Day 67 - 70% FAIL

Question 1

What is the interest expense for a lease liability?

Answer 1

Finance lease is recorded by debiting the ROU asset and crediting the lease liability (annual payments x PV factor)

Interest Expense = Lease liability x interest rate

MCQ-05922

Question 2

How are changes in estimates reported?

Answer 2

Only effect current and future periods

MCQ-00081

Question 3

True or false: interest income from the unused portion of the construction loan may be used to offset the capitalized interest costs for a given period

Answer 3

False

MCQ-01544

Question 4

True or false: when the accumulated Expenditures outstanding exceed the funds available to a specific borrowing the weighted average interest rate on the entities other debt is applied to the excess

Answer 4

True

MCQ-01544

Question 5

Short term debt that is being refinanced with long term debt should be classified on the BS as?

Answer 5

Non-Current liability

MCQ-05690

Question 6

When is the fair value method used for determining the value of investors stocks?

Answer 6

When less than 20% is owned

Investment is carried at FVTNI (FV through net income)

MCQ-07457

Question 7

Under US GAAP, earnings per share data should be reported for:

Answer 7

Yes - Yes

• Discounted Operations
• Income from continuing operations

MCQ-00222