104 you have a goal of having 100 000 five years from today the return on the invest 4314120

104 you have a goal of having 100 000 five years from today the return on the invest 4314120

104.You have a goal of having $100,000 five years from today. The return on the investment is expected to be 10% and will be compounded semi-annually. The amount that needs to be invested today is closest to: 

A. $61,390.

B. $62,090.

C. $78,350.

D. $38,550.

105.Which of the following correctly describes the accounting for leases?

A. A capital lease is not reported on the balance sheet as a liability.

B. A capital lease reports an asset on the balance sheet.

C. An operating lease reports an operating asset on the balance sheet.

D. An operating lease reports a liability on the balance sheet.

106.Which of the following questions is asked with respect to determining the accounting for leases?

A. Is the lease term greater than 90% of the asset's estimated life?

B. Is the present value of the payments greater than 75% of the asset's fair market value?

C. Does the lease provide for an opportunity for the lessee to purchase the leased asset during the lease term at fair market value?

D. Does the lease provide for a transfer of title of the leased asset at the end of the lease term to the lessee?

107.Which of the following questions is incorrect with respect to determining the accounting for leases?

A. Is the lease term greater than 75% of the asset's expected economic life?

B. Is the present value of the payments greater than 75% of the asset's fair market value?

C. Does the lease provide for an opportunity for the lessee to purchase the leased asset for a price less than fair market value?

D. Does the lease provide for a transfer of title of the leased asset at the end of the lease term to the lessee?

108.Your goal is to be able to withdraw $5,000 for each of the next ten years beginning one year from today. The return on the investment is expected to be 12%. The amount that needs to be invested today is closest to:

A. $44,645.

B. $36,291.

C. $28,251.

D. $50,000.

109.Your goal is to be able to withdraw $10,000 for each of the next nine years beginning one year from today and also to withdraw $50,000 ten years from today. The return on the investment is expected to be 6%. The amount that needs to be invested today is closest to: 

A. $68,017.

B. $95,937.

C. $78,176.

D. $132,075.

110.A loan supported by an agreement to transfer ownership of assets if the loan is not repaid is called a: 

A. Private placement of debt

B. Publicly traded debt

C. Secured debt

D. Capital lease

111.When a company has debt coming due and wants to refinance and classify the debt as a long-term liability rather than paying for it currently with cash: 

A. U.S. GAAP requires the debt be refinanced by the balance sheet date and IFRS requires that the company have intent to refinance on a long-term basis.

B. U.S. GAAP requires that the company have intent to refinance the debt on a long-term basis and IFRS requires the debt be refinanced by the balance sheet date.

C. U.S. GAAP requires that the company have intent and ability to refinance the debt on a long-term basis and IFRS requires the debt be refinanced by the balance sheet date.

D. U.S. GAAP requires the debt be refinanced within 60 days of the balance sheet date and IFRS requires the debt be refinanced by within 30 days of the balance sheet date.

112.With regard to reporting contingent liabilities on a balance sheet, financial statements prepared under International Financial Reporting Standards (IFRS) will: 

A. Have fewer contingent liabilities accrued than under U.S. GAAP because the IFRS guideline for “probable” is a higher percentage than the U.S. GAAP guideline for “probable”.

B. Have more contingent liabilities accrued than under U.S. GAAP because the IFRS guideline for “probable” is a lower percentage than the U.S. GAAP guideline for “probable”.

C. Have more contingent liabilities accrued than under U.S. GAAP because IFRS requires all lawsuits, environmental problems, and product warranties that are reasonably estimable to be accrued while U.S. GAAP requires accrual only if losses are reasonably possible of being incurred.

D. Have fewer contingent liabilities accrued than under U.S. GAAP because IFRS requires a more subjective evaluation of the probability of occurrence than does U.S. GAAP.

9-1

Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts