Acronyms to remember

Question 1

Items in Comprehensive Income

PUFI

Net Income + OCI (i.e. PUFI) = CI

Answer 1

Pension Adjustment
Unrealized Gain and Losses on AFS Debt Securities and Hedges
Foreign Currency Items
Instrument-Specifc Credit Risk

Question 2

Five Step Approach for Revenue Recognition

I am a STAR

Answer 2

1. Identify the contract with the customer
2. Separate perfomance obligations
3. Transaction price determination
4. Allocate the transaction price to each Performance Obligation
5. Recognize Revenue

Question 3

Simple Bank Reconcilation

“DO” Bank Reconciliation

Answer 3

(Add) Deposits in Transit
(Subtract) Outstanding Checks

Question 4

Simple Bank Reconcilation

Book Reconciliation in “BINS”

Answer 4

(Add) Bank Collections
(Add) Interest Expense
(Subtract) NSF
(Subtract) Service Charges

Question 5

PP&E Equipment Capitalization

AIR

AIR is extraordinary so capatalize it (i.e. profit from it)

Answer 5

Addition
Improvement
Replacement

Question 6

Employee Related Liabilities

SOCR

If only the first 3 Conditions (SOC) are met, diclosure in a note to financial statements is adequate

Answer 6

Services - have already been rendered (i.e. earned) by employees
Obligations - related to rights that vest (i.e. accumulate)
Compensation - payment of compensation is probable (i.e. it will still happen in future)
Reasonably - the amount can be reasonably estimated

Question 7

Finance Lease Criteria

OWNES

Answer 7

Ownership
Written Option to purchase
NPV exceeds 90% of FV
Economic Life represents remaining 75%
Specialized asset

Question 8

Lease Payments Includes

REPORT N GO

Lease Payments include REPORT
Lease Payments may or may not include N
Lease Payments may not include GO

Answer 8

Required contractual fixed payments
Exercise option is reasonably assured
Purchase Price at end of lease
Only indexed or rate variable payments
Residual guarantees likely to be owned
Termination penalties reasonably assured
Non- lease Components
Guarantees of lessor debt
Other variable lease payments

Question 9

Loss Contingencies

DOG Guarantee

Do not disclose or accrue remote loss contigiences unless it is a “DOG Guarantee”

Answer 9

Debt of Other Guaranteed
Obligations of Commercial Banks
Guarantees of Repurchase A/R Sold

Question 10

Consolidation Adjustments

CAR IN BIG

The CAR I’m in is BIG

Answer 10

Common Stock in sub are eliminated
APIC in sub are eliminated
Retained Earnings in sub are eliminated
Investment in sub is eliminated
Non Controlling interest is created
Balance Sheet of sub is adjusted to FV
Identifiable Intangibles are recorded at FV
Goodwill is required as a plug/gain if not there

Question 11

Intraperiod Tax Allocation

IDA

Answer 11

Income from Continuing Operations
Discontinued Operations
Accounting Principle Change (Retrospective)

Question 12

Donated Services

SOME

Answer 12

Specialized skills are required
Otherwise needed by the organization
Measurable
Easily at Fair Value

Question 13

Statement of Cash Flow Adjustments (indirect method)

CLAD

Answer 13

Current assets and liabilities
Losses and Gains
Amortization and depreciation
Deferred Items

Question 14

Characteristics in Financial Reporting for Gov’t

U R MICE

Answer 14

Understandability
Reliability
Make a Difference (Relevance)
In Timeliness
Consistency year over year
Entity-to-entity comparability

Question 15

Governmental Fund Structure and Fund Accounting

SE-CIPPOE

Answer 15

Service (Internal)
Enterprise
Custodial
Investment Trust
Private Purpose Trust
Pension (and other Employee benefit) trust

Question 16

Governmental Funds

MAC-GRasPP

Answer 16

Modified
Accrual
Current financial resources measusrement focus
GRAsPP

Question 17

Proprietory and Fiduciary Funds

SCARE

Answer 17

SE
CIPPOE
Accrual Accounting
Record non-current assets and liabilities
Economic resources and measurement focus

Question 19

DEALER

Answer 19

Dividends (Debit Balance)
Expenses (Debit Balance)
Assets (Debit Balance)
Liabilities (Credit Balance)
Equity (Credit Balance)
Revenue (Credit Balance)