Day 16 - 70% DNF

Question 1

Under US GAAP, a transaction that is material and infrequent but not unusual should be reported separately when?

Answer 1

Always

Any transaction that is “Infrequent” and “Unusual” = report separately

MCQ-00072

Question 2

For NFP, net assets balance equals

Answer 2

Assets minus Liabilities

MCQ-01310

Question 3

ABC buys a truck for $30k and puts $3k down and finances the rest. How much should be reported in investing activities on the Stmt of Cash Flows?

Answer 3

$3k outflow

The $27k is a non-cash financing and investing transaction that is not reported but DISCLOSED

MCQ-07242

Question 4

Freight out is what type of expense?

Answer 4

Selling Expense and not included in inventory

Inventoriable Costs = Usual Costs

MCQ-04489

Question 5

Where are Bond sinking fund requirements reported?

Answer 5

They are not, they are DISCLOSED

MCQ-00657

Question 6

Interest expense incurred during construction should be

Answer 6

Capitalized by the weighted average expenditures

Note: there is no INTEREST EXPENSE

MCQ-04693

Question 7

How/when is the Gain or loss calculated on a property divided distribution?

Answer 7

The property dividend should be restated to FMV at the date of DECLARATION

MCQ-01545