Far 1

Question 1

Net Concept records ____ and ___ at their net amounts (i.e. proceeds less book value)

Answer 1

GAINS; LOSSES

Question 2

Single Step Income Statement

Answer 2

Includes total revenues and purchase discounts are not included

Question 3

Accounting formula

Answer 3

A = L + OE

Question 4

Discount on bonds payable is ____________ when adding liabilities

Answer 4

subtracted

Question 5

Other Income on IS Consists of _______ on available for sale securities

Answer 5

Gain

Question 6

Form 8k reports on major__________ events including change in a registrant’s certifying __________, creaunregistered sale of equity securities and creation of off- balance sheet arrangement of registrant.

Answer 6

Coporate; Accountant

Question 7

Quarterly results of operations are reported on Form ____________

Answer 7

10Q

Question 8

Basic EPS = Net __________-___________Dividends / Weighted __________stock outstanding

Answer 8

income; Prefered; Common

Question 9

Diluted EPS = ___________ available to the ___________ stock shareholder + __________ of dilutive securities / weighted average number of ___________ shares (assuming all dilutive securities are converted to common stock)

Answer 9

income; common; interest; common

Question 10

Adjusted NI= Net _________ + __________ Expense - ____ deduction

Answer 10

Income; Interest; Tax

Question 11

Cost method in calculating APIC includes the __________ of the ___________ shares

Answer 11

Reissuance; treasury

Question 12

Treasury stock - stock bought back by __________ reducing the amount of ____________ stock on the open market

Answer 12

the company; outstanding

Question 13

Stock held by a company should be a __________ to owners equity

Answer 13

reduction

Question 14

Arrears is money that is ______ and dividend arrears are recorded when a __________ is __________

Answer 14

owed; dividend; declared

Question 15

When using the cost method when accounting for treasury stock, the gain on sale of treasury shares is reported by increasing ___________

Answer 15

additional paid in capital

Question 16

Par (Legal) Method - under Par (legal) method APIC is debited for losses when TS is repurchased. RE is further reduced is not enough APIC to absorb loss. For all gains, APIC is credited.

Question 17

When a company plans to sell a group it owns, it can classify it as discontinued operations when the asset is classified as ___________

Answer 17

Held for sale

Question 18

Par Value method journal entry of a repurchase of stock includes a _______ to _________ stock, additional paid in capital and _________ ___________

Answer 18

Debit; treasury; retained earnings

Question 19

Gains on foreign exchange rates are included in Net _________ before ___________ Operations

Answer 19

income; discontinued

Question 20

Transaction settled for 120,000 usd when contract was for 80,000 pounds at 1.60 would imply a exchange rate of 120/__ =1.5 which would be a gain of ___ -1.5 *80000

Answer 20

80;1.6

Question 21

____________ adjustments, __________ gains on AFS, _________ currency item, and __________ specific credit risk are all included in other ______________ income

Answer 21

pension, unrealized; foreign; instrument; comprehensive

Question 22

Impairment loss = ________ Value - FMV of _________

Answer 22

Book; Assets

Question 23

Adjusted shares outstanding is shares ____________ - common + conversion of ___________ shares + conversion of ________

Answer 23

outstanding; preferred; bonds

Question 24

a company that is an accelerated filer that is required to file a form 10k has ____ days from year end to file the 10k

Answer 24

75

Question 25

Straight-line amortization: ________ expense is reported each period

Answer 25

INTEREST

Question 26

Effective interest amortization

Answer 26

The amount of interest rate amortized over the life of a bond. A method used to write down an asset

Question 27

a transaction denominated in a foreign currency is recorded at the _____ rate on the date of the transaction

Answer 27

spot

Question 28

a company is required to present balance sheets on form 10Q in which period? ans. The end of the _______ ______ year

Answer 28

preceding fiscal

Question 29

When calculating accumulated other comprehensive income you should include unrealized loss on AFS and actual return on pension plan assets? (T or F)

Answer 29

FALSE; unrealized loss doen’t go to accumulated OCI and actual return on plan assets is not a part of AOCI.

Question 30

Does amortization of actuarial pension loss increase or decrease accumulated other comprehensive income?

Answer 30

ACTUARIAL PENSION LOSS WILL INCREASE AOCI

Question 31

Are Nonmonetary exchanges of common stock for productive assets included in comprehensive income?

Answer 31

NO

Question 32

Unrecognized prior service cost ________ OCI and unrecognized pension gains ________ OCI

Answer 32

DECREASE; INCREASE

Question 33

Cumulative dividends included the all years outstandings

Question 34

Nonmonetary exchanges of common stock for productive assets is not found in ____________ income

Answer 34

COMPREHENSIVE

Question 35

To calculate basic earnings per share________ _______ number of common shares must be calculated

Answer 35

WEIGHTED AVERAGE

Question 36

Other Comprehensive income is reported ____ of ______ when reporting comprehensive income

Answer 36

NET; TAX

Question 37

what is the purpose of comprehensive income

Answer 37

to summarize all change in equity from nonowner sources

Question 38

Preferred stk dividends are paid on ____ value not on ____ price.

Answer 38

PAR; SALES

E.G. after dividends in arrears have been paid, stock div to be paid = (4000sh * $100 * 6%)

Question 39

How are stock dividends and stock splits treated?

Answer 39

They are treated as if they happened at the beginning of the year