I like the questions!! @teetee–the way I remember to expense start up costs is to tell myself the reason they are expensed is for the tax deduction since they probably don't have revenues yet to offset the cost.
Hey Baje246. A lot of us have the exam either next week or the week after and we're still intimated, but not as much as in the beginning. You can do it!
During the current year, Ace Co. amortized a bond discount. Ace prepares its statement of cash flows using the indirect method. In which section of the statement should Ace report the amortization of the bond discount?
Yes, technically I should be on top of all topics but I still have more study days 🙂
Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!
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Operating–Any changes to net income in the indirect method are reflected in the operating section to go from accrual to cash basis. Just remember that amortization is a noncash expense and the ONLY difference between indirect and direct is in the operating section to add back noncash expenses to net income.
Ding ding ding. You are correct! I thought it was a trick question because it was from NFP and I answered incorrectly. I'm giving you guys all the MCQ I got wrong on my WTB exam I took last night.
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