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ACC 577 Final Exam Guide
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ACC 577 Final Exam Guide

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ACC 577 Final Exam Study

Question 1      

At the time Company P acquired controlling interest of Company S the following accounts and balances existed on the books of the two companies: Which one of the following amounts should be eliminated in preparing a consolidated balance sheet immediately following the business combination?

Question 2 

In which one of the following cases will a non-cash asset transferred as consideration in a business combination be measured at carrying value, not at fair value?

Question 3 

On January 1, 200x Ritt Corp. purchased 80% of Shaw Corp.'s $10 par common stock for $975,000. On this date, the carrying amount of Shaw's net assets was $1,000,000. The fair values of Shaw's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) which were $100,000 in excess of the carrying amount. On that date, the fair value of the 20% non controlling interest in Shaw was appropriately determined to be $200,000. For the year ended December 31, 200x, Shaw had net income of $190,000 and paid cash dividends totaling $125,000. In the January 1, 200x consolidated balance sheet, goodwill should be reported at

Question 4 

On December 31, 1988, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Assume that the merger is accounted for using the acquisition method of accounting. December 31, 1988 additional paid-in capital should be reported at

Question 5 

Scroll, Inc., a wholly owned subsidiary of Pirn, Inc., began operations on January 1, 2005. The following information is from the condensed 2005 income statements of Pirn and Scroll: Additional information: 

Sales by Pirn to Scroll are made on the same terms as those made to third parties. Equipment purchased by Scroll from Pirn for $36,000 on January 1, 2005, is depreciated using the straight-line method over four years. In Pirn's December 31, 2005, consolidating worksheet, how much intercompany profit should be eliminated from Scroll's inventory?

Question 6 

The preparation of consolidated statements likely will require the following information about the subsidiary's assets and liabilities at the date of acquisition:

Question 7      

Which one of the following levels of voting ownership is normally assumed to convey significant influence over an investee?

Question 8      

In recording its acquisition of Lambda, Inc., Omega, Inc. properly recognized a contingent consideration liability of $28,000 associated with a possible payment based on a target amount of post-combination cash flow from operations. Shortly after the combination, but during the measurement period, the national economy experienced a significant downturn which made it unlikely that the target amount would be reached. As a consequence, at the end of Omega's fiscal period, the liability was properly revalued to a fair value of $9,000. Which one of the following is the amount of gain or loss that will be recognized in income as a result of the reevaluation of the contingent liability?

Question 9      

Beni Corp. purchased 100% of Carr Corp.'s outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: On the date of purchase, the fair value of Carr's assets was $50,000 more than the aggregate carrying amounts. In the consolidated balance sheet prepared immediately after the purchase, the consolidated stockholders' equity should amount to:

Question 10 

Which one of the following methods, if any, may a parent use on its books to carry an investment in a subsidiary that it will consolidate?

Question 11 

Parco owns 100% of its subsidiary, Subco, which it acquired at book value. It carries its investment in Subco on its books using the equity method of accounting. At the beginning of its 2009 fiscal year, the investment in Subco account was $552,000. During 2009 Subco reported the following: In preparing its 2009 fiscal year consolidated statements, which one of the following is the total amount of equity revenue that Parco will have to reverse for 2009 as a result of it ownership of Subco?

Question 12 

Which of the following kinds of transactions should be eliminated in the consolidating process?

Question 13    

Which of the following statements concerning the primary beneficiary of a variable-interest entity is/are correct? I. The primary beneficiary has the ability to direct the most significant economic activities of the variable-interest entity. II. Only one entity can be the primary beneficiary of a variable-interest entity. III. The investor that has the greatest equity ownership in a variable-interest entity will be the primary beneficiary of the entity.

Question 14    

Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct?

Question 15 

P Co. purchased term bonds at a premium on the open market. These bonds represented 20 percent of the outstanding class of bonds issued at a discount by S Co., P's wholly owned subsidiary. P intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying amounts in the two companies would be

Question 16 

In which of the following circumstances of a business combination, if any, could the recognition of a gain occur at the time of the combination?

Question 17                

Aceco has significant investments in three separate entities. These investments are: Which of Aceco's investments would be consolidated with Aceco in its consolidated financial statements?

