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






2. Contracts that may be settled in cash or stock are not included in diluted EPS if circumstances indicate that eh contract will be paid in cash.






3. Enacted tax rate only.






4. When the direct method is used - entities are required to present a reconciliation of net income to net cash flows from operating activities.






5. 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.






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






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






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






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






10. Slight variation from year-end reporting.






11. Revaluation is not permitted.






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






13. No requirement for explicitly stating following US GAAP.






14. Enacted tax rate only.






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






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. Bank overdrafts are excluded from cash and classified as financing cash flows.






18. 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.






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






20. Impairment losses recognized in income statement and cost basis is reduced. If held-to-maturity - subsequent changes are not recognized. If available-for-sale - subsequent income is included in OCI.






21. 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.






22. All adjustments for changes in deferred tax balances due to changes in tax laws or rates are recognized on the income statement.






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






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






25. 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.






26. 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 : (






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






28. 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






29. No classification






30. 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.






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






32. 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.






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






34. 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






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






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






37. Asset not required to be remeasures - but does get tested for impairment once classified as held-for-sale






38. Unrecognized prior service cost and unrecognized pension gains and losses are reported in AOCI. The pension benefit asset/liability is equal to the funded status of the pension plan.






39. No impracticality exception for error corrections.






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






41. 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






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






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






44. Two step test: fair value of reporting unit compared to its carrying value - including goodwill. If fair value is less than carrying value - an impairment loss is calculated by comparing the implied fair value of the reporting unit's goodwill to the






45. May not be capitalized.






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


47. Prior service cost increase the PBO and other comprehensive income in the period incurred and is then amortized to pension expense over the plan participant's remaining years of service.






48. Cost method or legal (par) method.






49. All gains and losses included in OCI






50. 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