51) Which of the following sets of conditions would give rise to the
accrual of a contingency under current generally accepted accounting
principles?
52) If bonds are issued initially at a premium and the effective-interest
method of amortization is used, interest expense in the earlier years
will be
53) An example of an item which is NOT a liability is
54) The covenants and other terms of the agreement between the
issuer of bonds and the lender are set forth in the
55) Which of the following is a correct statement of one of the
capitalization criteria?
56) Which of the following best describes current practice in
accounting for leases?
57) While only certain leases are currently accounted for as a sale or
purchase, there is theoretic justification for considering all leases to be
sales or purchases. The principal reason that supports this idea is that
58) The amount to be recorded as the cost of an asset under capital
lease is equal to the
59) In the earlier years of a lease, from the lessee's perspective, the
use of the
60) If the residual value of a leased asset is guaranteed by a third
party
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ACC 422 Week 1 CPA Practice Exam
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1. What amount should Herc report as inventory in its December 31,
2005, balance sheet?
2. What dollar-value LIFO inventory cost would be reported in Cobb's
December 31, 2006, balance sheet?