Question 18    

Consolidated financial statements are based on the concept that:

Question 19 

On January 1, 2005, Poe Corp. sold a machine for $900,000 to Saxe Corp., its wholly-owned subsidiary. Poe paid $1,100,000 for this machine, which had accumulated depreciation of $250,000. Poe estimated a $100,000 salvage value and depreciated the machine on the straight-line method over 20 years, a policy which Saxe continued. In Poe's December 31, 2005, consolidated balance sheet, this machine should be included in cost and accumulated depreciation as

Question 20    

In which one of the following cases is Company A most likely to be the acquirer of Company B in a business combination?

Question 1      

Hedges of foreign currency risks can be the hedge of:

Question 2 

On its December 31, 2004 balance sheet, Nilo Corp reported bonds payable of $8,000,000 and related unamortized bond issue costs of $430,000. The bonds had been issued at par. On January 2, 2005, Nilo retired $4,000,000 of the outstanding bonds at par plus a call premium of $100,000. What amount should Nilo report in its 2005 income statement as loss on extinguishment of debt?

Question 3                  

Servco, a loan servicing agency, paid $60,000 to acquire a three-year right to service $1,000,000 of Banco's loans. Servco will be entitled to a servicing fee of 1% of the interest and fees collected during the three-year period. Servco expects its servicing fees to be: Which one of the following is the amount of gross profit after amortization of the servicing asset that Servco expects to earn over the three-year life of the service contract?

Question 4 

Specific disclosures in financial statements are required when an entity engages in:

Question 5 

Which one of the following sets best describes the meaning of the terms "underlying" and "notional amount" as applied to derivative instruments?

Question 6 

Which of the following must the transferor of a financial asset disclose? I. Assets pledged as collateral, either in the balance sheet or notes. II. Detailed information about financial assets that have been securitized and sold.

Question 7      

Servco, a loan servicing agency, paid $60,000 to acquire a three-year right to service $1,000,000 of Banco's loans. Servco will be entitled to a servicing fee of 1% of the interest and fees collected during the three-year period. Servco expects its servicing fees to be: Which one of the following is the amount of the $60,000 acquisition fee that Servco should amortize during year 1?

Question 8      

Which of the following, if any, can be the risk being hedged in a foreign currency hedge?

Question 9 

A derivative financial instrument is best described as:

Question 10    

Which of the following conditions must be met for derecognition of a transferred financial asset to occur under IFRS? I. The financial asset has been transferred outside the consolidated group of the transferor. II. The transferor has transferred substantially all of the risks and rewards of ownership of the financial asset. III. The contractual rights to the financial assets cash flows cannot be retained by the transferor, but must be transferred to the transferee.

Question 11                

Where in its financial statements should a company disclose information about its concentration of credit risks?

Question 12 

Which of the following kinds of risk must be disclosed for most financial instruments?

Question 13    

Bigco, Inc. transferred long-term receivables with a carrying value of $500,000 to Banco for $425,000 cash. Banco will collect interest on the receivables during the life of the receivables, but Bigco is obligated to repurchase the receivables prior to their maturity. What amount of receivables has Bigco surrendered control of for accounting purposes?

Question 14    

Which one of the following is not associated with accounting for a transfer of a financial asset treated as a sale by the transferor?

Question 15 

For accounting purposes, which one of the following is not a characteristic associated with the transfer of financial assets?

Question 16    

A change in the fair value of a derivative qualified as a cash flow hedge is determined to be either effective in offsetting a change in the hedged item or ineffective in offsetting such a change. How should the effective and ineffective portions of the change in value of a derivative which qualifies as a cash flow hedge be reported in financial statements?

Question 17    

A financial asset is transferred with one component of the asset appropriately treated as sold and another component appropriately treated as retained. How will the amount to be written off as sold be determined?

Question 18 

On September 1, 2005, Hall Corp. redeemed $500,000 of its 12%, 15-year bonds. Related unamortized bond premium and issue costs at that date were $8,000 and $10,000, respectively. What amount should Hall use to determine gain or loss on redemption?

Question 19    

For accounting purposes, which one of the following circumstances would not be considered the transfer of a financial asset?

