Select Financial Statement Accounts

Question 1

What inventory method will produce a lower inventory turnover ratio in an inflationary economy?

Answer 1

FIFO

Question 2

Weighted average cost of inventory formula

Answer 2

COG Available/Units Available for Sale

Question 3

A long lived asset classified as held for sale (disposal) is measured at what?

Answer 3

Lower of its carrying amount or fair value less cost to sell

Question 4

Investment in equity securities accounting method - what method for each?

1. Less than 20%, passive interest
2. 20% - 50%, significant influence
3. Greater than 50%, controlling

Answer 4

1. Fair value method
2. Equity method
3. Consolidation

Question 5

Revenue recognition Steps (COPAS)

Answer 5

1. Contract
2. Obligations
3. Price
4. Allocation
5. Satisfaction