FAR2

Question 1

Inventory on consignment should be included in inventory at…

Answer 1

Cost

Question 2

Under IFRS a financial instrument is accounted for at _________ if the entity’s business model is to hold the asset to collect its cash flows. All others are reported at ___________.

Answer 2

amortized cost

fair value

Question 3

Only positive book cash balances should be recorded on the balance sheet unless…

Answer 3

The negative balance is from the same bank, then the amounts can be netted.

Question 4

A negative book cash balance should be recorded as a __________, unless it is from the same bank, then the accounts can be netted.

Answer 4

Liability

Question 5

A cash equivalent is any security that can easily be converted into cash within…

Answer 5

90 Days

Question 6

Checks written on 12/29/15, and mailed on 1/5/16 would be treated on the balance sheet as…

Answer 6

not written yet, and should be added back to cash to show the correct cash balance on 12/31/15.