Accountıng Iı

Yanıt Açıklaması: Face value is the amount written on a debt security to be paid by issuer upon delivery at maturity date. The correct answer is A.

Yanıt Açıklaması: Amortization Expense=3.500.000X(1/5)=700.000

Yanıt Açıklaması: Assets are defined as the economic resources acquired by the business in order to benefit from them in the future. In fact, there is an expectation for the businesses to use the assets in their operations. Some of these assets can be converted into cash, sold, collected and consumed within one year or operation cycle which is shorter but some of the assets will be used in operations for more than a year. The first group of assets are called current assets whereas the latter is called non-current assets (long-term assets). Non-current assets are the assets that are acquired to use in the operations of the business for several years. Besides these assets, receivables that have due dates of more than one year will also be reported under non-current assets. In this chapter we will focus on Property, Plant and Equipment which generally holds the largest portion in noncurrent assets. The correct answer is D.

Yanıt Açıklaması: Amortization Rate= 1/Patent’ s Useful Life = 1/5 Amortization Expense = 300,000 x 1/5 = 60,000 TL The correct answer is B.

Yanıt Açıklaması: Intangible assets are a unique kind of non-current assets that provide certain legal rights, privileges, and competitive advantages to the business1. Intangible assets don’t have a physical substance or form unlike property, plant and equipment assets. Instead, intangible assets convey special rights from patents, copyrights, licenses, trademarks, etc. and other inventive works. Besides these, intangible assets also include pre-operating costs, research and development costs and leasehold improvements. Intangible assets have distinctive qualifications from other assets that require them to be recorded as intangible asset. These are; • They have a value for a specific company • Some of them have unlimited life • Their values fluctuate highly because their benefits are based on competition. The correct answer is D.

Yanıt Açıklaması: Capitalization means recording the expenditure as an asset. In this respect, except for C, those given in other options are a capital expenditure.

Yanıt Açıklaması: The current liabilities are obligations that will be paid out of current assets and are due within a short time, usually within one year. Current liabilities represent the nature and amounts of outflow of economic benefits from the company in order to fulfill existing obligations in the following fiscal year (one year or operating cycle). Current liabilities include short-term bank loans, current portions of long-term bank loans, accounts payable, notes payable, accruals etc. Current liabilities are listed on the balance sheet in the order in which they are due. The correct answer is D.

Yanıt Açıklaması: Depending on their maturities, liabilities can be split into two main categories as “current liabilities (short term liabilities)” and “non-current liabilities (long term liabilities)”. The current liabilities are obligations that will be paid out of current assets and are due within a short time, usually within one year. Current liabilities represent the nature and amounts of outflow of economic benefits from the company in order to fulfill existing obligations in the following fiscal year (one year or operating cycle). Current liabilities include short-term bank loans, current portions of long-term bank loans, accounts payable, notes payable, accruals etc. Current liabilities are listed on the balance sheet in the order in which they are due. The correct answer is C.

Yanıt Açıklaması: The primary objective of temporary investments is to: 1. earn interest revenue. 2. receive dividends. 3. realize gains from increases in the market price of the securities. The correct answer is E.

Yanıt Açıklaması: Depletion per Unit=  Cost-Residual Value / Total Estimated Units Available Depletion Expense=Depletion per Unit x Yearly Extracted Quantity Depletion per Unit : 40000-0 / 80000 : 0,5 Depletion Expense: 0,5 x 20000 : 10000 The correct answer is C.

Yanıt Açıklaması: Income statement of AOF Corp. (investee) represents 250,000 TL net income for 2019, meaning an increase in equity by 250,000 TL. Since Anadolu Co. owns 20% of AOF Corp., the value of affiliate account in balance sheet of Anadolu Co. has also increased by 50,000 TL (20% x 250,000 TL). Then, the required entry is: Debit: Affiliates - 30,000 Credit: Revenue from Affiliates - 30,000

Yanıt Açıklaması: The correct answer is B. Securities are reported with their amortized costs in the financial statements instead of their fair (market) values. Because the amounts of premium or discount represent the difference between the face value and the purchase price. These amounts are amortized during the life of security (until maturity), so that the total initial profit or loss (difference between purchase price paid and face value to be received at the end) is allocated to each period.

Yanıt Açıklaması: Leasehold Improvements account is only used for rented assets.

Yanıt Açıklaması: Patents are government grants given to the holder for invention in all fields of technology providing that the invention is new, involves an inventive step and is applicable to industry

Yanıt Açıklaması: I there are no contracts for the right, then the amortization duration will be five years by default.

Yanıt Açıklaması: Depletion per unit= =30.000/500.000= 0.06 Ton Depletion Expense =0.06 x 450.000 tons= 27.000 TL

Yanıt Açıklaması: They are not acquired for resale.

Yanıt Açıklaması: Goodwill is an intangible asset. Other elements given in the case are tangible assets.

Yanıt Açıklaması: Derivatives are the contracts that provide payoffs to investors depending on the values of other assets that they are derived from. The correct answer is C.

Yanıt Açıklaması: Goodwill is not subject to a decreasing book value through depreciation, depletion, or amortization.