Day 22 - 80%

Question 1

Under the equity method, the investor records dividends received as a

Answer 1

Reduction in the carrying amount of the investment

MCQ-00309

Question 2

ABC purchased equipment in January year 1 for $100k with a salvage value of $10k after 10 years and uses 200% declining balance depreciation. What is the depreciation expense in year 2?

Answer 2

$16k

• Year 1 = $100k x (1/10) = $20k
• Year 2 = $80k x (1/10) = $16k

MCQ-05661

Question 3

Treasury Stock Method

MCQ-05110

Question 4

When collect ability is reasonably assured, the excess of the subscription price over the stated value of the no par common stock subscribed should be recorded as:

Answer 4

APIC when the subscription is recorded

Subscription Stock Sale - contractual agreement to sell a specified number of stock on credit

MCQ-01548

Question 5

Effective interest rate

MCQ-00330

Question 6

Dollar value LIFO calc

MCQ-00080

Question 7

When does the subsequent event evaluation period end for a company that does not file with the SEC?

Answer 7

Subsequent event evaluation period runs through the date the FS are available to be issued.

The available to be issued date is when the FS have received all approvals

MCQ-04890

Question 8

When does the subsequent event evaluation period end for a company that does not file with the SEC?

Answer 8

Subsequent event evaluation period runs through the date the FS are available to be issued.

The available to be issued date is when the FS have received all approvals

MCQ-04890