10 Flashcards
Cash from investing activity includes:
Cash received from sale of investment and cash paid to purchase common stock.
How should interest / Dividends be managed in the CF statement under IFRS?:
paid: reported in either operating of financing CF.
received: reported in operating of investing CF
How should interest be managed in the CF statement under US GAAP?:
interest paid must be reported in the operating section.
Interest received: reported in operating of CF
For local gov, gov wide statements of activities should report the following:
“SOC”
charges for SERVICES
OPERATING grants and contributions
CAPITAL grants and contributions
How should the donations of medicines be recorded in a hospitals FS?:
They should be recorded as other operating revenue.
Tuition Revenue is reported gross and includes scholarships, tuition remissions,etc… How does refund tuition affect revenue:
It decreases revenue.
Donated services should be recognized as revenue if they meet the following criteria:
"SOME" SPECIALIZED OTHERWISE needed MEASURED EASILY
How to record the purchase of treasury stock in the CF statement?:
Recorded in the financing section.
How to record the proceeds from sales of available-for-sale securities in the CF statement?:
Recorded in the Investing section. Generally, cash receipts from purchases and sales of long term assets are included in the investing section.
How to record the dividends received from investments in the CF statement?:
Operating section. Operating CF’s include amounts received or paid in cash for income statement items.
Operating CF ratio formula:
Operating CF’s “/” Ending Current Liabilities
How to record incremental costs of incurred that would not have been incurred if a contract would not have been obtained:
These incremental costs are capitalized and are amortized if the entity expects to recover these costs. An entity will recognize an expense if the costs would have been incurred regardless of entering into the contract.
When does a seller book a transaction as a financing arrangement?:
When the repurchase price is equal to or greater than the original sale price and the expected market value.
How should deferred tax assets and liabilities that are temporary in nature be presented in teh BS?:
They should be presented as non current.
At what value should marketable debt securities which a company has a positive intent to hold to maturity be reported?:
Long term marketable debt securities and Short term marketable debt securities should be held at carrying value.
