Becker CPA Financial Accounting and Reporting (FAR) Practice Exam

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• Under IFRS, when does impairment exist?
• What is the main objective of capital projects funds?
• How is implied goodwill treated when a partner withdraws using the goodwill method?
• In which financial statement do operating revenues typically appear for proprietary funds?
• Which of the following costs generally must be expensed concerning internally developed intangible assets?
• What defines a deferred tax asset (DTA)?
• How is an investor's equity method investment reported on the income statement?
• When are budgetary, actual, or encumbrance entries combined in accounting?
• How are direct out-of-pocket costs treated under the acquisition method?
• Which method of presenting cash flows from operating activities is preferred?
• Which factor does NOT determine if a disposal is reported in discontinued operations?
• How is charity care recognized in the financial statements of a health care organization?
• What are the three components of net position displayed on government-wide financial statements?
• How is a "business" defined in the context of reporting discontinued operations?
• What factors should management consider in evaluating substantial doubt about a going concern?
• What method is used to value equity securities typically?
• Which of the following is NOT capitalized as part of land acquisition?
• What characterizes goodwill under US GAAP?
• How can donor-imposed restrictions be defined?
• What are the classifications of net assets for non-profit organizations?
• What situation requires adjusting journal entries when cash is received before the performance obligation is met?
• Which of the following is NOT included in the internal financial reporting standards?
• Which of the following is NOT a major disclosure requirement for long-term debt?
• What measurement focus applies to proprietary funds?
• What is NOT a characteristic of treasury stock?
• What is the threshold percentage that differentiates small stock dividends from large stock dividends?
• Which of these is NOT typically included in disclosures for long-term debt?
• What accounting policy election can lessees make regarding leases with a term of 12 months or less?
• How are treasury stock transactions recorded under the par value method?
• What is the formula for calculating impairment loss under US GAAP?
• What should be done with intercompany profits in ending inventory?
• What indicates an overfunded status of a defined benefit pension plan under US GAAP?
• How are acquired identifiable intangible assets amortized if they have a finite useful life?
• What costs are capitalized for the acquisition of equipment?
• Which of the following is NOT a cost flow method for inventory?
• What timeframe do conditions for an ordinary annuity typically fall into?
• What type of cash flows are included in investing activities?
• How are unrealized gains and losses on trading securities classified?
• Which components are included in net periodic pension cost under US GAAP?
• What is a key characteristic of a Defined Contribution Plan?
• Which of the following methods is NOT used in creating a new partnership interest with an investment of additional capital?
• What does a refund liability represent in accounting?
• When is the translation method used for financial statements?
• What is the appropriate journal entry for the purchase of capital assets in a governmental fund?
• In finance and operating leases, how are interest payments treated in cash flows?
• Which financial statements are required for individual fiduciary fund types?
• What treatment is observed for other components of net periodic pension cost on the income statement?
• What is the preferred method of accounting for bond issuance costs under US GAAP and IFRS?
• What is the maximum period over which an identifiable intangible asset must be amortized?
• What type of asset should future services performed under a franchise agreement be recorded as?
• How is the gain or loss on early extinguishment of debt treated in a company's financial statements?
• How is goodwill impairment determined under U.S. GAAP?
• When does the capitalization period for interest begin?
• What are the two acceptable formats for reporting comprehensive income?
• Which revenue sources are typical for internal service funds?
• For internal service funds, what are revenues primarily categorized as?
• What is the key treatment of intangible assets with indefinite useful lives under US GAAP?
• Which depreciation method calculates depreciation based on years remaining and the sum of the years?
• What defines a derivative instrument?
• What is the primary purpose of an Endowment Fund in a nonprofit organization?
• What happens if the criteria for a sale are not met in a sale-leaseback transaction?
• What is a deferred tax liability?
• What is defined as comprehensive income?
• Which of the following is required when disclosing information if substantial doubt exists?
• Which entity is the primary authoritative body for GAAP for governmental entities?
• How is the quick ratio calculated?
• Where are gains and losses on investments typically reported in nonprofit financial statements?
• Which of the following is included in the common adjustments made to cash flows from operating activities using the indirect method?
• How should funded status be shown on the balance sheet for underfunded postretirement benefit plans under US GAAP?