Question 20    

Gains and Losses from changes in the fair value of a derivative designated and qualified as a fair value hedge should be:

Question 1      

A U.S. entity is concerned that changing exchange rates will result in a loss on a foreign currency to be received in the future. To hedge the risk of possible loss, the entity should acquire a forward contract to

Question 2 

During 2005 both Raim Co. and Cane Co. suffered losses due to the flooding of the Mississippi River. Raim is located two miles from the river and sustains flood losses every two to three years. Cane, which has been located fifty miles from the river for the past twenty years, has never before had flood losses. How should the flood losses be reported in each company's 2005 income statement?

Question 3      

On September 1, 2008, Bain Corp. received an order for equipment from a foreign customer for 300,000 local currency units (LCU) when the U.S. dollar equivalent was $96,000. Bain shipped the equipment on October 15, 2008, and billed the customer for 300,000 LCU when the U.S. dollar equivalent was $100,000. Bain received the customer's remittance in full on November 16, 2008, and sold the 300,000 LCU for $105,000. In its income statement for the year ended December 31, 2008, Bain should report a foreign exchange gain of:

Question 4 

The following information is relevant to the computation of Chan Co.'s earnings per share to be disclosed on Chan's income statement for the year ending December 31: Chan has no preferred stock outstanding, and no other convertible securities. What amount should be used as the numerator in the fraction used to compute Chan's diluted earnings per share assuming that the bonds are dilutive securities?

Question 5 

Fay Corp. had a realized foreign exchange loss of $15,000 for the year ended December 31, 2005 and must also determine whether the following items will require year-end adjustment: Fay had an $8,000 loss resulting from the translation of the accounts of its wholly owned foreign subsidiary for the year ended December 31, 2005. Fay had an account payable to an unrelated foreign supplier payable in the supplier's local currency. The U.S. dollar equivalent of the payable was $64,000 on the October 31, 2005 invoice date, and it was $60,000 on December 31, 2005. The invoice is payable on January 30, 2006. In Fay's 2005 consolidated income statement, what amount should be included as foreign exchange loss?

Question 6      

Gains from remeasuring a foreign subsidiary's financial statements from the local currency, which is not the functional currency, into the parent company's currency should be reported as a(an)

Question 7      

The following information pertains to Flint Co.'s sale of 10,000 foreign currency units under a forward contract dated November 1, 2004, for delivery on January 31, 2005: Flint entered into the forward contract in order to speculate in the foreign currency. In Flint's income statement for the year ended December 31, 2004, what amount of loss should be reported from this forward contract?

Question 8      

In 2003, a personal injury lawsuit was brought against Halsey Co. Based on counsel's estimate, Halsey reported a $50,000 liability in its December 31, 2003, balance sheet. In November 2004, Halsey received a favorable judgment, requiring the plaintiff to reimburse Halsey for expenses of $30,000. The plaintiff has appealed the decision, and Halsey's counsel is unable to predict the outcome of the appeal. In its December 31, 2004, balance sheet, Halsey should report what amounts of asset and liability related to these legal actions?

Question 9 

Which of the following is not a contingent liability under international accounting standards?

Question 10    

Based on preliminary discussions with a foreign customer, Alcoco, a U.S. entity, budgeted a significant sale to the foreign entity denominated in its foreign currency expected in June 2009. To hedge the risk of an adverse exchange rate change on the dollar value of the expected sale, on January 2, 2009, Alcoco entered into a forward exchange contract to sell an amount of the foreign currency equal to the expected sale. On March 31, 2009, the value of the expected sale amount in dollars had decreased by $3,800. The fair value of the forward contract at that date had increased by $4,000. Which one of the following is the amount that should be recognized in other comprehensive income for the forward contract only (the hedging instrument) in Alcoco's quarterly financial statements as of March 31?

Question 11 

Ute Co. had the following capital structure during 2004 and 2005: Preferred stock is not considered a common stock equivalent. Ute reported net income of $500,000 for the year ended December 31, 2005. Ute paid no preferred dividends during 2004 and paid $16,000 in preferred dividends during 2005. In its December 31, 2005, income statement, what amount should Ute report as earnings per share?

