Day 30

Question 1

How is revenue from charity care reported on a NFP Stmt of Activities?

Answer 1

It is NOT recorded as revenue or a receivable BUT it is disclosed

MCQ-04688

Question 2

What is Form 6-K?

Answer 2

Filled semiannually by foreign private issuer’s and contains unaudited FS

Similar to 10-Q

MCQ-06078

Question 3

Cash to Accrual steps:

Answer 3

1. ADD increases to CA
2. SUBTRACT decreases to CA
3. ADD decreases to CL
4. SUBTRACT increases to CL

MCQ-06929

Question 4

Net Realizable Value =

Answer 4

Selling Price LESS Cost to Complete

MCQ-06042

Question 5

What happens when accounting for a partnership withdrawal/dissolution under the bonus method?

Answer 5

Increases (or decreases) individual partners Capital accounts without changing total net assets of the partnership

MCQ-00881

Question 6

What should be recorded as a liability on the issuer’s books at the date of issuance?

Answer 6

Common Stock that contains an unconditional redemption feature

Bc there is an obligation of a cash outflow in the future that the company has no ability to PREVENT

MCQ-08252

Question 7

For troubled debt restructuring involving only a modification of terms, what would be compared to the carrying amount to determine gain or loss?

Answer 7

Carrying Amount - Total Future Cash Payments = Gain

MCQ-00519

Question 8

In preparing interim FS assuming no changes in accounting principles were implemented, ABC Corp would apply generally accepted accounting principles:

Answer 8

Used in the most recent annual report

MCQ-04466

Question 9

A 20 year property lease classified as an operating lease, provides for a 10% increase in annual payments every five years. In the 6th year compared to the 5th year the lease will cause an increase in Lease Expense and Interest Expense?

Answer 9

No and No

Rule: The Lessee will record an operating lease as lease expense under SL, the variable terms are known in advance

MCQ-00566