F1

Question 1

What is the difference between single step IS and multi step IS?

Answer 1

Multistep reports operating revenues and expenses separately from nonoperating revenue and expenses. Single step combines

Question 2

Recording the disposal of a major/unusual/infrequent item on the IS

Answer 2

Listed under NONoperating.
G/L is just sales price - carrying value at time of sale

Question 3

When is the sale of something reported on the IS?

Answer 3

It is recorded in the year it is held for sale.
G/l is not recorded until it is sold

Question 4

PUFI =

Answer 4

Pension adjustments
Unrealized g/l- only from available for sale, or CASH FLOW hedges
Foreign transaction adjustments
Instrument specific credit risk

Question 5

Where is accumulated OCI reported?

Answer 5

Balance sheet. OCI for current year on IS

Question 6

Form 10-k deadlines and threshold

Answer 6

60 days- large accelerated (over $700m market value)
75 days- accelerated ($75m - 700m market value OR 100m revenue)
90 days- all others (less than 100m revenue)

Question 7

Form 10-Q deadlines

Answer 7

40 days- large accelerated and accelerated
45 days- all others
(thresholds listed on 10-k)

Question 8

Rules for reporting EPS on statements

Answer 8

ALL public entities must report EPS on face of IS
If you have simple capital structure, only need Basic EPS
Complex structure or if you have discont. op. = must present basic and diluted EPS

Question 9

Basic EPS formula

Answer 9

Net income available to shareholders (NI - preferred dividends) / WACSO

Question 10

Components of Comprehensive Income

Answer 10

PUFI and net income + other comprehensive income

Question 11

Trigger to know if EPS will be diluted

Answer 11

Only if average price > strike price

Question 12

What is dividends in arrears?

Answer 12

the dividends that must be paid to preferred sh before common sh get any

Question 13

JE for Treasury stock- original issue to Shareholders

Answer 13

Dr: cash
Cr: common stock (shares x par value)
APIC: plug

Question 14

JE for Treasury stock- company buys back

Answer 14

Dr: treasury stock
Cr: cash

Question 15

JE for Treasury stock- Reissue above cost

Answer 15

Dr: cash
Cr: treasury stock (total repurchase price)
Cr: APIC (plug)

Question 16

JE for Treasury stock- Reissue below cost

Answer 16

Dr: cash
Dr: APIC (shares x par value)
Dr: RE (plug)
Cr: Treasury stock (plug)

Question 17

Difference between issued and outstanding stock

Answer 17

Issued stock is all shares sold to investors, including outstanding and treasury stock
Outstanding is all shares held by investors less treasury stock

Question 18

Percent thresholds when you treat a dividend as a small stock dividend vs large, and what you use to value it at

Answer 18

small- less than 20-25%. use FMV value
large- >20-25%. use PAR value

Question 19

Comprehensive income includes all changes in equity during a period except..

Answer 19

anything involving the owners of the company

Question 20

when computing EPS, how are stock dividends that occurred thru the year treated?

Answer 20

As if they occurred at beg. of year

Question 21

Are gains and losses from discontinued operations included in revenue total?

Answer 21

No

Question 22

What is added to EPS when calculating DILUTED EPS?

Answer 22

All POTENTIALLY dilutive convertible bonds and preferred stock are used

Question 23

what entry is made when rights are issued for stock sales to shareholders

Answer 23

NO ENTRY