Deck 8

Question 1

what goes into ending inventory?

Answer 1

merch purchased fob shipping point, so its our inventory because it was shipped already.
merch sold fob destination if it has not yet reached the buyer. It transfers ownership once arrived at destination.

remove goods held on consignment if it has not yet been removed from inventory if not yet sold.

Question 2

why do stock splits and stock dividends add to shares outstanding at the beginning of issuance?

Answer 2

to keep the price stable.

Question 3

how are gov. claims and judgent expenditures calulated?

Answer 3

sum of claims paid+ the increase in the current liability. non-current liability is not a government expenditure

Question 4

how are financials reissued?

Answer 4

if the financials have been reissued once, do not reissue a second time!

Question 5

what is the requirement for SEC filers vs non SEC filers?

Answer 5

subsewuent eval period for SEC-up to date financials are issued, but not required to disclose the date the financials have been evaluated.

non-sec, date financials are available to be issued

Question 6

if a NFP earned and distributed, what do u do?

Answer 6

add earned, and subtract distributed amount. READ Carefully

Question 7

what is a notion vs underlying?

Answer 7

notianal-shares of stock

underlying-price per share

Question 8

how is interest income caluclated?

Answer 8

face amount of loan
less any fees
X rate
Xmonths outstanding/12

Question 9

how are net assets in government wide financials classified?

Answer 9

net investment in capital assets, unrestructed, restricted

Question 10

how is a NFP beneficiary interest recognized in the financials?

Answer 10

on statement of activities

interest in net assets x
interest in net assets-stmt of activities x

Question 11

how are enterprise, proprietary funds for transfers reported in cash flow?

Answer 11

noncapital financing activities

Question 12

when a lease has a written purch option or transfers title, how is the capitalized asset depreciated?

Answer 12

depreciate over life of asset, not lease

Question 13

what is subtracted from OCI?

Answer 13

prior service cost not recognized in net periodic pension cost. if it was recognized, add it in that year to OCI

Question 14

how would a cumulative foreign exchange loss be presented in equity?

Answer 14

debit AOCI

credit OCI-close it out to AOCI

Question 15

what would go into the permenent fund(grasp fund)?

Answer 15

restricted for earnings to go towards a purpose

Question 16

how are dividends and interest received reported in a NFP?

Answer 16

increases net assets

only g/l are on activities

Question 17

how is net patient service revenue computed?

Answer 17

patient revenue
less charity care
less contract dispute

provision for bad debts is an expense not contra revenue

Question 18

how are routine employer contributions classified in governmental accounting? general–> pension trust

Answer 18

expenditure in general fund

Question 19

how is a change that is inseperable from change in principal or estimate be reported?

Answer 19

change in estimate. report in year of change and so on in income statement from continuing ops

Question 20

if a check has not yet been mailed out, but written how is it reported?

Answer 20

add back to cash and AP balance

Question 21

if there is a deductible clause to a contingent liability, how is it reported?

Answer 21

accrue full amount until insurance is paid out, then when it is it would be a gain

Question 22

how are lease improvements amortized?

Answer 22

over shorter of est life left or asset life

Question 23

how is the reacuisition price calculated in a bond restructure?

Answer 23

face value multiplied 102 or whatever its called at.

Question 24

what type of inventory declines are recognized in interim financials?

Answer 24

permenent only. temporary are not reported in interim. nor are reversals of declines in interim.

Question 25

what is the basic criteria for reporting a gov unit?

Answer 25

financial accountability

Question 26

once tech feasibility is established are costs expensed or capitalized?

Answer 26

capitalized and amortized once placed into service- computer software only

Question 27

if you are trying to find an expense is it accrual to cash or cash to accrual?

Answer 27

use accrual to cash add decreases in assets, add increases in liabilities

Question 28

when does interest capitalization end?

Answer 28

when the asset is ready for use

Question 29

are costs expensed or capitalized before tech feasibility?

Answer 29

expense usually r&D capitalize after feasability unless its interest

Question 30

in an aquisition, how is investment in sub recorded with contingent consideration?

Answer 30

add contingent consideration to purchase price at fair value for a stock purchase