August 2024

For how long is demonstration equipment placed with a customer?

• For 3 months
• For a period not exceeding 3 months
• For a period not exceeding 5 months

What is the definition of discrepancy?

• The difference between the actual physical count of assets in a location and the balance held in the system for the location
• The difference between the actual count of assets in a location and the balance held in the system for the location
• None other answers

How can you calculate the ROU Lease Asset?

• Initial measurement of lease of liability - Prepaid and accrued lease payments - Lease incentives received
• Initial measurement of lease of liability +/- Prepaid and accrued lease payments - Lease incentives received
• Initial measurement of lease of liability + Prepaid and accrued lease payments - Lease incentives received

Errors in production reports must be:

• Identified timely
• Corrected at the source
• Both

What is the definition of blind count?

• A physical count of fixed assets without knowledge of the assets in the fixed asset system
• Counting the fixed assets without knowledge of the assets in the system
• None of the above

What is true about scrap?

• The supplying location takes the cost of the write off if the scrap is caused by the manufacturing process and the value of the scrap is greater than $40,000
• The receiving location takes the write off as an inventory adjustment if the value of scrap is less than $40,000
• None of the above

The example of purpose of Free Goods is:

• Satisfy customer obligations
• Internal use by 3M of office supplies
• Deal promotions

Free good provided to customer (not including cash), the cost of it should be classified as:

• Expense
• Reduction in revenue
• Both answers are incorrect

What does the term US FCPA stand for?

• US Foreign Corrupt Practices Act
• US Federal Corrupt Practices Act
• US Federal Corrupt Policy Agreement

How can you calculate an impairment?

• Step 1:Determine whether an impairment exists. This is when the sum of the undiscounted future cash flows (UFCF) over a certain time period is less than the net book value of the assets. Step 2: calculate the loss where impairment exists. This is where the net book value exceeds the fair market value of the assets. This is where the fair market value exceeds the net book value of the assets
• Step 1:Determine whether an impairment exists. This is when the sum of the undiscounted future cash flows (UFCF) over a certain time period is less than the net book value of the assets. Step 2: calculate the loss where impairment exists. This is where the net book value exceeds the fair market value of the assets
• None of the above