20A Wrong Answers

Question 0

Personal statement of financial condition:

The difference between estimated current values of assets and liabilities is reported between…

Answer 0

Liabilities and net worth

Question 1

Personal statement of financial condition:

Only estimated amount of income taxes on differences between estimated current values and current amounts of assets and liabilities is…

Answer 1

Presented between liabilities and net worth

Question 2

Personal statement of financial condition:

Tax on income earned during the first quarter of the year is…

Answer 2

A current tax liability

Question 3

On a personal statement of financial condition, if someone owns 50% of the stock…

Answer 3

The equity method is irrelevant

Fair value is used if known

Question 4

When calculating a vesting interest in a 401K plan, the employees contributions and returns…

Employer contributions?

Answer 4

Best right away, while employer contributions/returns don’t

Vest until after specified period

Question 5

Noncancelable personal commitments should be reported at…

Answer 5

Their discounted cash flow

Question 6

3 attributes noncancelable personal commitments must have

Answer 6

1 for fixed or determinable amounts

2 not contingent on others life expectancies or occurrence of
Particular event

3 don’t require performance of future service by others

Question 7

not contingent on others life expectancies or occurrence of

Particular event examples

Answer 7

Disabilities and death

Question 8

Personal statement of financial condition:

Income taxes payable should include 3 things

Answer 8

1 unpaid income taxes for completed tax years

2 estimated tax for elapsed portion of current year

3 estimated income tax on difference between current value of
Assets, current amounts of liabilities and their respective tax bases

Question 9

2 types of personal financial statements

Answer 9

1 statement of financial condition

2 statement of changes in net worth