NINJA MCQ - Conceptual Framework, Standards, Standard Setting, and Presentation of FS

Question 1

How long after the end of the period is form 10Q due?

Answer 1

40 days

Question 2

How is amortization of bond discount presented using the indirect method on the statement of cash flows?

Answer 2

It is added to net income to compute net cash provided by operating activities.

Question 3

How is accrual based net income calculated?

Answer 3

Cash based net income +/- decrease/increase in liabilities +/- increase/decrease in assets

Question 4

SEC Regulation S-X provides guidance for the issuer regarding:

Answer 4

format and content of financial information submitted to the SEC.

Question 5

How is receivables turnover in days calculated?

Answer 5

365/receivables turnover

Receivables turnover = net sales/average inventory

Question 6

On the statement of cash flows, what are included in investing activities?

Answer 6

Investing activities involve asset transactions other than those related to operating results

Question 7

Which entity develops and distributes accounting standards for nongovernmental, nonprofit entities?

Answer 7

FASB

GASB is only for governmental entities

Question 8

With respect to the qualitative characteristics of useful financial information, what are U.S. GAAP and IFRS differences?

Answer 8

With the issuance of SFAC 8, chapter 3, U.S. GAAP and IFRS have the same “Qualitative Characteristics of Useful Financial Information.”

Question 9

During a period when an enterprise is under the direction of a particular management, its financial statements will directly provide information about:

Answer 9

enterprise performance but not directly provide information about management performance.

Question 10

How is the Form 10-K filed with the SEC?

Answer 10

The form must be filed electronically on EDGAR unless this filing causes hardship on the filing company.

Question 11

Convert cash net income to accrual:

Answer 11

Cash net income +/- increase/decrease in AR +/- decrease/increase in AP

Question 12

What is the purpose of SFAC 4 as stated in that concepts statement?

Answer 12

To provide a basis for establishing detailed accounting and reporting standards for nonbusiness entities

Question 13

Combined statements may be used to present the results of operations of:

Answer 13

both commonly controlled companies and companies under common management.

Question 14

How should plan investments be reported in a defined benefit plan’s financial statements?

Answer 14

At fair value