Day 24 - 80%

Question 1

What method of recording Uncollectible accounts expense is consistent with US GAAP?

Answer 1

Allowance method - used to match expenses with revenues and to record the proper carrying amount of AR

MCQ-00039

Question 2

A NFP elected to not capitalize artwork. The artwork was stolen and the NFP received $35k in insurance proceeds. Where should this be reported?

Answer 2

Stmt of Cash Flows from investing activities

Insurance proceeds associated with long lived assets

MCQ-01243

Question 3

The carrying amount of the bond investment equals:

Answer 3

The purchase price less the Accrued interest

MCQ-00501

Question 4

Equity securities are reported at:

Answer 4

(FVTNI) - Fair value through net income

MCQ-00523

Question 5

Share issued upon the exercise of a stock option is considered?

Answer 5

NOT considered contingent shares

MCQ-01195

Question 6

Under US GAAP, which inventory costing method most closely approximates COGS and Ending Inventory Value?

Answer 6

COGS = LIFO

Ending Inventory = FIFO

MCQ-00294

Question 8

Are retroactive adjustments needed when you acquire significant influence during the year?

Answer 8

No

MCQ-00324