ACC 545 Final Exam
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1) A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a 2) Which of the following is accounted for as a change in accounting principle? 3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: 14) Stock dividends distributable should be classified on the 15) Which of the following items is a current liability?
16) A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as 17) An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as 18) The primary purpose of the statement of cash flows is to provide information 19) Eller Co. received merchandise on consignment. As of January 31, Eller included the goods in inventory, but did not record the transaction. What would be the effect of this on its financial statements for January 31? 20) Cross Co. accepted delivery of merchandise that it purchased on account. As of December 31, Cross had recorded the transaction, but did not include the merchandise in its inventory. What would be the effect of this on its financial statements for December 31? 21) The failure to record a purchase of merchandise on account even though the goods are...
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