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. 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.






2. Lower of cost or market.






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






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






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. Revaluation is not permitted.






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






8. 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.






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. 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


11. Percentage of completion and completed contract method allowed.






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






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






14. 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.






15. 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.






16. 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






17. 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.






18. Enacted tax rate only.






19. All gains and losses included in OCI






20. 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.






21. Segment profit or loss - assets.






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






23. 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.






24. 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.






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






26. No impracticality exception for error corrections.






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






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






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






30. No requirement for explicitly stating following US GAAP.






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






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






33. 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.






34. Enacted tax rate only.






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






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






37. 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.






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






39. 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.






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






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






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






43. No classification






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






45. 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 : (






46. 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






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






48. 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).






49. Slight variation from year-end reporting.






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