9D Wrong Answers Flashcards
A loss for a recognized subsequent event should be reported in…
The current year financial statements
Which of the following are included in other comprehensive income?
Stock warrants outstanding
Reclassification adjustment for securities gain included in net income
Other comprehensive income includes reclassification adjustment
Does not include stock warrants outstanding
Gains from subsequent events, are not recognized until…
Realized
The account loans to employees is a…
2) why?
Monetary asset account
Since its payment amount is fixed at some point in the future
Merchandise inventory is considered…
2) why?
A nonmonetary account
2) since its value will change based on relative price levels in the
Future
Increases or decreases in the current cost of inventory result from the difference between…
The measures of assets at their entry dates (BOY or purchase date)
And measures of assets at their exit dates (EOY or date of
use/sale)
Holding gains would be reported when inventory is…
2) And when inventory is…
Sold during the year (realized gains)
2) Held at the end of the year (unrealized gains)
The requirement is to identify the balance sheet required in the Form 10-Q:
The SEC requires that a for 10-Q contain an interim balance sheet as of…
The preceding fiscal year
The requirement is to identify the balance sheet required in the Form 10-Q:
An interim balance sheet for the fiscal quarter of the proceeding year does…
Not need to be provided unless it is necessary for understanding
The impact of seasonal fluctuations
The classification for: changing from the gross profit method for determining year end inventory balances to dollar value LIFO
Correction of an error
Write down of inventory due to obsolescence and the excess of cash paid over carrying value to extinguish bonds are both classified as…
Part of net income before extraordinary items
Newly acquired assets are depreciated using the sum of years digits method, previously recorded assets are depreciated using the straight line method, are either of these transactions considered an accounting change?
No
A gain on re measuring a foreign subsidiary’s financial statements from the local currency into the functional currency,
Is it classified as income from continuing operations, with separate disclosure
Or
Other comprehensive income for the period?
income from continuing operations, with separate disclosure
A loss on translating a foreign subsidiary’s financial statements from the functional local currency into the reporting currency during this period
Is it classified as income from continuing operations, with separate disclosure
Or
Other comprehensive income for the period?
Other comprehensive income for the period
