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. Percentage of completion and completed contract method allowed.






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






3. No requirement for explicitly stating following US GAAP.






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. 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.






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






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. Enacted tax rate only.






9. No classification






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






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

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12. 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.






13. 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.






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






15. Enacted tax rate only.






16. 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.






17. 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.






18. 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.






19. Segment profit or loss - assets.






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






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






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






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






24. 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






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






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






27. Slight variation from year-end reporting.






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. 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 : (






30. 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






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






32. 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.






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






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






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






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






37. All gains and losses included in OCI






38. 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).






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






40. May not be capitalized.






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






42. 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.






43. Lower of cost or market.






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






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






46. 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.






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






49. No impracticality exception for error corrections.






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







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