Question 12 

A manufacturer of household appliances may incur a loss due to the discovery of a defect in one of its products. The occurrence of the loss is reasonably possible and the resulting costs can be reasonably estimated. This possible loss should be

Question 13    

A hedge to offset the risk of loss on a recognized asset or liability is which of the following types of hedge?

Question 14 

Envoy Co. manufactures and sells household products. Envoy experienced losses associated with its small appliance group. Operations and cash flows for this group can be clearly distinguished from the rest of Envoy's operations. Envoy plans to sell the small appliance group with its operations. What is the earliest point at which Envoy should report the small appliance group as a discontinued operation?

Question 15    

An extraordinary gain should be reported as a direct increase to which of the following?

Question 16    

Poe Co. had 300,000 shares of common stock issued and outstanding at December 31, 2004. No common stock was issued during 2005.On January 1, 2005, Poe issued 200,000 shares of nonconvertible preferred stock. During 2005, Poe declared and paid $75,000 cash dividends on the common stock and $60,000 on the preferred stock. Net income for the year ended December 31, 2005 was $330,000. What should be Poe's 2005 earnings per common share?

Question 17 

On December 1, 2005, Clay Co. declared and issued a 6% stock dividend on its 100,000 shares of outstanding common stock. There was no other common stock activity during 2005. What number of shares should Clay use in determining earnings per share for 2005?

Question 18    

Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. The loss accrual should be

Question 19 

On September 1, 2005, Cano & Co., a U.S. corporation, sold merchandise to a foreign firm for 250,000 francs. Terms of the sale require payment in francs on February 1, 2006. On September 1, 2005, the spot exchange rate was $.20 per franc. At December 31, 2005, Cano's year end, the spot rate was $.19, but the rate increased to $.22 by February 1, 2006, when payment was received. How much should Cano report as a foreign exchange gain or loss in its 2006 income statement?

Question 20 

During 2005, Rex Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following sale and 4% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2005 and 2006 are as follows: At December 31, 2006, Rex should report an estimated warranty liability of

Question 1 

Which of the following should be disclosed for each reportable operating segment of an enterprise?

Question 2 

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for

Question 3      

Ace Co. settled litigation on February 1, 2005 for an event that occurred during 2004. An estimated liability was determined as of December 31, 2004. This estimate was significantly less than the final settlement. The transaction is considered to be material. The financial statements for year-end 2004 have not been issued. How should the settlement be reported in Ace's year-end 2004 financial statements?

Question 4      

When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an operating lease?

Question 5 

In a sale-leaseback transaction, a gain resulting from the sale should be deferred at the time of the sale-leaseback and subsequently amortized when I. The seller-lessee has transferred substantially all the risks of ownership. II. The seller-lessee retains the right to substantially all of the remaining use of the property.

Question 6 

The following information pertains to a sale and leaseback of equipment by Mega Co. on December 31, 2005: What amount of deferred gain on the sale should Mega report at December 31, 2005?

Question 7      

On August 1, 2005, Metro, Inc. leased a luxury apartment unit to Klum. The parties signed a 1-year lease beginning September 1, 2005 for a $1,000 monthly rent payable on the first day of the month. At the August 1 signing date, Metro collected $540 as a nonrefundable fee for allowing Klum to sign a 1-year lease (the normal lease term is three years) and $1,000 rent for September. Klum has made timely payments each month, but prepaid January's rent on December 20. In Metro's 2005 income statement, rent revenue should be reported as

Question 8 

On January 1 of the current year, Tell Co. leased equipment from Swill Co. under a nine-year sales-type lease. The equipment had a cost of $400,000 and an estimated useful life of 15 years. Semiannual lease payments of $44,000 are due every January 1 and July 1. The present value of lease payments at 12% was $505,000, which equals the sales price of the equipment. Using the straight-line method, what amount should Tell recognize as depreciation expense on the equipment in the current year?

Question 9      

A twenty-year property lease, classified as an operating lease, provides for a 10% increase in annual payments every five years. In the sixth year compared to the fifth year, the lease will cause the following expenses to increase

Question 10 

Gei Co. determined that, due to obsolescence, equipment with an original cost of $900,000 and accumulated depreciation at January 1, 2004 of $420,000 had suffered permanent impairment, and as a result should have a carrying value of only $300,000 as of the beginning of the year. In addition, the remaining useful life of the equipment was reduced from 8 years to 3. In its December 31, 2004 balance sheet, what amount should Gei report as accumulated depreciation?

