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| Section | Weight | Objectives |
|---|---|---|
| Select Financial Statement Accounts | 30-40% | - Expenses and Other Items - Liabilities - Equity - Revenue Recognition - Assets |
| Select Transactions | 25-35% | - Derivatives and Hedge Accounting - Business Combinations and Consolidations - Fair Value Measurements - Subsequent Events and Fair Value Disclosures - Leases |
| Financial Reporting | 30-40% | - General Purpose Financial Statements - Conceptual Framework and Standard-Setting - Special Purpose Frameworks - Financial Reporting for Nonprofits - State and Local Government Reporting |
Which of the following should be disclosed in a summary of significant accounting policies?
I. Management's intention to maintain or vary the dividend payout ratio.
II. Criteria for determining which investments are treated as cash equivalents.
III. Composition of the sales order backlog by segment.
Correct Answer: B 🗳️
In financial reporting of segment data, which of the following items is always used in determining a segment's operating income?
Correct Answer: A 🗳️
According to the FASB conceptual framework, comprehensive income includes which of the following?
Correct Answer: A 🗳️
On December 2, 20X1, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell the division's assets on the open market as soon as possible. The division reported net operating losses of $20,000 in December and $30,000 in January. On February 26, 20X2, sale of the division's assets resulted in a gain of $90,000. Assuming that the frozen foods division qualifies as a component of the business and ignoring income taxes, what amount of gain/loss from discontinued operations should Flint recognize in its income statement for 20X2?
Correct Answer: B 🗳️
Coffey Corp.'s trial balance of Income Statement Accounts for the year ended December 31, 1988 as follows:
Coffey's income tax rate is 30%. The gain on debt extinguishment is considered a usual and recurring part of Coffey's operations. Coffey prepares a multiple-step income statement for 1988.
Income from operations before income tax is:
Correct Answer: B 🗳️
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