Day 16

Question 1

A large accelerated filer must file their for 10-Q how many days after the end of the period?

Answer 1

40 days

Question 2

Lower of cost or market

MCQ-06041

Question 3

Where would interest and advertising expense show up on the Income Stmt?

Answer 3

Interest is separately stated

Advertising is classified as a selling expense

MCQ-00053

Question 4

Weighted Average Capital balances

MCQ-00877

Question 5

When a company sells common stock to purchase another business, what is the acquisition price?

Answer 5

Common stock is valued at the price when acquisition is finalized

MCQ-05619

Question 6

Lawyers predicted an unfavorable lawsuit outcome. They say it is reasonably possible and estimate $100k - $150k loss. What is reported?

Answer 6

$0 - is Accrued bc it is only “Reasonably Possible” (Accrue = Probable)

$100 - $150k - is disclosed in FS

MCQ-11129

Question 7

ABC buys 100% of XYZ, at the date of acquisition what is the consolidated Stockholders Equity?

Answer 7

Rule: At the date of acquisition, consolidated Equity = Parent Company’s Equity PLUS the fair value of any Noncontroling interest

Subsidiary’s equity is ELIMINATED

MCQ-00429

Question 8

Using the bonus method, what ratio should be used for the admittance of a new partner?

The excess of the new partner’s contribution over the amount credited to the new partner’s capital account?

Answer 8

Old partners original profit and loss ratio

MCQ-00871

Question 9

What is the difference between an Ordinary Annuity and an Annuity Due?

Answer 9

An ordinary annuity involves payments due at the end of each period

An Annuity due involves payments at the beginning of each period

Question 10

What is the principal market for an asset?

Answer 10

The market with the greatest volume of activity

MCQ-04904