Becker FAR MCQ worng

Question 1

____ depreciation method reflects that an asset’s service potential declines with use

Answer 1

units of production

Question 2

___ deprecation method would reflect that an assets is subject to rapid obsolescence

Answer 2

accelerated deprecation

Question 3

____ deprecation method would reflect that an asset incurs increasing repairs and maintenance with use

Answer 3

accelerated depreciation

Question 4

___ deprecation method reflects that an asset’s service potential declines with the passage of time

Answer 4

Straight line

Question 5

How do you figure out how to eliminate intercompany profit

Answer 5

take the inventory of the P and S add it up and net it against the consolidated inventory

Question 6

According to the FASB’s conceptual framework, the usefulness of providing information in financial statements is subject to the constraint of:

Answer 6

cost-benefit.- requirement that benefits exceed costs was identified as a pervasive constraint. Costs are imposed when reporting financial information, and those costs must be justified.

Question 7

Which of the following items are subject to the application of intraperiod income tax allocation:

Answer 7

Discontinued operations
Cumulative effects of accounting changes
Prior-period adjustments
Direct adjustments to capital accounts

Question 8

When debt is issued at a discount, interest expense over the term of debt equals the cash interest paid ____ discount

Answer 8

minus

Question 9

A manufacturer whose finished goods inventories are items that are routinely manufactured or otherwise produced in large quantities, on a repetitive basis, should include ________ in its cost of finished goods inventory.

Answer 9

Manufacturing Overhead

Question 10

Interest costs should not be _____ to inventories manufactured routinely in large quantities.

Answer 10

Capitalized

Question 11

Only equipment that has an alternative use is _____ and depreciated

Answer 11

capitalized

Question 12

The price used to measure fair value ____ be adjusted for transaction costs, which are the incremental direct costs to sell the asset or transfer the liability.

Answer 12

should be

Question 13

“if a change in the provisions of a capital lease gives rise to a new agreement classified as an operating lease, the transaction shall be accounted for under the _____ requirements.”

Answer 13

sale back lease

Question 14

A company that wishes to disclose information about the effect of changing prices should report this information in

Answer 14

supplementary information to the financial statements.

Question 15

In analyzing a company’s financial statements, which financial statement would a potential investor primarily use to assess the company’s liquidity and financial flexibility

Answer 15

BS

Question 16

The funded status of a defined benefit pension plan for a company should be reported in the:

Answer 16

statement of financial position.

Question 17

For General Fund an interfund transfer without requirement for repayment must be recorded as ____

Answer 17

other financing uses (or sources to the recipient)

Question 18

Gains (and losses) resulting from the change in fair value of derivatives not held (or issued) for speculative (not hedging) purposes should be recognized ___

Answer 18

NI in the period the FV changes were made

Question 19

Governmental-wide financial statements focus on ____, and funds focus on ______

Answer 19

operational accountability, fiscal accountability.

Question 20

State and local governments recognize revenue when____

Answer 20

when measurable and available. Revenues must not only be earned but collected (usually within 60 days of YE)

Question 21

which format must an enterprise fund use to report cash flow operating activities in the statement of cash flow

Answer 21

direct method

Question 22

When special assessment debt is to be repaid from general resources of the government, the debt should be recorded as ____

Answer 22

general long-term liabilities in the governmental activities column of the government-wide statement of net position as is any debt that is to be repaid from general resources

Question 23

Cash contributions restricted by the donor for long-term purposes must be reported as a cash inflow in the ______ of the statement of cash flows, segregated from _____

Answer 23

financing activities section , segregated from other financing activities

Question 24

for government accounting ____ accounts are adjusted upon the adoption or amendment of the budget and are closed at the end of the year.

Answer 24

Appropriation

Question 25

for governmental accounting ___ accounts are adjusted when obligations are incurred or paid and when accounts are closed at the end of a fiscal period.

Answer 25

Expenditure

Question 26

for governmental accounting what is the JE for the issuance of a purchase order

Answer 26

DR encombrance

cr. Budgetary control

Question 27

Debt proceeds, net of discount, are recorded in the ____ fund.

Answer 27

capital projects

Question 28

Principal and interest expenditures incurred are not accrued, an important difference between full accrual and modified accrual accounting, and the tourist development revenue is recorded in a _______

Answer 28

Sepcial revenue fund

Question 29

The fact pattern describes a transaction in which Harland County is collecting and holding cash temporarily on behalf of the cities within its borders. Transactions of this type are handled in ______

Answer 29

agency funds

Question 30

reconcilation between gov’t fund financial statements and gov’t wide financial statements would be most likley found where

Answer 30

basic financial statements