Quiz 9-11 Wrong Answers Flashcards Preview

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

Realized GP calculation

Realized GP = cash collections x GPR


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

Should be capitalized



Large dollar amounts, nonrecurring in nature

That increase the utility of asset by decreasing production costs


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


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


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


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


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


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

Comprehensive income


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

A change in accounting estimate


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


Freight in would be part of...

COGS and/or inventory


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

Selling expenses