ACCT 301A - CSUF WILEY FINAL EXAM
COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
If a company uses the gross method of recording accounts receivable
from customers, then sales discounts taken s could be recoded as....
Ans: a deduction from sales in the income statement
Question: GAAP specifies, regarding the amortization of a premium
or discount on a debt security, the...
Ans: effective interest method allocation should be used but other
methods can be applied if there is no material difference in the results
obtained
Question: Which of the following costs are capitalized for self-
constructed assets?
Ans: Materials, labor and overhead directly rerouted to construction
only
Question: Which of the following is not considered cash for financial
reporting purposes?
Ans: posted checks and IOUs
,Question: Why do companies provide trade discounts?
Ans: to avoid frequent charges in catalogs and to easily alter prices
for different customers
Question: Which of the following statements is true regarding
recovery of impairment on an intangible asset?
Ans: GAAP allows for recovery of impairment for asters help up for
sale up to net realizable value
Question: Plant assets purchases on long-term credit contracts should
be accounted for at...
Ans: the present value of the future payments
Question: Debt securities acquired by a corporation which are
accounted for by recognized unrealized holding gains or losses as
other comprehensive income and as a stockholders' equity are...
Ans: avaliable-for-sale debt securities
Question: The notes to the financial statements should include info
about acquired intangible asset and aggregate amortization expense
for how many succeeding years?
, Ans: 5 years
Question: In a business combination, companies record identifiable
intangible assets that they can reliably measure. All other intangible
assets, too difficult to identify or measure re recorded as ....
Ans: goodwill
Question: the coverability test compares...
Ans: the carrying value of the asset to its undercounted expected
future net cash flows
Question: for the composite methods, the composite...
Ans: life is the total depreciation base divided by the total annual
depreciation
Question: When a company is acquired, which of these intangible
assets, unrecorded on the acquired company's books, might be
recorded in attention to goodwill?
COMPLETE QUESTIONS AND CORRECT
ANSWERS | GRADED AND THE LATEST SERIES
If a company uses the gross method of recording accounts receivable
from customers, then sales discounts taken s could be recoded as....
Ans: a deduction from sales in the income statement
Question: GAAP specifies, regarding the amortization of a premium
or discount on a debt security, the...
Ans: effective interest method allocation should be used but other
methods can be applied if there is no material difference in the results
obtained
Question: Which of the following costs are capitalized for self-
constructed assets?
Ans: Materials, labor and overhead directly rerouted to construction
only
Question: Which of the following is not considered cash for financial
reporting purposes?
Ans: posted checks and IOUs
,Question: Why do companies provide trade discounts?
Ans: to avoid frequent charges in catalogs and to easily alter prices
for different customers
Question: Which of the following statements is true regarding
recovery of impairment on an intangible asset?
Ans: GAAP allows for recovery of impairment for asters help up for
sale up to net realizable value
Question: Plant assets purchases on long-term credit contracts should
be accounted for at...
Ans: the present value of the future payments
Question: Debt securities acquired by a corporation which are
accounted for by recognized unrealized holding gains or losses as
other comprehensive income and as a stockholders' equity are...
Ans: avaliable-for-sale debt securities
Question: The notes to the financial statements should include info
about acquired intangible asset and aggregate amortization expense
for how many succeeding years?
, Ans: 5 years
Question: In a business combination, companies record identifiable
intangible assets that they can reliably measure. All other intangible
assets, too difficult to identify or measure re recorded as ....
Ans: goodwill
Question: the coverability test compares...
Ans: the carrying value of the asset to its undercounted expected
future net cash flows
Question: for the composite methods, the composite...
Ans: life is the total depreciation base divided by the total annual
depreciation
Question: When a company is acquired, which of these intangible
assets, unrecorded on the acquired company's books, might be
recorded in attention to goodwill?