• Which model can be used under IFRS for determining carrying value of assets?
• What are the two accounting treatment options available to a lessee for contracts with lease and nonlease components?
• In what order should creditors and partners be paid during the liquidation of a partnership?
• What does goodwill represent in accounting?
• How are tax rates applied in measuring deferred tax liabilities?
• Which of the following is classified as a common derivative instrument?
• According to SFAC No. 5, what should a full set of financial statements contain?
• Under which accounting framework is the LIFO inventory method prohibited?
• What does the fair value option allow entities to do under US GAAP?
• How should estimated liabilities for premiums, warranties, and service contracts be recorded?
• How is the journal entry for recognizing a purchase order of supplies recorded?
• What is the elimination entry for intercompany land transactions?
• What type of accounts do adjusting entries typically impact?
• What happens to an ARO in the periods following initial measurement?
• If an entity has substantial doubt about its ability to continue, what should management evaluate regarding mitigation plans?
• What method is used for measuring progress toward completion over time?
• When is a component unit presented discretely in the primary government financial statements?
• Which type of dividends should be reported in the financing section of a consolidated statement of cash flows?
• What distinguishes basic EPS from diluted EPS?
• Where are remeasurement gains or losses reported in the financial statements?
• When should refund liabilities be recognized by an entity?
• What does the "practicality exception" for equity securities allow?
• Who are considered primary users of general purpose financial reports?
• How should expenses be allocated in interim financial reporting?
• What is the pervasive constraint on the information provided in financial reporting?
• Which level of fair value input is considered the highest priority?
• Which of the following classes of cash disbursements is most commonly associated with operating activities?
• What is the main purpose of special revenue funds?
• How is the gain or loss determined in a troubled debt restructuring involving the modification of terms?
• What does the assigned classification of fund balances signify?
• For a performance obligation to be considered distinct, which condition must be met?
• What happens to the carrying amount of an asset in the event of an impairment loss?
• Which of the following are examples of nonmonetary items?
• What is the effective interest rate method?
• What is included in the Summary of Significant Accounting Policies note to the financial statements?
• Which of the following is a typical revenue source for a special revenue fund?
• What characterizes temporary differences?
• What is the purpose of the entry made by the lessor to recognize leases that transfer ownership?
• Gains and losses on asset disposal are reported as?
• Which of the following is considered a primary revenue account for health care entities?
• What is the primary consideration for establishing the fair value at the acquisition date for reporting purposes?
• Which is included among the required disclosures for segments of an enterprise?
• How are endowment funds typically established?
• In a consignment arrangement, which entity maintains control of the goods?
• Which criterion defines a NFP organization's economic interest in another entity?
• What defines the 10% "size" test in identifying reportable operating segments?
• How are intangible assets reported under IFRS?
• What is the accounting treatment for gain contingencies?
• What is the primary purpose of a debt service fund?
• What is the treatment of multi-year pledges when they are recognized?
• How are purchased intangible assets recorded under U.S. GAAP?
• Identify the major categories of funds used by state and local government units.
• What is the journal entry for a lessee recognizing a lease contract that transfers ownership in a governmental fund?
• What happens when one entity absorbs the expected losses from a VIE?
• Which of the following best describes internal service funds?
• What must occur when a security is transferred from the trading category?
• In what situation will a lessor classify a lease as a direct financing lease?
• What is a major requirement for depreciation under IFRS that is not required under US GAAP?
• What is reported in the required supplementary information associated with pension funds?
• What is one characteristic of the goodwill method when a new partner invests additional capital?
• What is the general treatment of research and development costs under US GAAP?
• What criteria must be met for a customer to obtain control in a bill-and-hold arrangement?
• What is a key weakness of the direct write-off method for uncollectible accounts?
• What is the role of the Financial Accounting Standards Board (FASB) in relation to NFP organizations?
• In the exact method, what factor determines the purchase price of the capital account purchased?
• What is defined as in-substance defeasance?
• When the lease qualifies as an operating lease, what is the initial journal entry for the lessee?
• What defines a short-term lease in governmental accounting?
• What is the purpose of computing diluted EPS?
• Which of the following is NOT a typical revenue source for the general fund?
• What does the 75% "reporting sufficiency" test evaluate?
