Day 69 - 63% FAIL

Question 1

Under lower of cost or NET REALIZABLE VALUE only subtract

Answer 1

Cost to sell

Not profit margin

MCQ-06046

Question 2

There is no requirement to appropriate retained earnings

Answer 2

The company can appropriate whenever they feel like it

MCQ-01527

Question 3

Comprehensive Income will include:

Answer 3

Net income and OCI

Net income includes losses from Discontinued operations

MCQ-07438

Question 4

Steps to capitalize interest:

Answer 4

1. Calculate weighted average expenditures
2. Compute capitalize interest
3. Compare capitalized interest to actual interest

MCQ-08243

Question 5

When is the reconciliation of net income to net cash provided from operating activities a required supplemental disclosure?

Answer 5

When the direct method of Cash Flows is used

MCQ-09417

Question 6

ABC appropriate $10k of RE for the construction of a shed, the shed is complete in year 2 for the cost of $7k. What is the appropriate RE at the end of year 2?

Answer 6

$0 - since the shed was complete there is no longer appropriate RE

MCQ-01058