Far 3

Question 1

_________ accounts, __________ accounts and petty cash are considered cash and cash equivalents

Answer 1

Checking; depository

Question 2

Cash in _____ sinking fund is considered restricted

Answer 2

bond

Question 3

_______ will produce a lower inventory turnover ratio in an inflationary economy

Answer 3

LIFO

Question 4

__________materials and labor, _________ materials and labor and insurance are all costs that are counted in inventory on the balance sheet

Answer 4

Direct; Indirect;

Question 5

a corporation preparing it’s FS should use GAAP principles used in the most recent ________ ___________

Answer 5

annual report

Question 6

200% declining balance depreciation method is calculated by the straight-line rate times _________: 1/10 * 200% = 20%

Answer 6

200%

Question 7

depletion base: __________ price + __________ cost + restoration cost - __________ value

Answer 7

purchase; development; expected

Question 8

when a permanent impairment occurs, the book value is __________ and a loss is recorded and the loss is added to _________ __________ account

Answer 8

reduced; accumulated depreciation

Question 9

Net realizable value = Amount ____________ can be sold for - at ___________cost

Answer 9

INVENTORY; DISPOSAL

Question 10

Depreciable property constructed on leased land is depreciated either over the _______ of the property or the term of the ___________, whichever is shorter

Answer 10

LIFE; LEASE

Question 11

A ___________ is subject to the recoverability test when testing for impairment

Answer 11

PATENT

Question 12

___________ expense is the increase in the ARO due to the passage of time

Answer 12

ACCRETION

Question 12

Accretion expense =___________ ARO * _________ adjusted rate

Answer 12

BEGINNING ARO; RISK

Question 13

Composite or Group depreciation is the process of __________ the economic lives of a number of property units depreciating the entire class of assets over a single life

Answer 13

AVERAGING

Question 14

Cost allocated to Land cost are filling in a ____ or ________ and cost allocated to building cost are _______ a hole for the foundation

Answer 14

HOLE; LEVELING; DIGGING;

Question 15

To calculate COGS __________ inventory + _________ - purchase __________ + freight in - ___________ inventory

Answer 15

BEGINNING; PURCHASES; DISCOUNTS; ENDING

Question 16

In calculating COGS ________ ___ is not included because it is a selling expense (i.e. period expense)

Answer 16

FREIGHT-OUT

Question 17

Estimated restoration cost should be _______ to the depletable base of the natural resource

Answer 17

ADDED

Question 18

R&D expenses are __________ in the year incurred. Legal costs of applying for a patent and legal costs to defend the rights of the patent are ____________

Answer 18

EXPENSED; Capitalized

Question 19

Sum of the years depreciation method: take the depreciation years and sum them up e.g. depre of 4 years ( 4+3+2+1) =10. In year 1 multiply the ________ base by 4 (amount of years left over) /10

Answer 19

DEPRECIABLE

Question 20

Dividend from prior year received in current year is included in current year _________ operations

Answer 20

CONTINUING