• How are error corrections reported in financial statements?
• How is the allowance for uncollectibles treated in healthcare organizations?
• What distinguishes a principal from an agent in terms of revenue recognition?
• Which of the following can be classified as entities for reporting under discontinued operations?
• How does a lessee classify a lease when none of the "OWNES" criteria are met?
• What type of reporting is required for pension funds regarding changes in net pension liability?
• What is the nature of the funds involved when recognizing long-term debt in a governmental fund?
• Which financial statements are required for OCBOA presentations?
• How are gains and losses on financial instruments that hedge trading securities reported?
• Which classification of fund balances represents resources that are least limited in their use?
• How is fixed-asset carrying value computed under US GAAP?
• How are gains or losses recognized in a nonmonetary exchange with commercial substance under U.S. GAAP?
• Donor-imposed restrictions can be characterized as:
• When allocating the transaction price for a contract with multiple performance obligations, what should the allocation be based on?
• What type of intangible assets is included in the impairment test under both U.S. GAAP and IFRS?
• In the context of leases, what does the term "economic life" refer to?
• What is a recognized subsequent event?
• What defines a forward or call option arrangement in repurchase agreements?
• What kind of income do endowment funds provide for nonprofit entities?
• Which type of revenue includes unrestricted interest and dividend income in a healthcare entity?
• Which statement best defines cash equivalents?
• What is the typical treatment for donated works of art in governmental accounting?
• Leases that do not fall under the categories of short-term leases or contracts that transfer ownership are accounted for as what?
• What are the components included in the operating activities section of the statement of cash flows (SOCF)?
• How is a credit loss recognized for an AFS or HTM debt security?
• What is the primary purpose of the Private Company Council (PCC)?
• How do sales-type leases differ from direct financing leases?
• What can the gain or loss from discontinued operations include?
• How are contracts that transfer ownership treated in governmental accounting?
• What method consolidates a component unit with the primary government?
• What does the term "underlying" refer to in relation to derivative financial instruments?
• When a partner withdraws from a partnership, how is the bonus calculated under the bonus method?
• How is goodwill tested for impairment under IFRS?
• What is one goal of alternative accounting methods provided by the PCC?
• Which of the following is a common method for calculating depreciation?
• How are changes in accumulated balances of OCI components generally reported?
• When are contingent liabilities accrued?
• What are the minimum disclosure requirements on the government-wide statement of net position?
• What is the primary function of private purpose trust funds?
• What are the essential sections of external financial reports for governmental entities under GASB 34?
• What is the correct journal entry to recognize the acquisition of long-term debt in a governmental fund?
• How should tax effects of each component included in OCI be reported?
• As the net book value of fixed assets expires, it is recognized as which type of expense?
• Which is the first step in the five-step approach to revenue recognition?
• How should the payment of long-term debt be recorded in a governmental fund?
• What is the primary purpose of pension trust funds?
• What must be recognized if the sum of undiscounted future cash flows is less than the carrying amount of the asset under U.S. GAAP?
• What is the treatment of termination penalties in lease payments?
• How is an asset retirement obligation (ARO) initially measured?
• Which characteristic is typically associated with preferred stock?
• In the effective interest method, how is the amortization of bond premium calculated?
• Which of the following is included in the calculation of depletion for natural resources?
• Which of the following accurately describes the concept of diluted EPS?
• During periods of rising prices, the use of LIFO results in which effects on ending inventory and net income?
• What is considered the recoverable amount under IFRS?
• What does "fiduciary duties" refer to in the context of custodial funds?
• In a troubled debt restructuring involving the modification of assets, how is the gain or loss measured?
• Name the governmental fund type associated with general operations.
• Where are foreign currency transaction gains or losses reported in the financial statements?
• Which of the following are considered potentially dilutive securities?
• A classified balance sheet helps in assessing?
• What does the term variance power refer to in nonprofit accounting?
• If student tuition and fees are displayed at the gross amount, how are scholarships accounted for?
• What percentage of reported revenue indicates a reportable segment based on the 10 percent test?
• As inventory costs expire, what expense does it turn into?
• What is the cumulative effect of a change in accounting principle?
• What is the first financial statement required under US GAAP for a defined contribution plan?
