Deck 9 Flashcards
how is debt associateed with enterpirse or propreitary funds classified?
ignore the debt if accounting for government wide governmental activities
do governmental funds prepare cash flows?
no! only nfp and proprietary funds
what account is debited at the inception of a government fund lease?
expenditures control for principal portion only
how are initial funds in the custodial fund recorded?
CASH
ADDITIONS-tax collections for other gov
subsequent entry
DEDUCTIONS-payment of cash to other gov
when using the cost method for t-stock, how does common stock change once issued?
it doesnt. once issued at par, that is it. T stock transactions only affect t stock apic etc
how many balance sheets and income statements should regulation S-X report contain?
2 balance sheets
3 income statements, equity, cash flows
how is perpetual lifo calculated?
start with date of purchase pirce and move backwards until those are sold. The go to next purchase date and repeat until those are sold. this equals total cogs
when is the estimated revenues control account eliminated?
when the budgetary accounts close
how does treasury stock affect common shares outstanding?
reduces it by the treasury srock amnt purchased
in a governmental fund, how is bond interest recorded?
record when it is legally payable(measurable and available)
how are liabilities reported in the balance sheet that are due in less than 1 year?
at face value-do not include interest!
what do liquidating dividends reduce?
APIC only, no effect on RE
what is an indication that there is not enough equity at risk?
if the equity at risk is less than similar non-vie entities, meaning if it has less than its friends etc
how are patents capitalized and amortized?
amortize over smaller of leagal or estimated remaining life
what are the 4 main criteria for fair value hedge derviitives?
highly effective in offsetting hedge
hedging relationship
specifically identifiable
presents exposure to fair value changes
