PA AUCTIONEER EXAM
list the four components of an "arm's length transaction" -
ANSWERS-no undo influence, duress, exposed, aware, unusual
Name four methods of title transfer - ANSWERS-voluntary
alienation, involuntary alienation, by will, by decent
what do the five lights at car auctions mean - ANSWERS-red- "as is",
green- some buyer protection as to its condition, yellow- certain
conditions announced prior to sale, blue- title absent
list the three physical characteristics of land - ANSWERS-immovable,
cannot destroy, unique
what is the definition of value - ANSWERS-present worth of a future
benefit
name the three classes of depreciation - ANSWERS-physical,
functional, economic
What is an appraisal? - ANSWERS-an opinion
Cost principle - ANSWERS-the actual amount paid or received is the
amount recorded in the accounting books
, objectivity principle - ANSWERS-each transaction is described by a
business document that proves the transition did occur
realization principle - ANSWERS-revenue from business transactions
is recorded at the time the goods or services are sold
full disclosure principle - ANSWERS-financial statements should
contain all information necessary for a reader to understand a business
financial condition
business entity concept - ANSWERS-a business' financial information
is recored and reported separately from a owner's financial
information
continuing concern concept - ANSWERS-financial statements are
prepared with the expectation that a business will remain in operation
indefinitely
time period concept - ANSWERS-changes in financial information
are reported for a specific period of time in the form of financial
statements
Balance Sheet - ANSWERS-the statement of a financial condition, is
the business sick or healthy? assets=liabilities+owners equity
A= L + O (accounting equation)
list the four components of an "arm's length transaction" -
ANSWERS-no undo influence, duress, exposed, aware, unusual
Name four methods of title transfer - ANSWERS-voluntary
alienation, involuntary alienation, by will, by decent
what do the five lights at car auctions mean - ANSWERS-red- "as is",
green- some buyer protection as to its condition, yellow- certain
conditions announced prior to sale, blue- title absent
list the three physical characteristics of land - ANSWERS-immovable,
cannot destroy, unique
what is the definition of value - ANSWERS-present worth of a future
benefit
name the three classes of depreciation - ANSWERS-physical,
functional, economic
What is an appraisal? - ANSWERS-an opinion
Cost principle - ANSWERS-the actual amount paid or received is the
amount recorded in the accounting books
, objectivity principle - ANSWERS-each transaction is described by a
business document that proves the transition did occur
realization principle - ANSWERS-revenue from business transactions
is recorded at the time the goods or services are sold
full disclosure principle - ANSWERS-financial statements should
contain all information necessary for a reader to understand a business
financial condition
business entity concept - ANSWERS-a business' financial information
is recored and reported separately from a owner's financial
information
continuing concern concept - ANSWERS-financial statements are
prepared with the expectation that a business will remain in operation
indefinitely
time period concept - ANSWERS-changes in financial information
are reported for a specific period of time in the form of financial
statements
Balance Sheet - ANSWERS-the statement of a financial condition, is
the business sick or healthy? assets=liabilities+owners equity
A= L + O (accounting equation)
