Test your basic knowledge |

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The subsequent event evaluation period extends through the date that the financial statements are issued (public companies) or the date that the financial statements are available to be issued (all other entities). Subsequent events are classified as






2. All gains and losses included in OCI






3. Enacted tax rate only.






4. Revenue recognized when realized or realizable and earned. Four criteria must be met for each element of a contract before revenue can be recognized: persuasive evidence of an arrangement exists - delivery has occurred or services have been rendered






5. Components of net periodic pension cost must be aggregated and presented as one amount on the income statement.






6. Either does not have equity investors with voting rights or lacks sufficient financial resources to support its activities. Primary beneficiary must consolidate the VIE. The primary beneficiary is the entity that has the power to direct the activitie






7. Entities may elect the fair value option for recognized financial assets and financial liabilities. You cannot elect fair value on these: (1) VIE that is required to be consolidated (2) pension plan assets/liabilities (3) leased financial assets/liab






8. Components of net periodic pension cost are SIRAGE: service cost - interest cost - return on plan assets - amortization of prior service cost - gain/loss amortization - existing net obligation/asset amortization.






9. (Balance sheet - income statement - SOCF) as of the most recent fiscal quarter and as of the end of the preceding fiscal year.






10. Entities cannot apply the FASB conceptual framework to specific accounting issues






11. Not required to match consumption. No requirement to review method - life - or salvage value at year end. Can use composite or component depreciation.






12. Recorded as an asset and amortized using the straight-line method.






13. If year of change - all previous financial statements that are presented in comparative format along with the current year are to be restated to reflect the information for the new reporting entity.






14. No requirement for disclosure of key management compensation arrangements.






15. Probable is defined as likely to occur and reasonably possible is defined as more likely than remote - but less than likely.






16. Funded status is reported of an overfunded pension plan is reported in full as a noncurrent asset. Underfunded plans are reported as current - non-current - or both.






17. Interest and dividends received - interest paid and taxes paid are CFO. Dividends paid are classified as CFF.






18. Valuation allowance is recognized when it is more likely than not that part or all of the deferred tax asset will not be realized.






19. Characterized as having commercial substance and lacking commercial substance. Commercial substance (accounted for at fair value and all gains are recognized). Lacking commercial substance (gains are only recognized when boot is received). Losses are






20. Functional currency is the currency of the entity's primary economic environment. Local currency is functional currency when foreign operations are relatively self-contained within that country.






21. Existing condition - situation - or set of circumstances involving varying degrees of uncertainty that may result in the decrease in an asset or the incurrence of a liability. A provision for a loss contingency should be accrued with a charge to inco






22. Costs before technological feasibility must be expensed - costs after technological feasibility are capitalized.






23. No classification






24. If year-end differs by three months or less - parent can use the subsidiary's regular financial statements of a different period - but they must be significantly disclosed.






25. Unusual in nature and infrequence in occurrence and material.






26. Recognized in a two-step process: (1) recognition of the tax benefit (2) measurement of the tax benefit.






27. Percentage of completion and completed contract method allowed.






28. Entities have two choices when accounting for gains and losses: (1) recognize on the income statement in period incurred (2) recognize in OCI in the period incurred and then amortize to pension expense using the corridor approach.






29. No impracticality exception for error corrections.






30. Entities are required to disclose concentrations of credit risk. Market risk disclosures are optional.






31. Classified as: (1) trading (2) available-for-sale (3) held-to-maturity






32. Lower of cost or market.






33. Revaluation is not permitted.






34. Research and development costs expensed - reported using the cost model only.






35. Includes disclosure of significant estimates but not judgments made in preparing the financial statements.






36. May be presented as a primary financial statement or in the notes of the financial statement.


37. No separate recognition is given to the conversion feature when convertible bonds are issued. Bonds are recorded in same manner as non-convertible bonds.






38. Cost method or legal (par) method.






39. Projection benefit obligation (PBO) is the defined benefit pension plan liability.






40. Cost model: historical - accum. depr. = impairment






41. For lessee - at least one of four met: (1) ownership transfer (2) written BPO (3) FV of leased property at least 90% of lease payments (4) lease term at least 75% of asset's life. Lessor: sales or direct financing if one of above criteria met and : (






42. Effective interest method is required - unless the straight-line method is not materially different from the effective interest method. Amortization is done over the contractual life of the bond.






43. Lessees--operating or capital leases. Lessors--operating - sales-type - or direct financing leases.






44. Slight variation from year-end reporting.






45. Must disclose nature of operations - use of estimates - estimate of a change in estimate - vulnerability of the risk f near-term severe impact from a material concentration.






46. Remeasurement method must be used when a foreign subsidiary is operating in a highly inflationary environment.






47. FASB has not yet issued a pronouncement on convergence with IASB.






48. Best method that clearly reflects periodic income. Does not need to have a rational relationship with the physical inventory flow. LFIO is permitted.






49. Recognition of gains is dependent on the rights of the leased property retained by the seller-lessee.






50. Considered non-compensatory if they meet certain requirements.