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. Enacted tax rate only.






2. Revaluation is not permitted.






3. 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.






4. 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.






5. 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






6. 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.






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






8. 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






9. 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.






10. 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






11. Segment profit or loss - assets.






12. Lower of cost or market.






13. Enacted tax rate only.






14. Slight variation from year-end reporting.






15. 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.






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






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






18. 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






19. Comparative financial statements not required. SEC requires comparative financial statements (2 B/S - 3 other). Cumulative effect is an adjustment to beginning retained earnings to the earliest prior period presented.






20. May not be capitalized.






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. Cost method or legal (par) method.






23. Finite life intangibles - two step process: compare carrying amount to undiscounted cash flows - then if carrying amount exceeds cash flows - impairment amount is the difference between carrying amount and fair value of asset. For indefinite life - c






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






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






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






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






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






29. 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.






30. Percentage of completion and completed contract method allowed.






31. 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.






32. No requirement for explicitly stating following US GAAP.






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






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






35. 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.






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






37. 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.






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






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






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


41. No impracticality exception for error corrections.






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






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






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






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






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






47. 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






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






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






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