Becker FAR MCQ worng Flashcards
____ depreciation method reflects that an asset’s service potential declines with use
units of production
___ deprecation method would reflect that an assets is subject to rapid obsolescence
accelerated deprecation
____ deprecation method would reflect that an asset incurs increasing repairs and maintenance with use
accelerated depreciation
___ deprecation method reflects that an asset’s service potential declines with the passage of time
Straight line
How do you figure out how to eliminate intercompany profit
take the inventory of the P and S add it up and net it against the consolidated inventory
According to the FASB’s conceptual framework, the usefulness of providing information in financial statements is subject to the constraint of:
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.
Which of the following items are subject to the application of intraperiod income tax allocation:
Discontinued operations
Cumulative effects of accounting changes
Prior-period adjustments
Direct adjustments to capital accounts
When debt is issued at a discount, interest expense over the term of debt equals the cash interest paid ____ discount
minus
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.
Manufacturing Overhead
Interest costs should not be _____ to inventories manufactured routinely in large quantities.
Capitalized
Only equipment that has an alternative use is _____ and depreciated
capitalized
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.
should be
“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.”
sale back lease
A company that wishes to disclose information about the effect of changing prices should report this information in
supplementary information to the financial statements.
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
BS
The funded status of a defined benefit pension plan for a company should be reported in the:
statement of financial position.
For General Fund an interfund transfer without requirement for repayment must be recorded as ____
other financing uses (or sources to the recipient)
Gains (and losses) resulting from the change in fair value of derivatives not held (or issued) for speculative (not hedging) purposes should be recognized ___
NI in the period the FV changes were made
Governmental-wide financial statements focus on ____, and funds focus on ______
operational accountability, fiscal accountability.
State and local governments recognize revenue when____
when measurable and available. Revenues must not only be earned but collected (usually within 60 days of YE)
which format must an enterprise fund use to report cash flow operating activities in the statement of cash flow
direct method
When special assessment debt is to be repaid from general resources of the government, the debt should be recorded as ____
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
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 _____
financing activities section , segregated from other financing activities
for government accounting ____ accounts are adjusted upon the adoption or amendment of the budget and are closed at the end of the year.
Appropriation
for governmental accounting ___ accounts are adjusted when obligations are incurred or paid and when accounts are closed at the end of a fiscal period.
Expenditure
for governmental accounting what is the JE for the issuance of a purchase order
DR encombrance
cr. Budgetary control
Debt proceeds, net of discount, are recorded in the ____ fund.
capital projects
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 _______
Sepcial revenue fund
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 ______
agency funds
reconcilation between gov’t fund financial statements and gov’t wide financial statements would be most likley found where
basic financial statements
