1.

Which of the following should be disclosed in a Sum- Depreciation

mary of Significant Accounting Policies? method followed

2. An example of an inventory accounting policy that method used for

should be disclosed in a Summary of Significant Ac- pricing inventory
counting Policies is the

3. The full disclosure principle, as adopted by the ac- Disclosure of any

counting profession, is best described by which of the financial facts sig-
following nificant enough
to influence the
judgement of an
informed reader

4. The focus of APB Opinion No. 22 is on the disclosure whether account-

of accounting policies. This information is important ing policies are
to financial statement readers in determining consistently ap-
plied from year to
year

5. If a business entity entered into certain related party nature of any fu-
transactions, it would be required to disclose all of the ture transactions
following information except the planned between
the parties and the
terms involved.

6. Events that occur after December 31, 2015 balance used to record
sheet date (but before the balance sheet is issued) and an adjustment to
provide addition evidence about conditions that exist- Bad Debt Expense
ed at the balance sheet date and affect the realizability for the year end-
of accounts receivable should be ing December 31,
2015

7. Which of the following post-balance-sheet events Issue of a large

would generally require disclosure, but no adjustment amount of capital
of the financial statements? stock

8. Which of the following subsequent events (post-bal- loss an a law-

ance-sheet events) would require adjustment of the suit, the outcome
of which was
 accounts before issuance of the financial state- deemed uncertain
ments? at year end

9. Revenue of a segment includes sales to unaf-

filiated customers
and inter-segment
sales

10. An operating segment is a reportable segment if none of these an-

swers are correct

11. A segment of a business enterprise is to be reported total revenues of

separately when the revenues of the segment exceed all the enterprise's
10 percent of the industry segments

12. All of the following information about each operating Cost of goods sold
segment must be reported except

13. The profession requires dis-aggregated information All of these an-

in the following ways swers are correct

14. APB Opinion No. 28 indicates that The same ac-

counting princi-
pals used for
the annual report
should be em-
ployed for interim
reports

15. Rondelli Manufacturing Company employs a standard be deferred at the

cost system. A planned volume variance in the first end of the first
quarter of 2015, which is expected to be absorbed by quarter, regard-
the end of the fiscal year, ordinarily should less of whether it
is favorable or un-
favorable

16. In considering interim financial reporting, how does As reporting for an

the profession conclude that such reporting should integral part of an
be viewed? annual period