Quiz Touch Ups

Question 0

Where/How would a gain on Remeasuring a foreign subsidiary’s financial statements from the local currency into the functional currency that occurred in the current year be classified in the financial statements?

Answer 0

Income from continuing operations

With separate disclosure on face of statement or in notes

Question 1

Investments in equity securities with a readily determinable market value are reported at…

Answer 1

Market value on that date

Question 2

Net assets of internal service funds are reported with…

2) Why?

Answer 2

Governmental activities in government wide financial statements

Because these activities are more governmental than business
Type in nature

Question 3

Enterprise funds are reported as what in government wide financial statements?

Answer 3

Business type activities

Question 4

In a business combination problem when you see an investment in sub equity method line item…

Answer 4

Only calculate parent’s stockholder’s equity

Question 5

In the statement of cashflows under the indirect method a gain on sale of equipment…

Answer 5

Would be deducted from operating activities

Question 6

If an entity reports a cumulative effect of a change in accounting principle, it shall present…

Answer 6

Basic and diluted EPS for cumulative effect of change in accounting
Principle

Question 7

What is the entry for a reissuance of stock for less cash, where it exceeds over par raised at issuance under the cost method?

Answer 7

Cash. Xxx
Pic. Xxx
R/E. Xxx
T/S. Xxx

Question 8

Non profit hospital:

Operating results are reported among…

Answer 8

Total changes in unrestricted net assets

Question 9

Non profit hospital:

Revenues from educational would be considered…

Answer 9

Other operating revenues

Question 10

Non profit hospital:

Gifts and contributions would…

Answer 10

Not be considered operating revenues

Question 11

Non profit hospital:

Operating results reported among total changes in unrestricted net assets is an indicator that is analogous to…

Answer 11

Income from continuing operations in a for profit enterprise

Question 12

In quarterly financial statements, extraordinary items should be…

Answer 12

Recognized Totally in the period where they occurred

Question 13

Gain or loss resulting from changes in fair value of cash flow hedge is included in…

Answer 13

Other comprehensive income

Question 14

Gain or loss resulting from changes in fair value of fair value hedge is included in…

Answer 14

Net income in period where change in fair value takes place

Question 15

GASB requires a summary reconciliation between…

Answer 15

Fund financial statements and government wide financial statements

Question 16

Under GASB for a reconciliation, Capital asset purchases and payments of long term debt principal would be considered…

Answer 16

Expenditure reductions of government fund balances and

Would be added back

Question 17

Under GASB for reconciliation, the book value of capital assets sold during the year…

Answer 17

Requires subtraction to reconcile to changes in net assets

Question 18

Issuance of rights to existing shareholders without consideration is recorded as…

Answer 18

A memo entry only

Question 19

Issuance of rights to existing shareholders without consideration, when rights are then exercised…

Answer 19

Cash increases as well as common stock and paid in capital

Question 20

Deferred income tax expense equation

Answer 20

Deferred income tax expense =

Temporary differences x effective tax rate

Question 21

If a non interest bearing note due in 3 years is issued in connection with a contract to purchase merchandise…

Answer 21

A discount on notes receivable exists

Question 22

When should warranty costs be recognized for sale of machines with warranty?

Answer 22

When machines are sold

Question 23

During exchange of assets if, the asset given up has a fair value that is less than its carrying amount, when should a loss be recognized?

Answer 23

An impairment loss should be recognized before exchange is

recorded

Question 24

In the year 20X2, When an asset decreases in value by $50,000 and a company values its equipment using the revaluation model under IFRS, How is the decrease in asset recorded?

Answer 24

Decrease the operating income in 20X2 by decrease in FV

of $50,000

Question 25

Costs of one time termination benefits are recognized and measured at fair value at…

Answer 25

It’s communication date (to employees fired)

Question 26

On January 28th 20X2, before the issuance of its 20X1 financial statements, Cali issued long term bonds and used the proceeds to repay a note payable that was due on March 20X2. How should Cali classify the note in its December 20X1 financial statements?

Answer 26

As Noncurrent liability, with separate disclosure of note refinancing

Question 27

When an entity undertakes an obligation to service financial assets (collecting principal, interest, etc.) it should recognize…

Answer 27

Either servicing asset or liability

Question 28

Servicing assets

Answer 28

Total servicing revenue is expected to exceed total servicing costs

Question 29

Servicing liabilities

Answer 29

Total servicing costs are expected to exceed total servicing revenues

Question 30

Under any basis of accounting for income taxes, expenses are deductible only when…

Answer 30

Paid or accrued

Question 31

Under cash basis of accounting to determine taxable income…

Answer 31

There is no current deduction for capital expenditures

Question 32

The expense for capital expenditures will be recognized in the form of…3

Answer 32

Depreciation, amortization or depletion

Question 33

When a $10,000 note receivable with 3% interest is calculated on an outstanding balance, with interest payable at maturity (in 5 years) and a present value of $1 due in 5 years = .6806, how do you calculate the amount for the note receivable?

Answer 33

Present value of note = maturity amount x present value factor
= ($10,000 + (3% x $10,000 x 5 yrs)) + .6806

Question 34

Short term obligations should be reported as long term liabilities if a company…2

Answer 34

1 intends to refinance the short term obligation on long term basis
And

2 demonstrates ability to refinance it on long term basis

Question 35

For generating proceeds to refinance short term debt, Even if common stock is issued subsequent to the balance sheet date and before date of financial statement issuance…

Answer 35

This shows intent to refinance and classify short term debt on long
Term basis

Question 36

Trade in allowed calculation

Answer 36

Trade in allowed = price of asset - cash paid