9

Question 1

Under IFRS what is done with the bond issuance costs:

Answer 1

They are netted against the carrying value of the bond liability.

Question 2

Debenture bond definition:

Answer 2

Unsecured bonds

Question 3

The market price of a bond is the:

Answer 3

Pv of the principal plus the pv of the interest payments at the market rate.

Question 4

New partnership interest with investment of additional cap:

Answer 4

Exact method

Question 5

Principal market definition:

Answer 5

The market with the greatest volume or level of activity for the assets or liability.

Question 6

When notes maturity date don’t exceed one year, the must be recorded at:

Answer 6

face value.

Question 7

Land purchase price includes (capitalizes):

Answer 7

real estate taxes in arrears, attorney fee, among others.

Question 8

How should debt issuance costs be recorded on the balance sheet:

Answer 8

as a direct reduction to the carrying amount of the bond.

Question 9

Depletion method formula:

Answer 9

Total depletion = depletion rate (depletion base/estimated recoverable units)
“X”
Number of units extracted

Question 10

Depletion BASE formula

Answer 10

B - Cost to purchase property
Add - Development costs to prepare land for extraction
Add - Any estimated restoration costs
Subtract - Residual value of land after the resources are extracted

Question 11

The net gain from the sale of a warehouse and a purchase of a new warehouse will fall under what section of the IS?:

Answer 11

Income from continuing operations on the income statement (under other revenues and gains)

Question 12

The proper accounting for restoration costs when related to depreciation is:

Answer 12

the restoration costs should be added to the depreciable base of the life of the mining operation.

Question 13

The required financial statement for an investment trust fund is:

Answer 13

statement of changes in fiduciary net position.

Question 14

Routine employer contributions by the general fund to the pension trust fund would be accounted for as an expenditure in what fund?:

Answer 14

General fund

Question 15

Fee earned/ withheld by county for administering tax receipts for other city districts journal entry would be:

Answer 15

DR. Cash

CR. Additions-Fees

Question 16

What should done with inter-company profits and COGS when preparing the consolidated statements?:

Answer 16

They should be eliminated, even if 100% ownership inst present.

Question 17

Define unassigned fund balance:

Answer 17

Unassigned fund balance represents the amount of current resources carried forward into the following year end and expenditures were less that appropriations.

Question 18

Investing activities in the statement of CF’s includes:

Answer 18

acquisitions, sales, long term assets, or investment assets.

Question 19

Financing activities in the statement of CF’s includes:

Answer 19

Obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed. Dividends paid.

Question 20

how should lease payments be reported in the CF statement?:

Answer 20

Cash payment to reduce principal are recorded as financing activities. The interest portion is reported in the operating activities section.

Question 21

How to record bond discount in a statement of CF?:

Answer 21

It is considered operating activity.

Question 22

What increases/decreases CF from operations under the indirect method?:

Answer 22

non-cash items and increase/decrease in working capital.