YOU SCORED
{{Score}}/10

The CFA Program represents the industry gold-standard for effective and ethical investment management practices. Click here to learn more about the CFA Program.

Question 1
Sorry, that's incorrect.
The Correct Answer is Operating expenses.
Restructuring charges for a plant closing are most appropriately classified as:
Question 2
Sorry, that's incorrect.
The Correct Answer is FIFO.
Which of the following inventory valuation methods is most appropriate to account for interchangeable items segregated by purchase cost?
Question 3
Sorry, that's incorrect.
The Correct Answer is U.S. GAAP and is reported on an after-tax basis.
The classification of an item as “extraordinary” on a company's income statement is permitted under:
Question 4
Sorry, that's incorrect.
The Correct Answer is Unearned revenue.
Total assets most likely increase with an increase in:
Question 5
Sorry, that's incorrect.
The Correct Answer is Costs incurred developing intangible assets.

Which of the following most likely decreases cash flow from operating activities?

Question 6
Sorry, that's incorrect.
The Correct Answer is Noncurrent deferred tax liability.

If the carrying amount of accounts receivable exceeds its tax base and the difference will reverse in the future, the company most likely reports a:

Question 7
Sorry, that's incorrect.
The Correct Answer is Both the balance sheet and the income statement.

Contra accounts offset accounts on:

Question 8
Sorry, that's incorrect.
The Correct Answer is Immediately.

A company uses the percentage-of-completion method to account for a 4-year construction contract. In Year 2, the company expects an overall loss on the contract. The company should recognize the expected loss:

Question 9
Sorry, that's incorrect.
The Correct Answer is Both the notes to the financial statements and management's discussion and analysis.

The disclosure of accounting policies that require significant judgments and estimates is most likely found in:

Question 10
Sorry, that's incorrect.
The Correct Answer is Applied retrospectively.

Changes in accounting principles are most likely: