NO.194 Which of the following best describes the lessee’s accounting for operating and finance leases?
Operating
Finance
Not capitalized
Capitalized
Capitalized
Capitalized
Not capitalized
Not capitalized
Capitalized
Not capitalized

NO.195 At December 31, Year 1, an entity had the following equity accounts:

Each of the 40,000 ordinary shares outstanding was issued at a price of US $26. On January 2, Year 2, 2,000 shares were reacquired for US $30 per share. The cost method is used in accounting for these treasury shares. Which of the following correctly describes the effect of the acquisition of the treasury shares?

NO.196 An entity issues 10-year bonds with a face amount of US $1 million, dated January 1,
Year 1, and bearing interest at an annual rate of 12% payable semiannually on January 1 and July 1 The full interest amount will be paid each due date. The market rate of interest on bonds of similar risk and maturity, with the same schedule of interest payments, is also 12%. If the bonds are issued on February 1, Year 1, the amount the issuing entity receives from the buyers of the bonds on that date is:

NO.197 Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford’s product are available for the year just ended:

Fulford plans to increase unit sales to 80,000 by reducing the product’s unit price to US $320.
If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?

NO.198 Which of the following techniques would best detect on inventory fraud scheme?

NO.199 According to eSAC, accountability is:

NO.200 A retrospective voluntary change in an accounting policy in the current period should be accounted for in comparative reports by:

NO.201 Philip Enterprises, distributor of compact disks (CDs), is developing its budgeted cost of goods sold. Philip has developed the following range of sales estimates and associated probabilities for the year:

Philip’s cost of goods sold averages 80% of sales. What is the expected value of Philip’s budgeted cost of goods sold?

NO.202 A firm buys like-new computer equipment from bankrupt companies and resells it in foreign markets at prices significantly below those charged by competitors. The firm is:

NO.203 Which of the following computer hardware devices allows for an immediate update of merchandise inventory in a retail environment?

NO.204 The publisher of a popular magazine offers a special discounted price for a 3-year subscription. At the balance sheet date, the amount that has already been collected but pertains to future periods is best referred to as:

NO.205 Quality control circles are now used all over the world. The circles typically consist of a group of five to ten employees who meet regularly. The primary goal of these circles is to:

NO.206 During which of the following phases of contracting does the organization analyze whether the market is aligned with organizational objectives?

NO.207 Which of the following is useful for forecasting the required level of inventory?
1.Statistical modeling.
2.Information about seasonal variations in demand.
3.Knowledge of the behavior of different business cycles.
4.Pricing models linked to seasonal demand.

NO.208 Which of the following performance measures disincentives engaging in earnings management?

NO.209 Which of the following statements is true concerning the basic accounting treatment of a partnership?

NO.210 Which of the following is a strategy that organizations can use to stimulate innovation?
1.Source from the most advanced suppliers.
2.Establish employee programs that reward initiative.
3.Identify best practice competitors as motivators.
4.Ensure that performance targets are always achieved.

NO.211 A bank is developing a computer system to help evaluate loan applications. The information systems IS staff interview the bank’s mortgage underwriters to extract their knowledge and decision processes for input into the computer system. The completed system should be able to process information the same as do the underwriters and make final recommendations regarding loan decisions. This approach is called:

NO.212 A sound justification for an entity’s repurchase of its own shares e.g. treasury shares) is to:

NO.213 An entity is currently being sued by a customer. A reliable estimate can be made of the costs that would result from a ruling unfavorable to the entity, and the amount involved is material. The entity’s managers, lawyers, and auditors agree that the likelihood of an unfavorable ruling is remote. This contingent liability:

NO.214 Which of the following controls would be the most effective in preventing the disclosure of an organization’s confidential electronic information?