ACC 422 Expect Success/uophelp.com ACC 422 Expect Success/uophelp.com | Page 36

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 =============================================== ACC 422 Week 1 CPA Practice Exam For more course tutorials visit www.uophelp.com 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?