Question 11 

Dahl Co. traded a delivery van and $5,000 cash for a newer van owned by West Corp. Assume there is no commercial substance to the exchange. The following information relates to the values of the vans on the exchange date: Dahl's income tax rate is 30%. What amounts should Dahl report as gain on exchange of the vans?

Question 12 

On July 1, 2004, Balt Co. exchanged a truck for 25 shares of Ace Corp.'s common stock. Assume commercial substance.On that date, the truck's carrying amount was $2,500, and its fair value was $3,000. Also, the book value of Ace's stock was $60 per share. On December 31, 2004, Ace had 250 shares of common stock outstanding and its book value per share was $50. What amount should Balt report in its December 31, 2004, balance sheet as investment in Ace?

Question 13 

On December 31, 2004, a building owned by Carr, Inc. was destroyed by fire. Carr paid $12,000 for removal and cleanup costs. The building had a book value of $250,000 and a fair value of $280,000 on December 31, 2004. What amount should Carr use to determine the gain or loss on this involuntary conversion?

Question 14 

On July 1, 2005, Glen Corp. leased a new machine from Ryan Corp. The lease contains the following information: No bargain purchase option is provided, and the machine reverts to Ryan when the lease expires. What amount should Glen record as a capitalized leased asset at inception of the lease?

Question 15 

Scott Co. exchanged nonmonetary assets with Dale Co. No cash was exchanged. There is commercial substance to the exchange. The carrying amount of the asset surrendered by Scott exceeded both the fair value of the asset received and Dale's carrying amount of that asset. Scott should recognize the difference between the carrying amount of the asset it surrendered and

Question 16 

Lease A does not contain a purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases?

Question 17    

On December 31, 2005, Bit Co. had capitalized costs for a new computer software product with an economic life of five years. Sales for 2006 were 30 percent of expected total sales of the software. At December 31, 2006, the software had a net realizable value equal to 90 percent of the capitalized cost. What percentage of the original capitalized cost should be reported as the net amount on Bit's December 31, 2006 balance sheet?

Question 18 

On January 1, 2001, Babson, Inc. leased two automobiles for executive use. The lease requires Babson to make five annual payments of $13,000 beginning January 1, 2001. At the end of the lease term, December 31, 2005, Babson guarantees the residual value of the automobiles will total $10,000. The lease qualifies as a capital lease. The interest rate implicit in the lease is 9%. Present value factors for the 9% rate implicit in the lease are as follows: Babson's recorded capital lease liability immediately after the first required payment should be

Question 19 

YIV Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. YIV should report segment financial information for each division meeting which of the following criteria?

Question 20 

Brill Co. made the following expenditures during 2004: What amount of these expenditures should Brill report in its 2004 income statement as research and development expenses?

Question 1      

Which of the following is a required financial statement for an investment trust fund?

Question 2      

Taxes collected and held by Franklin County for a separate school district would be accounted for in which fund?

Question 3      

During the past fiscal year, Arnett County recorded the following transactions: Receipt of $36,000 of intergovernmental revenues which must be used to provide medical assistance to victims of natural disasters. Investment earnings of $5,000 from an endowment established by the local Lions Club to subsidize summer camp for the Boy Scouts with demonstrated financial need. $3,000,000 in proceeds from revenue bonds. How much money from these transactions should Arnett record in Special Revenue funds?

Question 4 

What is the basic criterion used to determine the reporting entity for a governmental unit?

Question 5      

State University received two contributions during the year that must be used to provide scholarships. Contribution A for $10,000 was collected during the year, and $8,000 was spent on scholarships. Contribution B is a pledge for $30,000 to be received next fiscal year. What amount of contribution revenue should the university report in its statement of activities?

Question 6                  

On January 2, City of Walton issued $500,000, 10-year, 7% general obligation bonds. Interest is payable annually, beginning January 2 of the following year.What amount of bond interest is Walton required to report in the statement of revenue, expenditures, and changes in fund balance of its governmental funds at the close of this fiscal year, September 30?

