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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