MISC WRONG QUESTIONS Flashcards
A nongovernmental not-for-profit organization’s statement of activities is similar to which of the following for-profit financial statements?
Income statement.
What is the formula for inventory turnover?
Cost of goods sold ÷ average inventory
Will the final consolidated financial statements will be the same regardless of the method used by the parent on its books
Yes, because, only the details of the process of developing those statements will be different
How do you calculate Operating Income
Sales - Less: provision for returns =Net sales
COGS -Less: provision for returns= Net COGS
Net COGS -Less: Return for processing cost=Operating profit
How do you calculate the cost of goods manufactured?
Cost of goods brought to completion. Example: x=Cost of goods manufactured + finished goods beginning inventory - finished goods ending inventory =cost of sales
When are contingencies accrued? and how are the disclosed when probable or possible?
when the occurrence of the liability is probable and the amount can be reasonably estimated. contingencies are disclosed when reasonably possible.
Which one of the following would be included in the asset section of the balance sheet for Co. A?
A. Treasury stock of Co. A at cost, with approximates market value on December 31.
B. Idle Machinery
C. Cash surrender value of life insurance on corporate executives
d. allowance for decline in market value of noncurrent equity investments
All but the treasury stock of Co. A.
A firms treasury stock is not an asset of that firm. A firm cannot own it’s own stock.
Which of the following transactions should be classified as Investing Activities on an entity’s Statement of Cash Flows?
A. Increase in accounts receivable.
b. Sale of property, plant and equipment.
C. Payment of cash dividend to the shareholders.
D. Issuance of common stock to the shareholders.
B. Sale of property, plant and equipment
