BALANCE SHEET

Question 1

FIFO into LIFO inventory

Answer 1

FIFO = Lifo COGS - Change in LIFO reserve x (1-tax)

Question 2

Adjustment of retained earnings =

Answer 2

LIFO reserve . (1-tax)

Question 3

Liquidity Balance Sheet is permitted in wich type of accounting standards?

Answer 3

IFRS only

Question 4

Wich of the Financial Standards (IFRS / US) DTA shown on B/s regardless the probability of being full realized?

Answer 4

US GAAP but not IFRS

Question 5

What is going to happen with the reported value under of DTA on IFRS

Answer 5

Reduce = Higher probability that the full amount will NOT be realized

Question 6

When we have DTL comparing Tax purposes with financial purposes?

Answer 6

Tax Expense - Tax Payble >

Tax expense in Financial statement > Taxes payble on tax returns

Question 7

Fifo Ending Inventory =

Answer 7

LIFO ending inv. + LIFO Reserve

Question 8

FIFO after tax profit =

Answer 8

LIFO after tax prof. + (change in LIFO reserve)(1-tax)

Question 9

Research and Litigation costs bias?

Answer 9

Conservative financial reporting

Question 10

Issuing a bond at a premium, what is the effect on the Debt/Equity ratio?

Answer 10

Net book Value Decreases because
Premium Amortizes

Equity INCREASES
because
Interest expenses decrease

Debt / equity decreases over the bonds life