SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
U.S. GAAP
Start Test
Study First
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. 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
Lease Classification
Related Party Transactions
Inventory Cost Flow Assumptions
Goodwill Impairment
2. No separate recognition is given to the conversion feature when convertible bonds are issued. Bonds are recorded in same manner as non-convertible bonds.
Risks and Uncertainties
Bond Issue Costs
Inventory Cost Flow Assumptions
Convertible Bonds
3. Entities are required to disclose concentrations of credit risk. Market risk disclosures are optional.
Disclosure of Financial Instruments
Convertible Bonds
Reporting of Remeasurements
Nonmonetary Exchanges
4. No requirement for disclosure of key management compensation arrangements.
Funded Status of Pension Plan
Disclosure of Financial Instruments
Related Party Transactions
Statement of Cash Flows (Cash)
5. 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).
Contingent Liability
Funded Status of Pension Plan
Bond Issue Costs
Reporting of Deferred Taxes
6. All adjustments for changes in deferred tax balances due to changes in tax laws or rates are recognized on the income statement.
Accounting for Adjustments in Tax Rates
Bond Discount/Premium Amortization
Comprehensive Income (Presentation)
Marketable Securities - Classification
7. 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
Statement of Cash Flows (Interest and Dividends)
Impairment of Intangible Assets Other Than Goodwill
Uncertain Tax Positions
Capital (Finance) Lease Criteria
8. Components of net periodic pension cost must be aggregated and presented as one amount on the income statement.
Impairment of Intangible Assets Other Than Goodwill
Reporting of Pension Cost
Disclosure of Financial Instruments
Computer and Software Development Costs
9. Entities cannot apply the FASB conceptual framework to specific accounting issues
Indirect Costs of Lease
Conceptual Framework
Uncertain Tax Positions
Inventory Valuation
10. Cost method or legal (par) method.
Notes to the Financial Statements
Variable Interest Entity
Treasury Stock
Convertible Bonds
11. 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.
Fixed Asset Impairment
Contingent Liability
Fixed Asset Depreciation
Funded Status of Pension Plan
12. 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
Diluted EPS
Segment Reporting
Computer and Software Development Costs
Revenue Recognition
13. Costs before technological feasibility must be expensed - costs after technological feasibility are capitalized.
Lease Classification
Computer and Software Development Costs
Treasury Stock
Accounting for Adjustments in Tax Rates
14. 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.
Pension Plan Cost
Impairment of Intangible Assets Other Than Goodwill
Gains and Losses on Pensions
Marketable Securities - Classification
15. Research and development costs expensed - reported using the cost model only.
Intangible Assets
Reporting of Pension Cost
Lease Classification
Accounting for Stock Issued to Employees
16. When the direct method is used - entities are required to present a reconciliation of net income to net cash flows from operating activities.
Extraordinary Items
Prior Service Cost
Statement of Cash Flows (Method)
Marketable Securities - Available-For-Sale
17. Classified as: (1) trading (2) available-for-sale (3) held-to-maturity
Disclosure of Financial Instruments
Marketable Securities - Available-For-Sale
Marketable Securities - Impairment
Marketable Securities - Classification
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.
Contingencies (Probable and Possible Definitions)
Comprehensive Income (Revaluation)
Accounting for Income Taxes (Valuation)
Segment Reporting
19. Projection benefit obligation (PBO) is the defined benefit pension plan liability.
Fixed Asset Impairment
Pension Plan Liability
Convertible Bonds
Impairment of Intangible Assets Other Than Goodwill
20. No impracticality exception for error corrections.
Inventory Valuation
Error Correction
Reporting of Deferred Taxes
Fixed Asset Impairment
21. 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.
Consolidation - Parent and Subsidiary with Different Year-Ends
Interim Financial Reporting Tax Rates
Variable Interest Entity
Marketable Securities - Impairment
22. Considered non-compensatory if they meet certain requirements.
Impairment of Intangible Assets Other Than Goodwill
Accounting for Stock Issued to Employees
Pension Plan Cost
Computer and Software Development Costs
23. Recorded as an asset and amortized using the straight-line method.
Comprehensive Income (Presentation)
Investment Property
Bond Issue Costs
Impairment of Intangible Assets Other Than Goodwill
24. 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.
