Day 23 Flashcards
In Form 10-Q, what is the focus of Item 2 Part I?
It is dedicated to Management’s Discussion and Analysis of Financial Condition and Results of Operations
When correcting an error in the calculation of foreign exchange gains and losses in a subsidiary, the adjustment should be made:
In the consolidated income Stmt
This reflects the accurate financial impact of foreign exchange movements on the group’s financial performance
What should be included in the summary of facts in significant accounting policies regarding FA?
Depreciation
Note: composition of FA is not included
MCQ-00195
Foreign exchange gain or loss is equal to:
The exchange rate at the time of purchase LESS exchange rate at time paid
MCQ-07430
On the Stmt of Cash Flows, where would the conversion of bonds payable to common stock be reported?
In supplementary information as non-cash transaction in investing and financing activities
MCQ-04512
When does the title transfer for FOB Shopping Point?
When the gods are delivered to Carrier
MCQ-00112
What are contingent shares for computing EPS?
Contingent Shares = Shares issuable for no cash consideration after the occurrence of the specified condition
EX: Shares issued for achieving NI, the issuance of a patent, after a specific time
NOT CONTINGENT = Shares issuable upon exercise of a stock option
MCQ-01195
What is the relationship between the bond liability and bond issuance costs?
It is SUBTRACTED
MCQ-00632
When there is a change in reporting entity, how should the change be presented on the FS?
Retrospectively, including a note disclosure, and application to all financial periods presented
MCQ-08483
What is included in the Summary of Significant Accounting Policies?
reported in the first note at the FS
- Measurement bases
- Accounting principles & methods
- Accounting criteria & policies
- Depreciation method
- Revenue recognition
MCQ-08589
Cash to Accrual
- ADD Increases to CA
- SUBTRACT Decreases to CA
- ADD Decreases to CL
- SUBTRACT Increases to CL
MCQ-06929
