74% Flashcards
when should a component unit be presented discretely?
when it’s an separately elected legal entity that’s financially independent
which of the items will impact earnings per share?
anything that impacts net income
what is not an exit or disposal cost?
cost to relocate employees
given:
quoted market price
transaction costs
net quoted market price
what is the fair value of a stock?
quoted market price
contributed works of art or historical treasures do not need to be recorded if:
not for investment or financial gain
preserved by organization
proceeds are reinvested or used to support care of current collections
when there’s a stock dividend, what should you think?
is it a small or large stock dividend?
are interim reports audited?
no
what are program services?
activities which the organization has chartered
what are support services?
fundraising
administration
membership development
how do you find NCI?
beg NCI = FV of subsidiary * NCI %
+ NCI % of net income
- NCI % of dividends
end NCI
Potter is hosting a fundraising event, which is part of their mission. in exchange for a $550 donation, donors receive a $50 flower vase. Potter will recognize contribution of :
$550 contribution revenue
$50 fundraising expense
what are the valuation techniques when measuring the fair value of an asset or liability?
income (future cash flows)
cost (replacement cost)
market (market value)
what is the journal entry for a DTA valuation allowance?
current tax expense
(DTA valuation allowance)
when accounting for a gain or loss from discontinued operations, what is the last step before recording the amount?
take out tax
add or subtract fixed assets when reconciling a fund balance?
add
add or subtract debt proceeds when reconciling a fund balance?
subtract
how are patents amortized?
lesser of legal life v economic life
what should you think when you see a subsequent event question?
did it exist at balance sheet date?
yes-accrue and disclose
no-disclose
what is the current maturity for 12/31/Year 2 lease?
12/31/Year 3 principal portion
recipient journal entry when they have
variance power
no variance power
asset
(contribution revenue)
asset
(refundable advance)
beneficiary journal entry when they’re
not financially interrelated
financially interrelated
beneficial interest
(contribution revenue)
interest in recipient’s net assets
(change in interest in recipient’s net assets)
how is interest received recorded in a non-interest bearing note receivable?
note receivable
interest income
in an enterpise fund, transfers made to other funds is classified as
non-capital financing activities
in an enterprise fund, interest and dividends received are classified under
investing activities
for an NFP, restricted promises are classified as
financing activities
