Generally Accepted Accounting Principles (GAAP), Finance And Accounting

Question: Which of the following words describes a situation when a contingent liability should be recorded?
A
Remote

B
Probable

C
Possible

D
Never

Note: Answer not sure
1. Report
Question: Which of the following would be considered a discontinued operation?
A
A dog food manufacturer decides to stop offering low fat dog food because it doesn't make money.

B
A library decides to stop carrying kids' novels.

C
A stock brokerage goes out of business.

D
A jacket manufacturer decides to sell its rain coat division which has its own plant.

Note: Answer not sure
1. Report
Question: Which of the following would qualify for capitalization of interest?
A
An inventory item which takes 1 week to process

B
A ship which is built over 2 years

C
A loan taken by a company to fund general operations

D
A mechanic's lien placed on the company

Note: Answer not sure
1. Report
Question: What is the effect of a stock split on a company's financial records?
A
It depends on the value of the stock and the number of shares which are split.

B
It creates a Credit to Common Stock.

C
None; it changes the number of shares outstanding but not the value of the stock.

D
It creates a Debit to Common Stock.

Note: Answer not sure
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Question: What is the alternative to the capitalization of interest costs?
A
Do not account for them at all

B
Expense interest costs

C
Create an current asset

D
Record them as equity

Note: Answer not sure
1. Report
Question: What is the general rule regarding the reporting of comprehensive income?
A
That it should not be shown as it is misleading

B
That comprehensive income should be calculated and prominently displayed on financial reports

C
That it should be mailed in a letter to all shareholders

D
That it should only be calculated yearly

Note: Answer not sure
1. Report
Question: Which of the following is not a part of inventory?
A
Finished Goods

B
Work in Progress

C
Raw Materials

D
Cost of Goods Sold

Note: Answer not sure
1. Report
Question: Which of the following would be included in comprehensive income?
A
Interest expense on a loan

B
Write off of an accounts receivable

C
Accounts payable in dispute

D
All of these

Note: Answer not sure
1. Report
Question: How is the interest cost to be capitalized calculated?
A
By taking into account the interest cost on the borrowings made to complete the asset

B
By using the average market rate

C
By following the Federal reserve rate

D
By following the interest rate on the company's savings account

Note: Answer not sure
1. Report
Question: Which of the following would be booked as a contingency?
A
Company A is close to acquiring Company B.

B
Company B sells Company A.

C
Company A pays for a large inventory order.

D
Company B makes a large sale.

Note: Answer not sure
1. Report

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Question: Which of the following words describes a situation when a contingent liability should be recorded?

Question: Which of the following would be considered a discontinued operation?

Question: Which of the following would qualify for capitalization of interest?

Question: What is the effect of a stock split on a company's financial records?

Question: What is the alternative to the capitalization of interest costs?

Question: What is the general rule regarding the reporting of comprehensive income?

Question: Which of the following is not a part of inventory?

Question: Which of the following would be included in comprehensive income?

Question: How is the interest cost to be capitalized calculated?

Question: Which of the following would be booked as a contingency?