Day 31 / Cram Day 2 Flashcards
The carrying amount of the bond=
The bond payable amount
Minus
The unamortized discount
The orientation of accounting and reporting for all proprietary funds of governmental units is:
Income determination
Proprietary funds use full Accrual and measurement focus is on net income and capital maintenance
MCQ-00898
Equation: Times interest earned
EBIT/interest expense
MCQ-04968
For GAAP, how much profit is recorded when an installment sale occurs?
100%
Unless there are doubts on collectability
MCQ-00547
When computing the weighted average number of shares outstanding, what midyear event must be treated as occuring at the beginning of the year?
A stock dividend (or a stock split)
MCQ-01123
For long term construction contacts, under GAAP, revenue is recognized when
Engineering estimates of completion, or “costs incurred to date” vs “estimated total costs” is the basis for recognizing revenue
Not progress billing
MCQ-00658
What is a feature of XBRL?
eXtensible Business Reporting Language
Utilizes tags that identify and define data
MCQ-14825
Under the legal method G/L of Treasury stock affect:
APIC and then RE
MCQ-00738
What amount of revenue is required for reportable segments
10% of revenue = reportable segment
MCQ-00127
How do you calculate the net investment in Capital assets in the government wide Stmt of net position?
Capital assets
Less: A/D
Less: Related debt
MCQ-05611
Instead of a cash dividend, ABC declared a property dividend from it’s overstocked merchandise. The excess merchandise’s carrying amount over it’s market value should be:
Reported as a reduction in income before income from continued operations
MCQ-01530
How is a change in depreciation method handled?
It is considered a change both a accounting principle and estimate. But treated as a change in estimate.
The new depreciation method should be used at the beginning of the year starting with the current book value of assets.
No retroactive adjustment should be made to RE
MCQ-00221
Compared to Accrual, Cash basis accounting understates income by the net decrease of:
Accrued Expenses
Note: a decrease in A/R means cash came in and cash basis income would increase
MCQ-00557
What is true about Compensatory Stock Options/Plans?
- Compensation expense is allocated over the employee’s service period
- Compensatory stock options/plans are valued at the fair value of the options issued.
- When employee stock options expire, there is no impact on compensation expense, instead, the remaining balance is reclassified in APIC - Stock Options acct
- There is no journal entry recorded by the company on the grant date or the date the options are issued
MCQ-00911
How much of operating losses should be included in the loss from discontinued operations?
The entire year of operating losses, regardless of whether the losses occured before or after the decision to dispose the business segment was made.
MCQ-00077
When computing diluted earnings per share, convertible securities are:
Recognized only if they are dilutive
MCQ-01211
What account is affected by a noncompensatory stock option/purchase plan provided to eligible employees?
Additional Paid In Capital
When an employee purchases common stock above its par value, APIC is Credited
MCQ-01425
Treasury Stock transactions affect Stockholders’ Equity how?
All Treasury Stock transactions decrease Total Equity
MCQ-01520
Equation: Weighted Avg. # of Common Shares Outstanding
WACSO
“wax on WACSO”
Time-Weighted Basis
Shares outstanding @ beg.
+ Shares Sold
- Shares Reacquired
+ Stock Dividends & Stock Splits (retroactively adjusted)
- Reverse Stock Splits
——————————————————
= WACSO
MCQ-01203
The rule of thumb for the use of the correct fund is:
- Monitoring (Admin involvement) = Special Revenue Fund
- Non-monitoring (no Admin involvement) = Custodial Funds
MCQ-07928
Formula for Converting Cash to Accrual
Cash Basis Revenue
+ Ending AR
- Beginning AR
- Ending Unearned Revenue (Prepaids)
+ Beginning Unearned Revenue (Prepaids)
——————————————————–
= Accrual Basis Revenue
MCQ-07548
Assets associated with a water and sewer Enterprise Fund would be classified as:
Business-Type Activities on the Government-Wide Financial Statements
TBS-002075
Where would Equipment assets for a Pension fund appear on the Government-Wide FS?
No amounts with the Pension Fund assets should appear on the Government-Wide Financial Statements
TBS-002075
