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Question 1

in regards to diluted EPS, what does the application of the TS method do?

Answer 1

the proceeds from exercise are used to purch. CS at avg. MP

Question 2

is PV FCF used as a measure for inventory?

Answer 2

no

Question 3

are insurance recoveries normally reported in CFI?

Answer 3

yes

Question 4

regarding stock based comp, the req’d total amt of comp. cost recog’d in emp. comp. award is based on the total # of instruments that:

Answer 4

eventually vest

Question 5

what disclosures should be in prospective FS’s?

Answer 5

summary of sig. AP + sig. assumpt’s

Question 6

articulation means that FS’s are:

Answer 6

interrelated

Question 7

what is reported when land is donated?

Answer 7

APIC is recorded

Question 8

how are div’s per share for CS used in calculation?

Answer 8

div. per share payout ratio is numerator over # of shares

Question 9

does IFRS require more footnotes than GAAP?

Answer 9

yes

Question 10

what is form 11k?

Answer 10

annual filing of emp’s ben. plan

Question 11

does CI include investment by owners?

Answer 11

no - it includes all changes in equity during a period except resulting from invest’s by owners and distr’s to owners
(non-owner changes)

Question 12

when should installment sales method be used?

Answer 12

when installment sales are material and there is no reas. basis for estimating collectibility

Question 13

as a result of convergence, is SFAC 8 rep’ing the same obj. for FR’ing purp’s?

Answer 13

yes

Question 14

how is consol’d selling exp calc’d?

Answer 14

P + S - I/C exp (freight cost)

Question 15

do we debit unam’d premiums and credit unam’d discounts for retirement of bonds?

Answer 15

yes

Question 16

what is the reporting requirement for concentrations of market and credit risk?

Answer 16

• credit = disclose when a party fails to perform

* mkt risk = encouraged, but not req’d

Question 17

what is the intent of adopting a balanced budget?

Answer 17

to achieve interperiod equity

transfers out = transfers in does not rep. it

Question 18

in regards to noncompliance w/ donor restrictions, what are the req’d disclosures?

Answer 18

• noncompliance w/ donor restrictions if there is a reas. poss. that a material cont. L has been incurred OR
  that the noncompliance could lead to a material loss of rev
• it could cause the inability to continue as a GC

Question 19

how is consol’d SE calc’d?

Answer 19

P + NCI

NCI = (NCI%*sub SE)

Question 20

what is the JE for a large stock div?

affects RE+CS

Answer 20

Dr: RE (par)
Cr: CS