Day 34 - 80%

Question 1

Rule: Capitalized equipment should be depreciated in accordance with the lessees normal depreciation policy, UNLESS the lease does not transfer ownership

Answer 1

MCQ-00608

Question 2

On December 31, special insurance costs were incurred but unpaid, were not recorded. If the insurance costs related to WIP, how is Accrued Liabilities and RE affected?

Answer 2

Accrued Liabilities - Understated

RE - No Effect

MCQ-00618

Question 3

Heiarchy of asset and liability valuation

Answer 3

1. Level 1 - Quoted prices for identical assets in active market
2. Level 2 - directly or indirectly observable
3. Unobservable

MCQ-08231

Question 4

In determining earnings per share, interest expense net of applicable income taxes, on convertible debt that is dilutive should be:

Answer 4

Added back to meet income for dilutive earnings per share

And ignored for basic EPS

MCQ-01210

Question 5

How is donor restricted cash reported on the Stmt of Financial Position for a NFP?

Answer 5

Non-Current Asset

MCQ-01268

Question 6

Income available to Common stockholders in calculating EPS equals:

Answer 6

SUBTRACT from NI:
- Dividends on noncumulative preferred stock declared
- CY preferred stock dividends regardless of they are DECLARED or Paid

MCQ-07243