Day 39 - 43% (DNF) FAIL

Question 1

How much probable los should be accrued when an entity has liability insurance and a deductible?

Answer 1

The full amount of loss should be Accrued

Insurance proceeds = gain contingency

MCQ-00913

Question 2

Purchase and sale of PP&E is what cash flow activity?

Answer 2

Investing

MCQ-06593

Question 3

A Lessee signs a five year lease with a written purchase option and are reasonably certain that they will exercise it. The Lessee cash flow from operations will be:

Answer 3

Negatively impacted by variable lease payments not included in the lease liability

MCQ-08771

Question 4

ABC repurchases 10 percent of it’s outstanding common stock. What is the effect of this transaction?

Answer 4

It’s debt to Total Capital ratio will increase

Repurchase of common stock reduces total SH Equity and reduces total capital available

MCQ-00903

Question 5

Dividends Paid and Dividend Declared should be reported on the Stmt of Cash Flows as?

Answer 5

ONLY Dividend Paid as a Financing Activity

MCQ-01226

Question 6

Quoting an exchange rate using the direct method:

Answer 6

The domestic price (not $1) of 1 unit of the foreign currency (€1)

$0.63 US to €1.00 Euro

MCQ-07414

Question 7

ABC owns 25 percent of Tesla and 18 percent of Ford. Neither investment gives ABC the ability to exercise significant influence over operating and financial policies?

Which investment is accounted for on ABC books under the Equity Method?

Answer 7

Neither

Quantitative threshold for equity Method = 20 - 50%, HOWEVER, since ABC cannot exercise significant influence the Equity Method is NOT USED

MCQ-11094

Question 8

Comprehensive Income includes:

Answer 8

All changes in equity during a period EXCEPT those resulting from investments by owners or Distributions to owners

MCQ-15674