ACCT 312 Midterm Exam – Question and Answers


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ACCT 312 Midterm Exam – Question with Answers

Essay Question and Answers

1.Please describe temporary differences and provide five examples.

2. What are the components of pension expense? Be sure to indicate if each component increases or decreases pension expense.

3. What are the two ways for a company to reacquire stock? Please also discuss when a company reacquires stock and whether there is a difference between the amounts the shares were originally sold for and the cash paid to buy the shares back.

4. What are the characteristics of a stock award plan? Is the stock restricted? What rights does the employee have? What generally happens when the employees leave the company? acct 312 midterm exam

Multiple Choice Question and Answers

Question 1. (TCO 1) Which creates a deferred tax liability?

Question 2. (TCO 1) A deferred tax asset represents a

Question 3. (TCO 2) Pension expense is decreased by

Question 4. (TCO 2) An overfunded pension plan means that the

Question 5. (TCO 3) According to GAAP, accounting for postretirement benefits other than pensions must adhere to the

Question 6. (TCO 4) Retained earnings represents a company’s

Question 7. (TCO 4) Any dividend that is consider to be a liquidating dividend will

Question 8. (TCO 5) The compensation associated with executive stock option plans is acct 312 midterm exam

Question 9. (TCO 5) Our company offered an incentive stock option plan to its employees. On January 1, 20X1, options were …..for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be ……before January 1, 20X3, and expire December 31, 20X5. Each option has a fair value of $2 based on an option pricing model. Which is the total compensation cost for this plan?

Question 10. (TCO 6) Our company declared and paid cash dividends to its common shareholders in February of the current year. The dividend

Question 11. (TCO 6) Basic earnings per share is computed using.acct 312 midterm exam