. Petty Cash 100 / Cr. Cash C The check for $450 in (1) is considered cash. The NSF check for $900 was included in cash and now must be removed. The coin and currency on hand are considered cash. Therefore, 21, ,450 = 22,200 与件の中で Cash となるのは (1)Check (4)Coin and Currency である また (2)NSF は一旦 Cash として計上されたものの 不渡りとなったため Cash から除外する必要がある よって Cash 残高は 21, ,450 = 22,200 となる 22. D Title does not pass until it reaches the destination, so they are not included in the buyer s inventory. f.o.b. destination で商品を仕入れた場合 所有権は目的地に到着するまでは売主の物なので 買主は自分の Inventory に含めてはいけない Page 4 of 9

13 23. B The beginning inventory is considered to be part of Goods Available and after Ending Inventory is subtracted, becomes part of CGS. Only the ending inventory is considered an asset on the BS. Inventory の Beginning 残高は I/S の COGS の一部として表示される 参考までに COGS は Inventory(BB)+ 当期仕入 Inventory(EB) で計算される 24. B Inventory errors are self-correcting over a two year cycle. An error in Beginning Inventory will correct the previous year. If 2010 beginning inventory is overstated, cost of goods sold is overstated and net income is understated. Inventory の残高に Error があった場合には 翌年自動的に Error による影響は解消される 2010 年の Inventory( 期初 ) が過大 (overstated) であれば Cost Of Goods Sold は overstated であり net income は understated となる 25. C The drop in price ( ) must be recorded in the year it occurred. 0.90(100,000) = 90,000 仕入れ価格の減少による発生する 仕入れ契約上の損失は (@4.00-@3.10) x 100,000=90,000 となる 26. A まず初めに原価率を計算します Mark up on cost 66.67% とありますので 原価 100% に対して 利益を 66.67% 加算していることになります 従って 原価 100 に対して利益が 売価は合計で になります 原価率は 100 / で約 60% となります 以上より Goods available は 50, ,000 = 200,000 焼失した inventory は 200, (300,000)= $20,000 と予想されます しかし $3,000 分は無傷でしたので $17,000 が焼けてしまったことになります 27. B The sum of the years is = 15 Two years has passed so 9/15 x (240,000) should be in accumulated depreciation sum of the years は = 15 であり 使用開始から 2 年が経っているため accumulated depreciation は 9/15 x (240,000)=144,000 と求められる Page 5 of 9

14 28. B by definition Intangible Asset は 原則 Straight-Line で償却される 29. D The cost of a successful patent infringement case is capitalized and amortized successful patent infringement により発生したコストは 特許に資産計上され償却される 30. B by definition Loss Contingency は 発生確率が Probable で損失額が Reasonably Estimate の場合に Loss を計上しなければならない 31. B Liability は 以下の計算により求められる 0.60 x 675,000 = 405, , ,000 = 75,000 75,000/3 x ( ) = 37,500 Cereal Bowl は 2.5 ドルだが 顧客から 1 ドル送ってもらうため 会社の実質負担は 1.5 ドル 32. C by definition 定義通り 33. A All costs of getting an asset ready for its intended use are capitalized as part of the asset. PPE を購入した場合に 使用を開始するために発生した費用は 一旦 PPE に計上され Useful Life で減価償却される 34. C by definition Avoidable interest とは Fixed Asset の製造や建設がもし無ければ それに対する借り入れを行なう必要が無く 従って避けることが出来たであろう利息のこと Page 6 of 9

15 35. A The old machine must be removed from the books so debit Accumulated Depreciation 22,000 and credit Equipment 93,000; cash is used so credit Cash for 8,000. The FV of the old machine (60,000) + the cash are debited to equipment. Old Machine は帳簿から外され New Machine を資産計上する その際の計上額は Old Machine(FV)+Boot Given =68,000 である Old Machine の BV と FV の差額が Loss となる 36. D by definition 定義通り 37. B SV is not considered in the DD since it is 4 years. 1/4 = 25% x 2 = 50% 0.50(13,000) for half a year = $3,250 DDB の計算において注意が必要なのは SV を BV から引いてはいけないという事である 償却率 1 4 = 25% x 2 = 50% 償却額 ,000 2( 半年 ) = $3, C 75,000-3,000 = 72,000 72,000/120,000 x 32,000 = 19,200 Usage Method により 減価償却額は以下の通り求められる 75,000 3,000 = 72,000 72, ,000 x 32,000 = 19, C An impairment loss must be recorded as a Loss with a corresponding credit to Accumulated Depreciation. Impairment Loss は Accumulated Depreciation に追加計 上される 40. B $1,300,000 x 1,200,000/10,000,000 = 156,000 Depletion Expense は 以下の通り計算される $1,300,000 x 1,200,000/10,000,000 = 156,000 Page 7 of 9

16 41. D The ending inventory would be 1,550 units priced at (1,200 x 12) + (350 x 13) = 18,950 Ending Inventory( 個数 1,550) の残高は 以下の通り計算される LIFO method なので新しく仕入れたものから順に売れていく (1,200 x 12) + (350 x 13) = 18, B 50, (50,000) = 40,000 40, (40,000) = 36,000 当初仕入れ値が 20% 10% と 2 回にわたって値下げされている 期末の Inventory 残高は以下の通り 50,000 ( ) = 40,000 40,000 ( ) = 36, C The cash flow statement shows where cash came from, where it went and if there were any changes in cash balance. Only answer C is feasible. Cash Flow statement は Cash がどこから来てどのように使われ 最終的な残高がいくらになったのかを示す計算書である 44. B Changes in CA and CL are shown in operations and an increase in inventory means some cash was not used for operations, so it must be deducted. 流動資産 流動負債の変動は Operating Activity の中に 記載される 45. B by definition 定義通り 46. B (350,000) - 50,000 Investing activities の計算式は 350, ,000= 300,000 である 47. B 500, , , ,000 Financing activities の計算式は 500, , , ,000=650,000 である Page 8 of 9

17 48. A 3,000, ,200, , , ,000 = 4,560,000 operating activities の計算式は 3,000, ,200, , , ,000 = 4,560,000 である 49. C by definition Statements of Financial Accounting Concepts(SFAC) とは 一般的な会計原則の概念 定義 解釈を提供する事が目的である 50. B Sales - CGS = Gross Profit 6,000 - x = 2,100 x = 3,900 Total cost of (500 x 5) + (300 x 8) = 4,900, so there must be 1,000 cost left in inventory for the 200 units. All are from the beginning inventory. 先ず COGS を求める Sales - COGS = Gross Profit 6,000 - COGS = 2,100 COGS = 3,900 Inventory の販売可能額は 4,900 であり 期末に 1,000 残高が残っている 売れ残りは 200 個 (@5) となり これらは全て期首在庫の売れ残りである事が分かる よって LIFO が用いられたと考えられる Page 9 of 9