1.01 BS/Statement of Financial Position

Question 1

Stockholders’ Equity

Contributed (paid in) capital:

1. Preferred stockholders
2. Common stock
3. APICK
4. Noncontroling interest in consolidated subsidiaries
5. Retained earnings
6. Accumulated other comprehensive income (loss)
7. Less: Treasury stock (cost method)
   Total Shareholders’ Equity

Accumulated Other Comprehensive Invome:
Derivative cash flow hedges
*Excess adjustment for pension PBO and FV of plan assets
* Net unrealized holding gain or loss on AFS debt securities
* TRANSLATION adjustments for foreign currency
PBO projected benefit obligations

Question 2

Generally accepted accounting principles
- general purpose accounting framework
- encompasses rules, conventions and procedures
- defines accounting practices at a specific time
- maintained and updated br FASB

Question 3

When a corporation issues common or preferred stock, it records the stock at its par or “stated” value.

Question 4

When you get a question asking for total asset and it is mention the liabilities had increased. And there is also mention about equity. You approached it by listing in a form of:
A = L + E

Question 5

Deferred liability are ALWAYS classified as long term.

Question 6

Cash surrender value of life insurance policies, the portion of the insurance premiums that is this invested for the company’s benefit is a Current Asset.