Day 18 - 67% FAIL / NFP Flashcards
Characteristics of financial reporting for Government
U R MICE
- UNDERSTANDABILITY
- RELIABILITY
- Make a difference - RELEVANCE
- In TIMELINESS
- CONSISTENCY
- Entity to entity - COMPARABILITY
MCQ-00888
When do you record a loss for a Purchase Agreement vs a Purchase Commitment?
Purchase Commitment - legally binding contact / record loss
Purchase Agreement - no loss is recorded bc the buyer is not obligated
MCQ-04485
Can you capitalize interest expense from internal equity?
No
MCQ-01866
ABC owns 75% of Volkswagen $50k of CS.
ABC has $100k of CS. What amount of CS is reported on the consolidated BS?
Rule: 100% of a purchased subsidiary’s Stockholders Equity (including CS) is eliminated as of the date of the acquisition
Report only ABC’s $100k
MCQ-00435
Unrealized holding gains and losses on Equity Securities are included in ______
Included in Earnings/Net Income as they occur
Equity Securities = recorded at FMV
MCQ-00518
Under the Cost Method (95% of the Time) how are Treasury Stocks recorded and carried
Recorded and Carried at their REACQUISITION COST
Gains/Losses are determined when REISSUED
Note: Gains on sale of TS are credited to APIC-Treasury Stock - IT DOES NOT AFFECT NET INCOME or RE
MCQ-00981
ABC purchased bonds on the open market as an investment and intends to hold until maturity. The bonds are recorded at their:
Amortized Cost and classified as Held-To-Maturity Securities
MCQ-00266
What is the only depreciation method that ignores Salvage Value?
Double Declining Balance
MCQ-00142
Using the Sum-Of-The-Years-Digits method, what is the first year fraction for a 4 year & 5 year asset?
4 Year Asset
1. 4/10 * (Cost - Salvage Value) = Depr Exp
2. 3/10 * (Cost - Salvage Value) = Depr Exp
3. 2/10 * (Cost - Salvage Value) = Depr Exp
4. 1/10 * (Cost - Salvage Value) = Depr Exp
(To find carrying value = use original cost)
5 Year Asset
1. 5/15 * (Cost - Salvage Value) = Depr Exp
2. 4/15 * (Cost - Salvage Value) = Depr Exp
3. 3/15 * (Cost - Salvage Value) = Depr Exp
4. 2/15 * (Cost - Salvage Value) = Depr Exp
5. 1/15 * (Cost - Salvage Value) = Depr Exp
MCQ-00142
Porter Co. began its business last year and issued 10,000 shares of common stock at $3 per share. The par value of the stock is $1 per share. During January of the current year, Porter bought back 500 shares at $6 per share, which were reported by Porter as treasury stock. The treasury stock shares were reissued later in the current year at $10 per share. Porter used the cost method to account for its equity transactions. What amount should Porter report as paid-in capital related to its treasury stock transactions on its balance sheet for the current year?
JE: To record original issuance
Cash 30,000
Common Stock 10,000
APIC - Common Stock 20,000
JE: To repurchase stock
Treasury Stock 3,000
Cash 3,000
JE: To reissue Treasury Stock
Cash 5,000
Treasury Stock 3,000
APIC - Treasury Stock 2,000
MCQ-05228
Under the Bonus Method, when will the bonus be credited to Existing & New Partners?
Existing Partners - When new partner pays MORE than NBV
New Partner - When new partner pays LESS than NBV
MCQ-00870
For subsequent events after the BS date, when are Footnote Disclosures required?
“Reasonably POSSIBLE”
MCQ-00916
What are the FS prepared for NFPs?
- Stmt of Financial Position
- Stmt of Activities
- Change in total net assets
- Change in net assets without donor restrictions
- Change in net assets with donor restrictions - Stmt of Cash Flows
Flashcards F6 M1
How are the accounts Unearned Rent and Deposits From Customers reported on the BS?
Liabilities
MCQ-08586
ABC changed from LIFO to FIFO. How should this be reported?
Report the cumulative effect of the changes as an adjustment to to Beg. RE, net of tax
GRaSPP
Modified Accrual & Current Financial Resources
- General
- Special Revenue
- Debt Services
- Capital Projects
- Permanent
MCQ-00888
SE-CIPPOE
Full Accrual & Economic resources (Government-Wide)
- Service (internal)
- Enterprise
- Custodian
- Investment
- Private Purpose
- Pension & Other Employees
MCQ-00888
What criteria must be met to not record the donation of art work or treasure?
Donated materials are recorded as revenue when received at FMV if it can be objectively determined
Contributions of art work do not need to be recognized as revenue if they are protected and held for display by the NFP and if sold the proceeds buy more art work
Flashcards F6 M3
Formula for “Patient Service Revenue”
Gross Patient Service Revenue
<Charitable>
--------------------------------------------
= Patient Service Revenue
MCQ-05672
</Charitable>
For universities what are common revenue without donor restrictions:
- Tuition
- Government grants / financial aid
- Gifts and private grants
- Endowment income
- Sales and services of educational departments
- Revenues of axillary enterprises
Flashcards
GRaSPP & SE & CIPPOE
Governmental Funds (Modified Accrual & Financial Resource)
- General
- Special Revenue
- Debt Service
- Capital Projects
- Permanent
Proprietary Funds (Full Accrual & Economic Resources) - Business Type Activities
- Internal Service
- Enterprise
Fiduciary Funds - Excluded from Government-Wide FS (the word “trust” = fiduciary)
- Custodial
- Investment trust
- Private Purpose trust
- Pension and Other Employee Benefit
MCQ-07244
MCQ-05056
