Quiz 9-11 Wrong Answers Flashcards Preview

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Flashcards in Quiz 9-11 Wrong Answers Deck (13):
0

Realized GP calculation

Realized GP = cash collections x GPR

1

If the expenditure benefits periods other than current period it...

Should be capitalized

2

Betterments

Large dollar amounts, nonrecurring in nature


That increase the utility of asset by decreasing production costs

3

Ticket proceeds received in advance for a theatrical performance should be recorded as...

2) if the production were to get cancelled, the proceeds...

Unearned revenue for the entire proceeds

2) would be refunded

4

When a company is obligated to pay a specified amount to a supplier, even if it does not take the delivery of contracted goods it has...

An unconditional purchase agreement

5

How are unconditional purchase commitments disclosed to financial statement users?

2) how are they valued?

Not reported on the balance sheet, but disclosed in the notes of
The financial statements

2) at present value of future required payments

6

When merchandise is not included in inventory in the previous year, the adjustment entry for net income will have what effect on net income?

Increase net income

7

Voluntary changes in accounting principle, should be recognized using the retrospective approach, in which the cumulative effect is reported as an adjustment of the...

Beginning year retained earnings of the earliest year presented

8

Loss on discontinued operations is part of net income that changes equity, therefore it is part of of...

Comprehensive income

9

An increase in the estimated quantity of copper recoverable from its mine represents...

A change in accounting estimate

10

Which of the following are general and administrative expenses?
1 accounting and legal fees
2 freight in
3 freight out
4 officers salaries
5 insurance
6 sales representatives salaries

1 accounting and legal fees

2 officers salaries

3 insurance

11

Freight in would be part of...

COGS and/or inventory

12

Freight out and sales representative salaries are part of...

Selling expenses