Day 41 - 67% FAIL

Question 1

Calculate Rental Revenue under Accrual

Answer 1

Beg. Rent receivable
ADD: Accrued Billings
LESS: Cash Collections
LESS: Write-Offs
= Ending Rent Receivable

MCQ-00615

Question 2

What is true about valuation allowances in accounting for income taxes?

Answer 2

The effect of a change in opening balance of a valuation allowance that results from a change of circumstances is ordinary included in income from operations

MCQ-08595

Question 3

ABC changed from cash basis to Accrual. The cumulative effect of this change should be reported on ABC’s FS:

Answer 3

Prior Period adjustment resulting from a correction of error

Cash Basis accounting for financial reporting is not GAAP

MCQ-00051

Question 4

Where are Fair Value foreign currency transaction hedges reported?

Answer 4

Current Income

NOT OCI

MCQ-07436

Question 5

Capitalized Interest costs equal:

Answer 5

The SMALLER of total interest incurred or the Avoidable interest (weighted average)

MCQ-00136

Question 6

ABC owns 80% of Tesla’s stock. ABC advanced Tesla $100k, what amount should be reported as an advance on ABC’s consolidated BS?

Answer 6

$0

All intercompany transactions are eliminated upon consolidation

MCQ-06947

Question 7

What is true about LIFO vs FIFO during periods of rising prices?

Answer 7

LIFO - Current tax liability is lower and COGS is higher

MCQ-05291

Question 8

How is the purchase of a patent company bond by the subsidiary treated?

Answer 8

As if the bond were retired when the FS are consolidated

MCQ-00478