MCQ-Day 37 - 73% FAIL

Question 1

What is the primary difference between Level 2 and Level 3 inputs in the Fair Value Hierarchy ?

Answer 1

Level 2 are OBSERVABLE

Level 3 are NOT observable and require significant estimation and judgement

Question 2

What report is used for the Allowance for Uncollectible accounts?

Answer 2

AR Aging

MCQ-00060

Question 3

When Morgan retired from Morgan Wingate Cenci, LLP, the final settlement of Morgan’s interest exceed his Capital balance. Under the bonus Method the excess:

Answer 3

Reduced Wingate’s and Cenci’s Capital balance by their profit and loss ratios

MCQ-00724

Question 4

Costs associated with exit and disposal activities:

Answer 4

1. Involuntary employee termination benefits
2. Cost of terminating a contact (NOT A LEASE)
3. Costs to consolidate facilities
4. Employee relocation costs

MCQ-06065

Question 5

Formula: Double Declining Depreciation

Answer 5

= 2 × [ 1 / Years ] × (Cost - AD)

MCQ-05651

Question 6

Rule: Allocate “Issue Proceeds” of convertible preferred stock based on:

Answer 6

Fair Market Values

MCQ-01534

Question 7

Balance determination: AD

MCQ-00147