Generally Accepted Accounting Principles (GAAP), Finance And Accounting

Question: Which of the following would be an accounting change which would require a restatement of the previous financial reports?
A
Change in how many stock options were issued to a director, made effective retrospectively from the previous year

B
Paying arrears to a laid off employee

C
The firing of an employee which has been planned for two months in advance

D
Change in the management's salary going forward, but discussed last year

Note: Answer not sure
1. Report
Question: What is stock dividend as compared to cash dividend?
A
The issuance of cash which can only be used to buy stock

B
The issuance of additional stock to shareholders in lieu of cash

C
The issuance of stock in the current period, traded for cash in a later period under contract

D
A promise by the company that the stock price will increase

Note: Answer not sure
1. Report
Question: Which FASB Statement addresses accounting for earnings per share?
A
FASB 128

B
FASB 55

C
FASB 144

D
FASB 12

Note: Answer not sure
1. Report
Question: Which of the following is a requirement for interest costs to be capitalized?
A
The rate must exceed 10%.

B
The period of capitalization must be at least 2 years.

C
The asset requires a period of time to ready it for use.

D
The firm must have specific loans on the project.

Note: Answer not sure
1. Report
Question: What is the general rule for accounting for inventory?
A
It should be accounted for at fair market value.

B
It should be accounted for at cost.

C
It should be accounted for at a set gross margin rate.

D
The method can vary depending on the nature of the inventory item.

Note: Answer not sure
1. Report
Question: What impact may a financial report restatement have on the current share price?
A
It always leads to an increase in the price.

B
It depends on the nature and magnitude of the correction.

C
It always leads to a decrease in the stock price.

D
It has no impact at all.

Note: Answer not sure
1. Report
Question: What is meant by "hedging"?
A
Selling of derivatives

B
The activity of mitigating risk, using one instrument to lower the overall risk of a portfolio

C
Purchasing stocks in several industries to mitigate risk

D
Selling company stock at an inflated value

Note: Answer not sure
1. Report
Question: Which FASB statement addresses convertible debt?
A
FASB 12

B
FASB 101

C
FASB 144

D
FASB 150

Note: Answer not sure
1. Report
Question: What is meant by the term "dilution"?
A
It is just another term for common stock.

B
Common stock plus preferred stock

C
The number of shares that would be outstanding if all options and other contracts related to shares were executed

D
Common Stock and other equity

Note: Answer not sure
1. Report
Question: What is comprehensive income?
A
Income less any taxes

B
Income from the main product line, without clubbing the income from other product lines

C
Income including all extraordinary items

D
Normal income including revenues, cogs, expenses, gains and losses

Note: Answer not sure
1. Report

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Question: Which of the following would be an accounting change which would require a restatement of the previous financial reports?

Question: What is stock dividend as compared to cash dividend?

Question: Which FASB Statement addresses accounting for earnings per share?

Question: Which of the following is a requirement for interest costs to be capitalized?

Question: What is the general rule for accounting for inventory?

Question: What impact may a financial report restatement have on the current share price?

Question: What is meant by "hedging"?

Question: Which FASB statement addresses convertible debt?

Question: What is meant by the term "dilution"?

Question: What is comprehensive income?