Day 20 Flashcards
When are gain contingencies reported?
Not until they are realized
MCQ-00753
How are intercompany receivables reported on the consolidated BS of the patent Corp?
They are all eliminated
MCQ-00455
The cumulative effect of a change in accounting estimate should be shown separately:
It should NOT be recorded separately on any FS
A change in estimate is handled PROSPECTIVELY - No cumulative effect adjustment is made
MCQ-00083
Using the allowance method, how would the collection an account that was previously written off effect AR and Allowance for Uncollectible Accounts?
No effect on AR and increase Allowance
JE: to restore account previously written off
DR - AR
CR - Allowance for Uncollectible
JE: to record cash collection
DR - Cash
CR - AR
MCQ-05679
What are the financial categories of a NFP on the Stmt of Financial Position?
Assets, Liabilities, Net Assets
MCQ-07250
What are financial categories of a NFP on the Stmt of Activities?
Changes in net assets without donor restrictions
Changes in net assets with donor restrictions
MCQ-07250
When given the net income and asked to find the net cash provided by Operating Activities. How is a decrease in prepaid rent treated?
Added to Net Income
Changes in DEBIT balance accts have the opposite effect on cash flows
Changes in CREDIT balance accts have the same effect on cash flows
MCQ-01233
Losses on Treasury Stock would reduce:
Paid In Capital in excess of par
MCQ-01527
What type of difference is the premiums of officer life insurance (where the company is the beneficiary) and interest income on municipal bonds?
Permanent Differences = no deferred tax liability
MCQ-00837
