FAR 1C

Question 1

A company that is a large accelerated filer must file its Form 10-Q with the United States Securities and Exchange Commission within how many days after the end of the period?

Answer 1

40 days

Question 2

A company is an accelerated filer that is required to file Form 10-K with the United States Securities and Exchange Commission (SEC). What is the maximum number of days after the company’s fiscal year end that the company has to file Form 10-K with the SEC?

Answer 2

75 days

Question 3

Discontinued operations is not a revenue; rather, it is a special item of disclosure found

Answer 3

below income from continuing operations in the Income Statement.

Question 4

What Item is not subject to the application of intra-period income tax allocation?

Answer 4

Operating income

Question 5

Items of income that are unusual or infrequent, but not both, are separately reported as

Answer 5

components of income from continuing operations

Question 6

Contingencies are accrued and recognized as a liability when the occurrence of the liability is

Answer 6

probable and the amount can be reasonably estimated

Question 7

What is the purpose of reporting comprehensive income?

Answer 7

To summarize all changes in equity from nonowner sources.

Question 8

Comprehensive income for a period is the:

Answer 8

Sum of net income and other comprehensive income for the period.

Question 9

The components of comprehensive income are:

Answer 9

1. Net Income 2. Unrealized gain/loss on AFS securities 3. Foreign currency translation adjustment 4. Unrecognized gain/loss on pension benefits 5. Deferred gain/loss on certain hedging transactions

Question 10

When a full set of general-purpose financial statements are presented, comprehensive income and its components should:

Answer 10

Be presented as part of the Income Statement or as a separate a financial statement following the Income Statement.

Question 11

Reporting accounts receivable at net realizable value is a departure from the accounting principle of:

Answer 11

Historical cost

Question 12

Other comprehensive income is comprised of

Answer 12

1. Unrealized gains/losses on available-for-sale securities 2. Minimum pension liability adjustment 3. Foreign currency translation adjustment 4. Unrealized gains/losses on cash flow hedges