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






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






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


4. 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.






5. Segment profit or loss - assets.






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






7. Slight variation from year-end reporting.






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






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






10. 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).






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






12. 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.






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






14. 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.






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






17. Enacted tax rate only.






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






19. 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






20. May not be capitalized.






21. 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.






22. 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.






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






24. 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.






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






26. 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 : (






27. 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.






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






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






30. No impracticality exception for error corrections.






31. 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






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






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






34. 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.






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






36. 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






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






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






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






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






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






42. Revaluation is not permitted.






43. 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.






44. No requirement for explicitly stating following US GAAP.






45. All gains and losses included in OCI






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






47. Cost method or legal (par) method.






48. 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.






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






50. Enacted tax rate only.