79% Flashcards
equity method JE for sub’s income
inv in sub
(equity in earnings)
equity method JE for fair value premiums:
equity in earnings
(inv in sub)
JE for retirement of shares:
common stock
apic-common stock
(treasury stock)
(apic-treasury stock)
when reconciling govt-wide financial statements, principal payments on debt need to be
added back
expenditures - principal
cash
where is equity in earnings reported?
income statement
what impacts equity in earnings every year?
sub’s income, sub’s dividends, amortization of premium
how does a loss from discontinued operations impact net income?
decrease
how are all expenses in a not-for-profit classified?
without donor restrictions
on the statement of cash flows, interest payments on bonds is classified as
operating activities
when a 3 year purchase commitment is canceled after 1 year, how much of the loss is accounted for?
entire purchase commitment (not just for the current year)
what are items on the book that need to be applied to the bank balance?
+deposits in transit
- outstanding checks
what are items on the bank reconciliation that need to be applied to the book?
+bank collections
+ interest income
- service charges
- insufficient charges
where are hospitals reported on GWFS?
business-type activities, part of enterprise fund
when is revenue earned on gift cards?
when redeemed or expired/lapsed
are nonvoting shares relevant to determining majority voting interest?
no
how are discontinued operations that occur mid year usually reported?
included in NI and disclosed in interim reporting
what is the pro-rata basis in a short term loan with a maturity less than 12 months?
12 months
what is the pro-rata basis in a short term loan with a maturity less than 12 months?
12 months
what are the intercompany inventory elimination journal entries?
interco-sales
(interco-cogs)
(cogs - sub)
(ending inventory - sub)
what must be eliminated in intercompany inventory?
profit
sum of cogs-sub and ending inventory-sub
how is purchase of treasury stock classified on the statement of cash flows?
financing outflow
due to a decline in market price at the end of Q2, Apple incurred an inventory loss. market price is expected to return to previous levels by the end of the year, but did not. when should the inventory loss be recorded?
at the end of Q4
multiplier for:
50% stock dividend
3 for 1 stock split
1.5
3
when land is held for resale, what is it reclassified as?
current asset
how much cash is available if there is an overdraft of ($10,000) after writing a check for $50,000?
$40,000
