This Tutorial contains 4 Sets (All Question Listed below)   ACC 499 Midterm Part 1 (Set 1) ACC 499 Midterm Part 1 Question 1 Which of the following is not a required disclosure by a lessee of an operating lease? Question 2 Which of the following facts would require a lessee to classify a lease as a capital lease? Question 3 When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 4 FASB’s rules concerning leases are an attempt to record in the financial statements Question 5 As a generalized statement regarding lease accounting, which statement best describes U.S. versus international accounting principles? Question 6 The account Unearned Interest: Leases should be reported on the lessor’s financial statements as Question 7 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 8 A direct financing lease differs from a sales-type lease in that Question 9 A capital lease should be recorded in the lessee’s accounts at the inception of the lease in an amount equal to Question 10 When a lessee makes periodic cash payments for an operating lease, which of the following accounts is increased? Question 11 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 12 A lease will be treated as a direct financing lease by the lessor when Question 13 The corporate form of organization is important to the U.S. economy because Question 14 The authorized shares of capital stock is the number of shares Question 15 In the financial statements, dividends in arrears on cumulative preferred stock should be Question 16 In accounting for a stock split, a company usually Question 17 Which of the following types of corporations is owned or operated by a government unit? Question 18 Under the fair value method, the grant date is the date Question 19 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 20 Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract? Question 21 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the Question 22 Which set of accounting principles directly uses the term “reserve”? Question 23 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 24 A corporation is a legal entity Question 25 Preferred stockholders share with common stockholders in any “extra” dividends when the preferred stock is ACC 499 Midterm Part 1 (Set 2) Question 1 Minimum lease payments do not include Question 2 A direct financing lease differs from a sales-type lease in that Question 3 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is increased? Question 4 Executory costs Question 5 On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company’s property, plant, and equipment leased to others is Question 6 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 7 When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 8 Which of the following is not a required disclosure by a lessee of an operating lease? Question 9 Which of the following facts would require a lessee to classify a lease as a capital lease? Question 10 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is decreased? Question 11 Which of the following is not a required disclosure by a lessor of a sales-type lease? Question 12 A capital lease should be recorded in the lessee’s accounts at the inception of the lease in an amount equal to Question 13 When stock options are exercised by an employee under a compensatory stock option plan, the issuance of the common stock is recorded at the Question 14 Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n) Question 15 Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract? Question 16 Preferred stockholders share with common stockholders in any “extra” dividends when the preferred stock is Question 17 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 18 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 19 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 20 For stock appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is Question 21 Dividends in arrears pertain to Question 22 A non compensatory stock option plan is designed to Question 23 The corporate form of organization is important to the U.S. economy because Question 24 The preference to dividends that preferred stockholders have is Question 25 A corporation is a legal entity ACC 499 Midterm Part 1 (Set 3) Review Test Submission: Midterm Exam Part 1 Question 1 The account Unearned Interest: Leases should be reported on the lessor’s financial statements as Question 2 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 3 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 4 When a lessor receives cash on an operating lease, which of the following accounts is increased? Question 5 A capital lease should be recorded in the lessee’s accounts at the inception of the lease in an amount equal to Question 6 Which is an advantage of leasing from a lessee’s viewpoint? Question 7 The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as Question 8 When is it appropriate for the lessee to use the lessor’s implicit rate to discount the minimum lease payments? Question 9 Minimum lease payments do not include Question 10 A direct financing lease differs from a sales-type lease in that Question 11 Executory costs Question 12 Depreciation expense will be recorded in the accounts of the Question 13 Which set of accounting principles directly uses the term “reserve”? Question 14 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to Question 15 Dividends in arrears pertain to Question 16 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a non compensatory stock option plan is recorded by the corporation at the Question 17 The value assigned to stock warrants for a non compensatory stock option plan is calculated as Question 18 The corporate form of organization is important to the U.S. economy because Question 19 A corporation whose stock is traded on a stock exchange is called a(n) Question 20 The accounting method that is used for stock appreciation rights (SARs) compensation plans is similar to the accounting procedures that can be used for Question 21 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 22 The authorized shares of capital stock is the number of shares Question 23 Universities, hospitals, and churches are examples of which type of corporation? Question 24 In accounting for a stock split, a company usually Question 25 A non compensatory stock option plan is designed to ACC 499 Midterm Part 1 (Set 4) Question 1 In a sales-type lease Question 2 When is it appropriate for the lessee to use the lessor’s implicit rate to discount the minimum lease payments? Question 3 When a lessee makes periodic cash payments for a capital lease, which of the following accounts is decreased? Question 4 The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as Question 5 FASB’s rules concerning leases are an attempt to record in the financial statements Question 6 When a lessor receives cash on a sales-type lease, which of the following accounts is decreased? Question 7 A capital lease should be recorded in the lessee’s accounts at the inception of the lease in an amount equal to Question 8 In a sales-leaseback transaction Question 9 On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company’s property, plant, and equipment leased to others is Question 10 Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 11 Any initial direct costs incurred by the lessor for a sales-type lease should be Question 12 Which of the following is not a required disclosure by a lessee of an operating lease? Question 13 A corporation is a legal entity Question 14 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation? Question 15 The value assigned to stock warrants for a noncompensatory stock option plan is calculated as Question 16 A noncompensatory stock option plan is designed to Question 17 For stock appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is Question 18 The authorized shares of capital stock is the number of shares Question 19 A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the Question 20 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the Question 21 When stock options are exercised by an employee under a compensatory stock option plan, the issuance of the common stock is recorded at the Question 22 Preferred stockholders share with common stockholders in any “extra” dividends when the preferred stock is Question 23 In accounting for a stock split, a company usually Question 24 Which of the following types of corporations is owned or operated by a government unit? Question 25 The corporate form of organization is important to the U.S. economy because

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