Day 29 / Re-Review

Question 1

ABC has a $10 million note payable that is due 3 months after YE. The note payable was refinanced when LT bonds were issued 1 month after YE for $11 million. The 12/31 FS were issued 2 months after YE. How should the note payable be classified?

Answer 1

Classified as a Non-Current Liability and disclosed in the FS

MCQ-08887

Question 2

When are gains and losses disclosed vs accrued?

Answer 2

Losses that are Probable and can be reasonably estimated are ACCRUED

Losses that are Reasonably Possible = DISCLOSE

Note: Gains are not ACCRUED just DISCLOSED

MCQ-08510

Question 3

Define: Cash Equivalents

Answer 3

Highly liquid investments convertible into cash by 90 days or less from the date of purchase

Note: Overdrawn Checking accounts in the SAME BANK can offset positive Checking accounts

MCQ-00056

Question 4

Define: Net Assets Without Donor Restrictions

Answer 4

Funds not restricted by External Donors

Board of Trustees can designate funds for a specific purpose and still be Net Assets Without Donor Restrictions

MCQ-08621

Question 5

What are the most common Functional Expense Categories for Not-For-Profit?

Answer 5

1. Program Services
2. Support Services

may also include:
3. Fund-Raising & Management & General

MCQ-05927

Question 6

Where are foreign exchange transactions, gains and losses that result from changes in interest rates reported?

Answer 6

the Income Statement

MCQ-07422

Question 7

Equation: Price Index

Used in Dollar-Value LIFO

Answer 7

= Ending Inventory at CY Costs / Ending Inventory at Base Year Costs

MCQ-01825