Day 5 - 67% FAIL

Question 1

How does the fair value measurement consider liquidity in the valuation of an asset or liability?

Answer 1

Liquidity adjustments are made to reflect the ease of difficulty of converting an asset into cash

Question 2

When correcting an error in the calculation of foreign exchange gains and losses of a subsidiary, the adjustment should be made:

Answer 2

I’m the consolidated income Stmt

This reflects the accurate financial impact of the groups financial performance

Question 3

Skipping costs incurred by the consignor to ship inventory to the consignee should be considered:

Answer 3

Inventory costs to the consignor

MCQ-00290

Question 4

ABC was awarded a $1.5 million lawsuit on 11/01/24. But the appeal is expected to finish by year end. What amount should ABC Accrue if the lawyer expects a 40% reduction in the award amount?

Answer 4

0

MCQ-000914

Question 5

Rule: Allocation of “Issue Proceeds”

Answer 5

Allocate based on FMV

MCQ-01534

Question 6

I’m a NFP, if the board of trustees vote on holding $2k of bonds and the interest is used to fund teachers travel expense. Is this donor restricted assets?

Answer 6

No

Only the donor can restrict assets

MCQ-08621

Question 7

How is CS and APIC affected when additional rights are issued to shareholders without consideration?

Answer 7

Not affected - No Journal entry is made

MCQ-01003

Question 8

Cash basis net income equals $60k and AP decreased $15k from PY. What is Accrual net income?

Answer 8

$75k

Add decrease in CL

MCQ-00592