The cash and securities comprising a sinking fund established to redeem bonds at maturity in 2015 should be classified on the balance sheet as
A) fixed assets
B) current assets
C) intangible assets
D) investments
D
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Which of the following is least useful in evaluating a company's financial statements?
a. Comparison with government economic data for the economy as a whole b. Comparison with other companies in the same industry c. Comparison of the company's current period data with accounting data from 5 years ago d. Comparison of the company's current period data with that of the last year
During its first year of operations, 2016, the Cocoa Company reported both a pretax financial and a taxable loss of $300,000. The income tax rate is 30% for the current and future years. Due to a sufficient backlog of sales orders, Cocoa did not establish a valuation allowance to reduce the $90,000 deferred tax asset. However, early in 2017, one major customer, representing 60% of the 2017
year-end sales backlog, went bankrupt. Cocoa now believes that it is more likely than not that 75% of the deferred tax asset will not be realized. The entry to record the valuation allowance would be A) Income Tax Expense 67,500Deferred Tax Asset 67,500 B) Income Tax Benefit from OperatingLoss Carryforward 67,500Deferred Tax Asset 67,500 C) Income Tax Expense 67,500Allowance to Reduce DeferredTax Asset to Realizable Value 67,500 D) Allowance to Reduce Deferred TaxAsset to Realizable Value 67,500Income Tax Expense 67,500
In the State Street case discussed in the text, what change was made to patent law?
A) Invention promoters were determined to be liable to inventors for damages caused. B) Computerized online business operating plans and arrangements were determined to be eligible for patent protection. C) Copyright protection was extended to previously noncopyrighted works once they are available over the Internet. D) Patent protection was determined to apply during the provisional period.
Which of the following financial statements reports cash receipts and cash payments during a period of time?
A) Statement of cash flows B) Balance sheet C) Cash receipts budget D) Statement of retained earnings