Acc306 Quiz

Acc306 Quiz

1. Question : The shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities?

Securities available for sale.

2. Question : If the fair value of equity securities is not determinable and the equity method is not appropriate, the securities should be reported at:

Cost.

3. Question : Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of:

Materiality.

4. Question : Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet?

  All of the above require the current classification.

5. Question : Which of the following may create employer liabilities in connection with their payrolls?

all the above are correction

6. Question : When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes:

A debit to a liability and a credit to a revenue account.

7. Question : Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?

Long-term debenture bonds

8. Question : When a gain contingency is probable and the amount of gain can be reasonably estimated, the gain should be:

Disclosed, but not recognized in the income statement.

9. Question : A contingent loss should be reported in a footnote to the financial statements rather than being accrued if:

The incurrence of a loss is reasonably possible.

10. Question : Which of the following investment securities held by Zoogle Inc. are not reported at fair value in its balance sheet?

Debt securities held to maturity