• What does a classified balance sheet distinguish?
• What is the basic structure of the statement of net position for proprietary funds?
• How is a change in the accounting entity reported under U.S. GAAP?
• What does the "L" in the SELF mnemonic represent?
• What are cash equivalents defined as?
• Which of the following is NOT included in Other Comprehensive Income (OCI)?
• What are the classifications of the statement of cash flows (SOCF) for non-profit organizations?
• What is the primary purpose of an enterprise fund?
• What distinguishes a multiple-step income statement from a single-step income statement?
• Which of the following best describes fair value?
• When are losses recognized for long-term construction-type contracts under U.S. GAAP?
• Which item is included in the definition of comprehensive income?
• What are the fundamental qualitative characteristics of useful financial information?
• What type of repairs does NOT increase the life or utility of an asset?
• When substantial doubt is alleviated, which disclosure is NOT required?
• What does the term "net position" refer to in the context of fiduciary funds?
• How are gains and losses on the disposal of assets typically reported?
• What distinguishes fiduciary funds from other fund types?
• What defines the primary function of a lease?
• Under what condition are donated services recognized on the financial statements of NFP organizations?
• How long can the life of a special revenue fund be?
• Who is the primary beneficiary of a VIE?
• What are the entries made when goods are received and the purchase was previously recorded as an encumbrance?
• What does a custodial fund primarily do?
• How are notes payable recorded in the financial statements?
• What types of disclosures are required for reportable operating segments?
• How are liquidating dividends from equity securities reported by the investor receiving them?
• What are costs associated with terminating contracts that are not capital leases considered?
• What is the primary authoritative source for GAAP for non-profit (NFP) organizations?
• What is the effect of declaring a cash dividend on the date of declaration?
• Which types of accountability do the government-wide financial statements and fund financial statements represent?
• How are premiums or discounts from notes payable recorded in financial statements?
• What factors determine if a lease includes extension options in the lease term?
• Which journal entry does a lessee make to recognize leases other than short-term leases?
• What type of items require restatement to constant dollars due to price fluctuation?
• What must be used when reconciling net income to net cash provided by operating activities in a consolidated statement of cash flows?
• In reporting discontinued operations, what is considered a "group of components"?
• What is the transaction price in the context of recognizing revenue?
• According to the 10 percent test, what is required for reported profit or loss to qualify as a reportable segment?
• What costs should be expensed when developing internal-use software under U.S. GAAP?
• What distinguishes the Form 10-K from the Form 10-Q?
• In what manner are liquidating dividends treated by an investor?
• What distinguishes Projected Benefit Obligation (PBO) from Accumulated Benefit Obligation (ABO)?
• What are the fund accounting principles applicable to governmental funds?
• What conditions must exist for a disposal to be reported as discontinued operations?
• What is the definition of a "nonprofit activity" under reporting standards?
• How should gains and losses be recognized on an exchange of similar assets under IFRS?
• When a lease qualifies as an operating lease, what are the journal entries recorded by a lessor?
• What is included in the acquisition consolidating workpaper elimination entry?
• According to the bonus method, how should excess contributions be allocated?
• Which method estimates uncollectible accounts by using the total accounts receivable at the end of the period?
• What is the gross method of recording accounts payable?
• What does the cost approach in fair value measurement focus on?
• What are the two primary types of government accountability?
• Which of the following classifications are included for debt service funds?
• Which of the following is a type of proprietary fund?
• How is a change in an accounting estimate reported?
• Under GAAP, what is an entity's functional currency?
• What should accumulated postretirement benefit obligation reconciliations include?
• What is a common disclosure requirement for comprehensive income?
• How is the year-end "investment in investee" calculated under the equity method?
• What is the formula for the current ratio?
• The cumulative translation adjustment related to foreign currency hedges is included in which component?
• What does the partial goodwill method represent under IFRS?
• Which fund is used to account for government assets allocated for specific public benefits?
• Which tax rate is used for measuring deferred tax assets and liabilities under US GAAP?
• What is the main purpose of a permanent fund?
• What types of interfund transactions exist within governmental accounting?
• Which of the following rights is NOT a basic property of common stock?
• Which of the following best describes verifiability in financial information?
• What is the first step in the recording process for operating transactions in foreign currency?
• Under US GAAP, what additional item must be included when using the direct method for cash flow statements?
• How should service costs be reported in financial statements?
• What is the test of recoverability for finite life intangible assets under U.S. GAAP?
• What are typical revenue sources for enterprise funds?
• Which fund type is primarily used to account for social services provided by a nonprofit entity?
• What is the purpose of a valuation allowance when related to deferred tax assets?
• What defines a variable interest entity (VIE)?
• What is the accounting treatment for small stock dividends according to GAAP?
• Which method does IFRS permit for calculating noncontrolling interest?
• How does an impairment loss on equity securities get recognized?
• What does the PCC aim to establish for private companies?
• Is restoration of impairment losses permitted under US GAAP for assets held for use?
• When are unconditional promises (pledges) recognized as revenue for NFP organizations?
• What characterizes the amortization of prior service costs in pension accounting?
• Which characteristic defines administrative involvement in government operations?
• What is the primary purpose of the general fund in a governmental unit?
• What is the impairment test for recoverability under U.S. GAAP?
• When is a liability considered extinguished?
• How are deferred tax assets and liabilities classified on the balance sheet under US GAAP?
• Which of the following is an enhancing qualitative characteristic of financial information?
• What accounting principles should be used for interim reporting?
• What basis of accounting applies to proprietary funds?
• Which of the following is NOT one of the five elements of present value measurement per SFAC #7?
• What is included in a full set of financial statements?
• In a sale-leaseback transaction, who becomes the lessee?
• Which of the following is a commonly recognized functional classification of expenses in non-profit organizations?
• What is required to estimate postemployment compensation under accounting standards?
• Which financial statements are primarily prepared for nongovernmental NFP entities?
• Which method so-called service-based profits might differ in financial versus tax reporting?
• What is essential for the reporting of infrastructure assets in governmental financial statements?
• Under IFRS, how is an overfunded status reported?
• Under what conditions does substantial doubt exist concerning an entity's ability to continue as a going concern?
• Which statement is TRUE regarding the comparison of cash receipts and disbursements in CFs from operating activities?
• For estimating uncollectible accounts, what does the aging method focus on?
• What constitutes an entity being considered a going concern?
• What are the two activities associated with foreign currency?
• What are the three types of accounting changes?
• How are exceptions to the general reporting rule handled?
• What principle does the allowance method of accounting for bad debts rely on?
• Why are estimated liabilities recorded in the same period as revenue?
• What is one of the three accounting themes addressed by governmental accounting?
• What is the formula for calculating depreciation using the straight-line method?
• How is noncontrolling interest as of the acquisition date calculated under US GAAP?
• What is treated as the cost of improvements to land?
• What happens to the unrealized holding gain or loss for trading securities?
• What disclosure is required if substantial doubt is not alleviated regarding going concern?
• When must a credit loss be recognized for AFS or HTM debt securities?
• What is a board-designated endowment fund?
• How is the realized gain or loss calculated for trading debt securities when sold?
• What is a characteristic of a blended component unit?
• What is the primary purpose of the introductory section of the CAFR?
• How is the journal entry for leases other than short-term leases and contracts that transfer ownership recorded in a governmental fund?
• How are changes in funded status due to pension gains and losses reported under US GAAP?
• What basis is used to record patient service revenue in healthcare organizations?
• What is the income approach to fair value measurement primarily concerned with?
• When are assets received recognized as revenue by the recipient organization?
• What type of expenses are recognized in exit and disposal activities?
• How is the ending fair value of plan assets calculated?
• How is compensation expense allocated in compensatory stock option plans?
• Which of the following describes compensatory stock options under US GAAP?
• Assets and liabilities that are fixed in amount by contract are classified as what type of items?
• Under the private company alternative method of goodwill accounting in U.S. GAAP, how is goodwill amortized?
• What is the treatment of land purchase price in calculating depletion for natural resources?
• Which type of hedge is used to mitigate risks associated with cash flows?
• Which of the following types of revenue is specifically noted as 'other' operating revenue for health care entities?
• In a foreign currency hedge, what is the accounting treatment for the gains or losses from the fair value hedge?
• How are intercompany depreciable assets treated in elimination entries?
• How are unrecognized gains and losses amortized to net periodic pension cost under US GAAP?
• Which of the following represents a special exception for reporting changes in an accounting principle?
• How do you treat intercompany bond transactions in workpaper elimination entries?
• What type of exchange rate is applied to nonmonetary components in the balance sheet?
• Which classification of fund balances indicates resources not available for spending?
• How should an underfunded defined benefit pension plan be reported under US GAAP?
• What balance must be achieved in a withdrawing partner's capital account using the goodwill method?
• Which of the following is NOT a rule for recording adjusting journal entries?
• What kind of financing typically supports debt service funds?
• Which of the following is an example of a permanent difference?
• How are unrealized gains and losses on available-for-sale securities recognized?
• What are common revenue sources for a university that do not have donor restrictions?
• What is the basic formula for calculating earnings per share (EPS)?
• What initial direct costs should be included in the valuation of the right-of-use (ROU) asset?
• Which of the following is NOT a common class of cash receipts and disbursements from operating activities using the direct method?
• How are unconditional promises to contribute in the future accounted for in NFPs?
• What type of hedge designation is characterized by gains or losses being included in current earnings?
• What are the three elements of faithful representation?
• Is depreciation expense recorded in the financial statements of a nonprofit organization?
• Which of the following indicates a consignment arrangement?
• What type of dividend is a promise to pay a dividend in the future?
• Which type of subsequent event does NOT provide information about conditions existing at the balance sheet date?
• What financial statements are required for individual proprietary fund types?
• In the context of consolidation, what is referred to as 'non-controlling interest'?
• Which of the following describes the accounting treatment for start-up costs?
• How many segments is generally considered the practical limit for reporting?
• Which of the following accurately describes the starting point for the statement of cash flows?
• What is involved in computing the bond selling price?
• What are the components of net periodic postretirement benefit cost under US GAAP?
• How does the fair value option for financial instruments under US GAAP affect earnings?
• How is the loss incurred due to modification of terms of an impaired loan reported by the creditor?
• What cash flows are categorized as financing activities?
• What is the criterion for assets to constitute a reportable segment?
• What typically happens if payment is made after the discount period under the net method?
• How is the goodwill recognized in the partnership upon withdrawal of a partner?
• Which is NOT one of the types of restructurings involving debt?
• How are stock-related costs treated under the acquisition method?
• What does the lessee record for subsequent entries in a finance lease?
• When using the net method for accounts payable, what is recorded?
• What does the company remain when utilizing in-substance defeasance?
• Under IFRS, how are research and development costs treated?
• What is NOT a situation that requires adjusting journal entries?
• What basis is used to assess whether a lease is an operating lease for the lessor?
• Which of the following methods of revenue recognition is recognized under both U.S. GAAP and IFRS for long-term construction-type contracts?
• What basis of accounting do non-profit (NFP) organizations use?
• When is a bond issued at a discount?
• Under IFRS, when is a deferred tax asset recognized?
• What is the final step on the payment date for foreign currency operating transactions?
• What is a sale-leaseback transaction?
• What journal entry does a lessor record when recognizing a lease contract that transfers ownership?
• Which three elements are required in the statement of activities for non-profit organizations (NFP)?
• Which of the following reflects a criterion for recognizing donated services?
• What type of expense is associated with fundraising in NFP organizations?
• Which principle is NOT applicable to governmental funds?
• Which method of amortization for bond premium is permitted under US GAAP?
• When should costs for developing computer software for resale be capitalized under U.S. GAAP?
• What is the pension plan liability named under IFRS?
• Which type of dividend results in an increase in the legal capital of a company?
• What is the role of unassigned fund balance in governmental accounting?
• How is control defined in the context of revenue recognition?
• The journal entry for recognizing a capital asset acquisition should reflect which key account?
• When is a warranty considered a separate performance obligation?
• What do encumbrances track in governmental accounting?
• What is NOT a characteristic of an operating segment?
• In which financial statements are infrastructure assets reported?
• What is recognized if the fair value of an asset is less than its carrying value under U.S. GAAP for indefinite life intangible assets?
• What is one of the rules concerning capitalizing interest?
• What role does non-controlling interest play in a consolidated financial statement?
• What is the journal entry to recognize supplies remaining at year-end using the purchase method?
• Which adjustment corresponds to changes in non-cash current assets using the indirect method?
• What is the authoritative source for nongovernmental U.S. GAAP?
• Which assets are subject to an impairment test?
• When does a non-profit organization recognize conditional promises as revenue?
• When are losses on available-for-sale securities recognized in income?
• Which term reflects a modification of bond terms in a restructuring?
• What type of accountability involves the use of fund financial statements?
• How are translation adjustments classified in the financial statements?
• What must be true for unrealized losses on AFS securities to be recognized in income?
• What is the accounting treatment for indirect costs in an acquisition?
• What is the antidilution rule in relation to EPS calculations?
• What is used to calculate the realized gain or loss for equity securities upon sale?
• Which components are included in the statement of revenues, expenses, and changes in net position for proprietary funds?
• How are debt securities classified as trading or available-for-sale valued on the balance sheet?
• Which tax rate should be used in interim financial reporting?
• How should capitalized costs of computer software developed for resale be amortized under U.S. GAAP?
• How is a credit loss capped for an AFS security?
• What kind of fund would be used for activities financed through user charges?
• What is the treatment of costs incurred in obtaining a contract if they are not expected to be recovered?
• What must be met to avoid recording the donation of works of art or historical treasures?
• What are typical components of revenue classifications for capital project funds?
• What must management evaluate regarding a company's ability to continue as a going concern?
• What should be the accounting treatment for an impairment loss on assets held for sale?
• Which of the following is NOT a component of Other Comprehensive Income (OCI)?
• Which method is used to restate financial statements before translating from functional currency to reporting currency?
• What is the basis for transferring a marketable debt security from trading to AFS?
• Which statement regarding the treatment of stock options under IFRS is correct?
• What subsequent entries does the lessee record if the lease qualifies as an operating lease?
• How are debt securities classified as held to maturity valued on the balance sheet?
• Under the cost recovery method, when are profits recognized?
• What is the primary accounting method for treasury stock that recognizes the original purchase cost?
• What is the basic structure of the statement of cash flows for proprietary funds?
• What are the two main types of foreign currency transactions?
• What are the ten elements of financial statements according to SFAC #6?
• What would indicate that a lessor should treat a lease as an operating lease?
• What condition must be met for the reporting currency to be the functional currency during remeasurement?
• What defines a "component" of an entity for reporting under U.S. GAAP and IFRS?
• Name the type of fund established for long-term capital projects.
• What is the basic equation represented in the balance sheet for governmental funds?
• What is the journal entry a lessee uses to recognize a lease contract that transfers ownership in a proprietary fund?
• How should depletion on natural resources be computed according to U.S. GAAP?
• What is the accounting treatment for large stock dividends?
• What is NOT a criterion for recognizing revenue on a contract?
• Which of the following defines permanent differences?
• Under what condition are dividends classified as 'liquidating'?
• Which of the following is a U.S. GAAP disclosure requirement for risks and uncertainties?
• Under U.S. GAAP, when is an asset exchange considered to have commercial substance?
• What is a criterion for recognizing postemployment benefits?
• Which criteria indicate that an organization is a component unit?
• What criteria must be met for cash contributions to be recognized as revenue in NFP accounting?
• What exchange rate is used for monetary components when remeasuring the balance sheet?
• Which financial statement provides information about the changes in net assets available for benefits?
• When are unrealized gains and losses for AFS securities reversed?
• Which of the following is NOT an element of relevance?
• In the cost method of accounting for treasury stock, how are gains and losses treated?
• What does IFRS state regarding the classification of assets or liabilities for overfunded plans?
• What does the expected cash flow approach focus on for present value computations?
• What is the formula for recognizing gain/loss on long-term construction-type contracts under the percentage-of-completion method?
• What does the statement of changes in fiduciary net position typically include?
• According to financial standards, how should an impairment loss be reflected in reports?
• How are marketable securities typically reported in healthcare financial statements?
• In the consumption method, what entry might not be needed when supplies are debited to inventory?
• What is a key difference between an ordinary annuity and an annuity due?
• If a lease is classified as a finance lease, what will be the lessee’s accounting treatment?
• Which of the following is NOT a type of lease agreement identified for accounting treatment in governmental accounting?
• Which of the following will be included in the lease payments from the lessee's perspective?
• What is the primary purpose of recognizing the supplies remaining at year-end under the consumption method?
• How is the subsequent increase in the fair value of a discontinued component accounted for?
• Which component is NOT a required disclosure for defined benefit plans?
• What is the purpose of the five-step approach to revenue recognition?
• What do investment trust funds account for?
• Which of the following represents a consideration when preparing consolidated statements of cash flows?
• What is one of the key responsibilities of management regarding financial statements?
• What assets, liabilities, and equity does the consolidated balance sheet include when a parent company does not own 100% of a subsidiary?
• On which date do dividends actually get paid to shareholders?
• When are financial statement disclosures required for reasonably possible contingent losses?
• How should costs incurred in obtaining a contract be treated?
• How is the effective portion of a cash flow hedge accounted for?
• Which type of funding is NOT applicable for capital projects funds?
• What is the purpose of the 75% test for identifying reportable segments?
• What distinguishes enterprise fund activities from other governmental fund activities?
• How is working capital defined?
• When are losses on firm purchase commitments recognized?
• Which section of the CAFR contains the letter of transmittal?
• In the case of a finance lease, how does the lessee initially record the lease transaction?
• What is the journal entry to record the earnings of deferred revenue?
• Which of the following is NOT considered a research and development cost?
• What is the main criterion for consolidating subsidiaries?
• What are the elements of closing entries for budget, activity, and encumbrances?
• What sort of uses does a general fund primarily account for?
• What is one possible outcome of management's evaluation when no substantial doubt exists about the entity's ability to continue as a going concern?
• When recognizing goodwill impairment, what is the maximum impairment charge allowed?
• In a business combination, what happens when the acquisition cost is less than the fair value of net assets acquired?
• What is the effect of temporary differences on future financial income?
• What is a reclassification of net assets in a non-profit context?
• Which statement is required under US GAAP for a defined benefit plan?
• What financial statements are required for individual governmental fund types?
• What is the criterion for determining impairment under US GAAP?
• Under what condition does a lessee depreciate the leased asset in a finance lease?
• What is true about remote contingent liabilities?
• What is included in the formula to calculate the ending Projected Benefit Obligation (PBO)?
• What does the "E" in the SELF mnemonic stand for?
• What are the two methods of determining goodwill under the IFRS acquisition method?
• Which rate is typically used by the lessee to calculate the present value of minimum lease payments?
• What does goodwill typically arise from in an acquisition?
• What is the workpaper elimination entry for intercompany inventory transactions?
• Where are the EPS amounts required to be reported?
• Which of the following represents the three ranges of likelihood for confirming a contingent liability?
• Which of the following must be disclosed under U.S. GAAP when discussing significant estimates?
• Extraordinary repairs are treated how in accounting?
• How does revenue recognition differ when performance is satisfied over time versus at a point in time?
• What does CAFR stand for in governmental accounting?
• How is the impairment loss reported in the financial statements?
• What is crucial for management to ascertain when considering implementation of plans to alleviate substantial doubt?
• How is noncontrolling interest on the income statement calculated?
• What characterizes an underwater endowment fund?
• What is a primary responsibility of governments regarding fiduciary funds?
• What happens to the balance in "APIC-Stock options" when stock options expire unexercised?
• Which method is required by GAAP for accounting for uncollectible accounts?
• When is a bond issued at a premium?
• Which fund is designed to support activities outside debt service and capital projects?
• Which type of expense does the unexpired cost of insurance convert into as it expires?
• Under IFRS, how is impairment of intangible assets assessed?
• Which type of costs must be capitalized when developing computer software for internal use?
• When are assets transferred without variance power recognized as liabilities by the recipient organization?
• Under what condition is a loan considered impaired?
• What is the purpose of eliminating intercompany payables and receivables when preparing consolidated financial statements?
• Which criterion would lead to a lease being classified as a finance lease for the lessee?
• What classification of fund balances includes resources constitutionally limited as to use?
• What typically influences the fair value of identifiable intangible assets at acquisition?
• What happens on the date of record regarding cash dividends?
• Which approach uses market transactions to measure fair value?