Day 25 - 83%

Question 1

NRV

MCQ-00089

Question 2

Bank 1 has a positive account balance and bank 2s account is over drawn. How should these be reported?

Answer 2

CA and CL

Bank 2 has no legal right of offset at different banks

MCQ-00362

Question 3

A shareholder donates Treasury stock to a company: what is the result?

Answer 3

Results in no change to total Stockholders equity and the number of common shares outstanding declines with a proportionally increase in book value per common shares

MCQ-00700

Question 4

Insurance costs were incurred were unpaid and not recorded. What is the effect to Accrued Liability and RE?

Answer 4

Understated - Accrued Liability

No Effect - RE unrecorded liability affects WIP so not COGS

MCQ-00618

Question 5

The difference between book value and _____ of the property dividend should be recorded as gain/loss on the disposal of an asset

Answer 5

FMV

MCQ-01545

Question 6

ABC issued 1,000 shares of $5 par CS in exchange for legal services to Mike Ross. He normally bills $160 an hour. At the time of the exchange the stock was trading at $140 per share. How much did APIC increase?

Answer 6

$135k

Use fair value of stock

MCQ-01007

Question 7

Stock Dividends should be recorded at FMV for an investment accounted for by the cost or equity method?

Answer 7

Neither

Stock Dividends and Stock splits are NOT considered income

MCQ-01562