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. 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.






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






3. 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.






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






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






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






7. 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.






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






9. 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






10. Segment profit or loss - assets.






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






12. 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






13. Revaluation is not permitted.






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






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






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






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






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






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






20. All gains and losses included in OCI






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






22. May not be capitalized.






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






24. 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.






25. Enacted tax rate only.






26. 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






27. Enacted tax rate only.






28. Lower of cost or market.






29. 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.






30. 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.






31. 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.






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






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






34. 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.






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






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






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






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






39. 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.






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






41. Slight variation from year-end reporting.






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






43. 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.






44. No impracticality exception for error corrections.






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






46. No classification






47. 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






48. 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.






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






50. 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



Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests