Questions from Intermediate Accounting

Q: (a) When computing the price to be paid for a

(a) When computing the price to be paid for a debt security, the stated rate of interest is used to determine what value? (b) How does the market or effective rate affect a debt security’s value?

Q: Unguaranteed residual values accrue to the lessor at the expiration of the

Unguaranteed residual values accrue to the lessor at the expiration of the lease. How are these values treated in a sales-type lease?

Q: What lease accounting proposal has been circulating among the members of the

What lease accounting proposal has been circulating among the members of the international accounting community?

Q: What is meant by refinancing or refunding a bond issue? When

What is meant by refinancing or refunding a bond issue? When may refinancing be advisable?

Q: What is meant by postretirement benefits, and what is the primary

What is meant by postretirement benefits, and what is the primary issue in accounting for their costs?

Q: Briefly explain the “fair value option.”

Briefly explain the “fair value option.”

Q: Distinguish between taxable temporary differences and deductible temporary differences, and give

Distinguish between taxable temporary differences and deductible temporary differences, and give at least two examples of each type.

Q: What is the full eligibility date, and why is it an

What is the full eligibility date, and why is it an important date in accounting for postretirement benefits?

Q: (a) What is meant by executory contract? (

(a) What is meant by executory contract? (b) Do these contracts fit the definition of liabilities included in this chapter?

Q: The sales manager for Off-Road Enterprises is entitled to a

The sales manager for Off-Road Enterprises is entitled to a bonus equal to 12% of profits. What difficulties may arise in the interpretation of this profit-sharing agreement?