Day 2

Question 1

Examples of Selling Expenses:

Answer 1

1. Freight-Out
2. Sales people salaries
3. Commissions
4. Advertising
5. The amount of office occupied by the sales team

MCQ-00052

Question 2

Equation: Income from Continuing Operations

Answer 2

on the TB

= Credits - Debits
Less: Income Taxes

MCQ-00208

Question 3

I’m preparing the Income Stmt, the line item displayed before considering income tax effects is:

Answer 3

Income (Loss) from Operations

MCQ-04462

Question 4

Equation: Income Tax Expense

Answer 4

= Income before discontinued operations × Tax Rate

MCQ-06959

Question 5

What is the minimum operating cycle of reporting a prepaid?

Answer 5

Can only report a 12 month or 1 year prepaid as a CA

MCQ-00359

Question 6

ABC Inc, has 3 cash bank accounts, one account is segregated solely for a PMT of a bond sinking fund, 2nd is overdrawn, 3rd has positive balance. How should these be reports on the BS?

Answer 6

Bond sinking - noncurrent asset
Overdraft - liability
Positive balance - Current Asset

MCQ-00362

Question 7

Current Liabilities consist of all payables due within:

Answer 7

One year

MCQ-00360

Question 8

Equation: Net AR

Answer 8

= AR - Allowance for Doubtful Accts

MCQ-08586

Question 9

Deferred Income Tax Payable is considered a:

Answer 9

Non-Current Liability

MCQ-00360