Day 7 - 17% FAIL

Question 1

How is a change in depreciation method handled?

Answer 1

As a change in estimate and acctg principle

PROSPECTIVELY

MCQ-00221

Question 2

Land costs equal:

Answer 2

All costs to acquire the land and get it ready for use

Removal of old building is included in land costs

MCQ-05422

Question 3

At what value are non-cash transactions of investing and financing activities reported on the Stmt of Cash Flows?

Answer 3

At FMV

Issuing stock for a building

MCQ-04518

Question 4

Using the indirect method to prepare cash flows, how is a loss on the sale of FA treated?

Answer 4

An addition to meet income

MCQ-08499

Question 5

When a property dividend is declared and the market value of the property exceeds its book value, the excess

Answer 5

Increases net income for the period

MCQ-04502

Question 6

Bonds that are purchased at a discount and held to maturity are reported at their:

Answer 6

Amortized cost

MCQ-00266

Question 7

Dividends received is reported where on the Stmt of Cash Flows?

Answer 7

Operating activities

MCQ-05677

Question 8

You sell a FA, how would the Gain and loss be affected if you is the sum of digits vs double declining method for depreciation?

Answer 8

Gain = decrease
Loss = increase

MCQ-00377

Question 9

Quick Ratio

Answer 9

Current Asset / Current Liabilities

EXCLUDE: Inventory and Prepaids

MCQ-02637

Question 10

ABC owns 90% of Tesla and 100% of Space X. Tesla and Space X declare $100k of dividends, how much should be reported in ABC FS?

Answer 10

$10k of Dividends

The only amount that should appear on the consolidated FS is the amount paid to OUTSIDERS

MCQ-06919

Question 11

The most adventurous market is the one that generated the:

Answer 11

Highest Net Price after considering transaction costs

MCQ-04281

Question 12

Are Contingent Shares included in basic EPS calc?

Answer 12

Yes

Only if all conditions are net as of the date

MCQ-01105