Contingencies (Probable and Possible Definitions)
Diluted EPS
Accounting for Income Taxes (Valuation)
Interim Financial Reporting
25. All gains and losses included in OCI
Financial Instruments (Initial Recognition)
Contingent Liability
Marketable Securities - Available-For-Sale
Indirect Costs of Lease
26. FASB has not yet issued a pronouncement on convergence with IASB.
Financial Instruments (Initial Recognition)
Segment Reporting
Capital (Finance) Lease Criteria
Reporting of Deferred Taxes
27. Asset not required to be remeasures - but does get tested for impairment once classified as held-for-sale
Discontinued Operations
Conceptual Framework
Pension Plan Cost
Notes to the Financial Statements
28. 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.
Notes to the Financial Statements
Capital (Finance) Lease Criteria
Determining Functional Currency
Marketable Securities - Classification
29. Recognition of gains is dependent on the rights of the leased property retained by the seller-lessee.
Disclosure of Financial Instruments
Sale-Leaseback Transactions
Nonmonetary Exchanges
Reporting of Pension Cost
30. Cost model: historical - accum. depr. = impairment
Fixed Asset Valuation
Marketable Securities - Available-For-Sale
Interim Financial Reporting
Fixed Asset Impairment
31. Best method that clearly reflects periodic income. Does not need to have a rational relationship with the physical inventory flow. LFIO is permitted.
Pension Plan Liability
Inventory Cost Flow Assumptions
Reporting of Deferred Taxes
Intangible Assets
32. Bank overdrafts are excluded from cash and classified as financing cash flows.
Determining Functional Currency
Interim Financial Reporting Requirements
Statement of Cash Flows (Cash)
Lease Classification
33. May be presented as a primary financial statement or in the notes of the financial statement.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
34. (Balance sheet - income statement - SOCF) as of the most recent fiscal quarter and as of the end of the preceding fiscal year.
Discontinued Operations
Error Correction
Conceptual Framework
Interim Financial Reporting Requirements
35. May not be capitalized.
Error Correction
Development Costs (R&D)
Marketable Securities - Impairment
Statement of Cash Flows (Cash)
36. 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.
Reporting of Deferred Taxes
Consolidation - Parent and Subsidiary with Different Year-Ends
Sale-Leaseback Transactions
Inventory Cost Flow Assumptions
37. 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.
Revenue Recognition
Pension Plan Liability
Risks and Uncertainties
Pension Plan Cost
38. Probable is defined as likely to occur and reasonably possible is defined as more likely than remote - but less than likely.
Related Party Transactions
Inventory Cost Flow Assumptions
Contingencies (Probable and Possible Definitions)
Fixed Asset Impairment
39. 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.
Determining Functional Currency
Inventory Cost Flow Assumptions
Subsequent Events
Gains and Losses on Pensions
40. Indirect direct costs paid by the lessee are expensed when incurred.
Funded Status of Pension Plan
Related Party Transactions
Indirect Costs of Lease
Investment Property
41. 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
Pension Plan Liability
Financial Instruments (Fair Value)
Consolidation - Parent and Subsidiary with Different Year-Ends
Accounting for Income Taxes (Valuation)
42. 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.
Reporting of Pension Cost
Bond Discount/Premium Amortization
Accounting Changes
Related Party Transactions
43. 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.
Bond Discount/Premium Amortization
Accounting Changes
Conceptual Framework
Lease Classification
44. 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
Accounting for Income Taxes (Valuation)
Change in Accounting Entity
Subsequent Events
Bond Issue Costs
45. Slight variation from year-end reporting.
Nonmonetary Exchanges
Contingent Liability
Interim Financial Reporting
Consolidation - Parent and Subsidiary with Different Year-Ends
46. Interest and dividends received - interest paid and taxes paid are CFO. Dividends paid are classified as CFF.
Diluted EPS
Statement of Cash Flows (Interest and Dividends)
Capital (Finance) Lease Criteria
Notes to the Financial Statements
47. Enacted tax rate only.
Reporting of Remeasurements
Impairment of Intangible Assets Other Than Goodwill
Foreign Currency Translation
Interim Financial Reporting Tax Rates
48. 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.
Fixed Asset Impairment
Marketable Securities - Impairment
Notes to the Financial Statements
Comprehensive Income (Presentation)
49. 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
Notes to the Financial Statements
Contingencies (Probable and Possible Definitions)
Variable Interest Entity
Conceptual Framework
50. 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
Interim Financial Reporting Tax Rates
Bond Issue Costs
Nonmonetary Exchanges
Segment Reporting