Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.) A. Fair Value Adjustment G. Available-for-sale debt securities B.Statement of Cash Flows H. Equity holdings between 20% and 5% C. Trading debt securitiesI. Temporary differences, deferred tax asset D. Equity holdings less than 20% J. Permanent differences E. Held-to-maturity debt securities K. Temporary differences, deferred tax liability F. Statute of Limitations L. Equity holdings more than 50% 1. Premiums paid on life insurance of officers (company is the beneficiary). 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned . 3. Consolidation of financial statements; parent and subsidiary company income or loss combined. 4. Estimated future warranty costs . 5. Represents the increase in taxes refundable (or saved) in future yearsas a result of deductible temporary differences existing at the end of the current year. 6. Comparative balance sheets . 7. Fair value; interest is recognized as revenue; unrealized holding gains and losses are not recognized in income but in other comprehensive income, as a separate component of stockholder’s equity . 8. Long-term construction contracts . 9. Installment sales . 10. Operating, Investing and Financing activities. 11. Excess tax depreciation over accounting depreciation . 12. Result from items that (1) enter into pretax financial income but never into taxable income or (2) enter into taxable income but never into pretax financial income.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 14E

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Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)

A. Fair Value Adjustment G. Available-for-sale debt securities

B.Statement of Cash Flows H. Equity holdings between 20% and 5%

C. Trading debt securitiesI. Temporary differences, deferred tax asset

D. Equity holdings less than 20%

J. Permanent differences

E. Held-to-maturity debt securities

K. Temporary differences, deferred tax liability

F. Statute of Limitations

L. Equity holdings more than 50%

1. Premiums paid on life insurance of officers (company is the beneficiary).

____ 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned

.____ 3. Consolidation of financial statements; parent and subsidiary company income or loss combined.

____ 4. Estimated future warranty costs

.____ 5. Represents the increase in taxes refundable (or saved) in future yearsas a result of deductible temporary differences existing at the end of the current year.

____ 6. Comparative balance sheets

.____ 7. Fair value; interest is recognized as revenue; unrealized holding gains and losses are not recognized in income but in other comprehensive income, as a separate component of stockholder’s equity

.____ 8. Long-term construction contracts

.____ 9. Installment sales

.____ 10. Operating, Investing and Financing activities.

____ 11. Excess tax depreciation over accounting depreciation

.____ 12. Result from items that (1) enter into pretax financial income but never into taxable income or (2) enter into taxable income but never into pretax financial income.

___ 13. Fair value valuation; dividends are recognized as revenue – unrealized holding gains or losses are included in net income.

____ 14. Fair value; unrealized holding gains or losses recognized in net income; interest when earned.

____ 15. Represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.

____ 16. Expenses incurred in obtaining tax-exempt revenue.

____ 17. Advance rental receipts.

____ 18. Direct method and indirect method.

____ 19. Fine for polluting.

____ 20. Equity method; investments recorded at cost, periodically adjusted for share of investee’s income or loss, and decreased by dividends received from the investee, subsequent to investment date.

____ 21. Affect only the period in which they occur; they do not give rise to future taxable or deductible amounts; there are no deferred tax consequences to be recognized

.____ 22. Litigation accruals.

____ 23. Investments accounted for by the equity method (ignore dividends received deduction) for financial reporting purposes but deferred for tax purposes.

____ 24. Adjustment of portfolio to fair value - unrealized gain or loss

___ 25. Change in cash.

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