Day 26 - 43% FAIL

Question 1

Rule: at the date of acquisition, the consolidated equity will equal

Answer 1

The parents company’s equity

MCQ-00429

Question 2

Define: Purchase Commitment

Answer 2

A legally binding contact to purchase goods

Purchase Commitment loss = the minimum amount remaining to purchase

MCQ-00755

Question 3

Return on Assets

Answer 3

Net Income / Avg. Assets

MCQ-04950

Question 4

Bond Issuance costs include:

Answer 4

1. Promotional costs
2. Accounting/Underwriting fees/commissions
3. Printing and Engraving
4. Legal fees

MCQ-00662

Question 5

Inventory turnover ratio

Answer 5

COGS / Avg. Inventory

MCQ-06925

Question 6

How should a liability that requires a periodic interest payment be classified?

Answer 6

Accrued Liability

MCQ-00327

Question 7

What’s the difference between the Gross and Net Method of AP?

Answer 7

Gross - without regard to the discount

Net - AP is recorded net of the discount

MCQ-00327

Question 8

Goodwill

MCQ-00289

Question 9

Under the equity method investment income equals:

Answer 9

The investor’s ownership % of the investees net income

CASH DIVIDENDS ARE TREATED AS RETURN OF CAPITAL NOT INCOME

MCQ-14853