Question 7      

Hospital, Inc., a not-for-profit organization with no governmental affiliation, reported the following in its accounts for the current year ended December 31: What amount would the hospital report as net patient service revenue in its statement of operations for the current year ended December 31?

Question 8 

The encumbrance account of a governmental unit is debited when

Question 9      

The following revenues were among those reported by Ariba Township in 2005: What amount of the foregoing revenues should be accounted for in Ariba's governmental-type funds?

Question 10 

Todd City formally integrates budgetary accounts into its general fund. Todd uses an internal service fund to account for the operations of its data processing center, which provides services to Todd's other governmental units. During the year ended December 31, 2005, Todd received a state grant to buy a bus, and an additional grant for bus operation in 2005. In 2005, only 90% of the capital grant was used for the bus purchase, but 100% of the operating grant was disbursed. Todd has incurred the following long-term obligations: General obligation bonds issued for the water and sewer fund which will service the debt. Revenue bonds to be repaid from admission fees collected from users of the municipal recreation center. These bonds are expected to be paid from enterprise funds, and secured by Todd's full faith, credit, and taxing power as further assurance that the obligations will be paid. Todd's 2005 expenditures from the general fund include payments for structural alterations to a firehouse and furniture for the mayor's office. In Todd's general fund balance sheet presentation at December 31, 2005, which of the following expenditures should be classified as fixed assets?

Question 11 

On March 2, 2004, Finch City issued 10-year general obligation bonds at face amount, with interest payable March 1 and September 1. The proceeds were to be used to finance the construction of a civic center over the period April 1, 2004, to March 31, 2005.During the fiscal year ended June 30, 2004, no resources had been provided to the debt service fund for the payment of principal and interest. On June 30, 2004, Finch's debt service fund should include interest payable on the general obligation bonds for

Question 12 

A company used the percentage-of-completion method of accounting for a four-year construction contract. Which of the following items would be used to calculate the income recognized in the second year?

Question 13 

During 2004, Mitchell Corp. started a construction job with a total contract price of $600,000. The job was completed on December 15, 2005. Additional data are as follows: Under the completed contract method, what amount should Mitchell recognize as gross profit for 2005?

Question 14 

Which of the following would be reported as program revenues on a local government's government-wide statement of activities?

Question 15 

Alinas County manages an endowment of $500,000, the earnings from which are required to be used to maintain the walking trails in the county parks. During the year, the endowment received $20,000 in investment earnings, $3,000 of which was related to earnings from the previous year which were not received 80 days after the fiscal year end. At the end of the year, the market value of the endowment was $510,000. In its fund-based financial statements, how much should the County recognize in conjunction with this endowment?

Question 16 

A state or local government should not have multiple funds in which of the following fund categories?

Question 17 

The governmental fund measurement focus is on the determination of

Question 18 

A not-for-profit voluntary health and welfare organization received a $500,000 permanent endowment. The donor stipulated that the income must be used for a mental health program. The endowment fund reported $60,000 net decrease in market value and $30,000 investment income.The organization spent $45,000 on the mental health program during the year. What amount of change in temporarily restricted net assets should the organization report?

Question 19 

A not-for-profit voluntary health and welfare organization received a $500,000 permanent endowment. The donor stipulated that the income must be used for a mental health program. The endowment fund reported $60,000 net decrease in market value and $30,000 investment income. The organization spent $45,000 on the mental health program during the year. What amount of change in temporarily restricted net assets should the organization report?

Question 20 

Lema Fund, a voluntary welfare organization funded by contributions from the general public, received unrestricted pledges of $200,000 during 2005. It was estimated that 10% of these pledges would be uncollectible. By the end of 2005, $130,000 of the pledges had been collected. It was expected that $50,000 more would be collected in 2006 and that the balance of $20,000 would be written off as uncollectible. What amount should Lema include under public support in 2005 for net contributions?

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ACC 577 Week 8 Assignment 1 Emerging Issues Task Force   Assignment 1: Emerging Issues Task Force     Review the Emerging Issues Task Force (EITF) on the FASB Website, located at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1218220137512. Next, review t..
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All Questions Details given below (Please Check)   ACC 577 Final Exam Study Question 1       At the time Company P acquired controlling interest of Company S the following accounts and balances existed on the books of the two companies: Whic..
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