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FAR Quiz Average Round

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Income taxes were discussed under PAS (a)   ?

2.

In a corporate form of business organization, legal capital is best defined as

a)

the amount of capital the state of incorporation allows the company to accumulate over its existence

b)

the par value of all capital stock issued

c)

the amount of capital the federal government allows a corporation to generate

d)

the total capital raised by a corporation within the limits set by the Securities and Exchange Commission

3.

Which of the following is not acceptable treatment for the presentation of current liabilities?

a)

Listing current liabilities in order of maturity

b)

Listing current liabilities according to amount

c)

Offsetting current liabilities against assets that are to be applied to their liquidation

d)

Showing current liabilities immediately below current assets t o obtain a presentation of working capital

4.

The “amortized cost” of bonds payable means

a)

Face amount plus premium on bonds payable

b)

Face amount minus discount on bonds payable

c)

Face amount minus bond issue costs

d)

Face amount plus premium on bonds payable, minus discount on bonds payable and minus bond issue costs

5.

In order of priority, equity instruments issued to extinguish a financial liability shall be measured first at _________?

a)

Par value of the equity instrument issued

b)

Fair value of the liability extinguished

c)

Carrying amount of liability extinguished

d)

Fair value of the equity instrument issued

6.

A present obligation that is probable and the amount can be measured reliably is called?

(a)  

7.

During the year, Jantz Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $50,000 and the balance in the allowance account was $4,500. The net realizable value of accounts receivable after the write-off entry was

a)

$50,000

b)

$49,500

c)

$41,500

d)

$45,500

8.

On December 1, 2007, Lynn Corporation exchanged 20,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Lynn at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a market value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Lynn's total stockholders' equity will increase by

a)

200,000

b)

800,000

c)

1,100,000

d)

900,000

9.
a)

39,370

b)

38,940

c)

38,490

d)

38,470

10.

A P1,000,000, 180-day, 12% note dated July 1 was received from a customer and discounted without resource on August 30 at 15% discount rate.

Maturity value is ___.

a)

1,600,000

b)

1,007,000

c)

1,700,000

d)

1,060,000