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. Single - two - or in statement of changes in owner's equity. Presentation of changes in owner's equity is phasing out completely by 12/15/2012.






2. Two Step Test: (1) test for recovery: compare carrying value to undiscounted future cash flows (2) calculate impairment: difference between carrying value and fair value. Reversal of impairment losses is only permitted for assets held for sale.






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






4. No impracticality exception for error corrections.






5. 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 : (






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






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






8. All gains and losses included in OCI






9. No requirement for explicitly stating following US GAAP.






10. Cost method or legal (par) method.






11. Enacted tax rate only.






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






13. Percentage of completion and completed contract method allowed.






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






15. Enacted tax rate only.






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






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






18. Slight variation from year-end reporting.






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






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






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






22. Segment profit or loss - assets.






23. 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






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


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






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






27. 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






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






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






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






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






32. 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.






33. 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.






34. No classification






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






36. Indirect direct costs paid by the lessee are expensed when incurred.






37. 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






38. 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.






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






40. Revaluation is not permitted.






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






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






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






44. 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.






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






46. 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.






47. 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.






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






49. Should be classified as current or non-current based on the classification of the related asset or liability. If no asset/liability - timing of the reversal is used. All assets/liabilities must be netted (one net current and one net non-current).






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