F1-M1 BS, IS, CI

Question 1

No. of Shares O/S?

Answer 1

Beg Bal: No. of Shares Authorized
Plus: Stock Divd (Shares o/s * % stock Divd)
Plus: T-stock re-issued
Less: T-stock share purchased
Equal: Total Shares o/s
Multiple Bal. x Stock split (2 or 3)
End Bal: Share o/s @ period End

Question 2

Date to decrease RE by the amount of Divd?

Answer 2

Date of Declared Divd.

Question 3

FA sold asset used for operations for greater than its carry amount. Report the transactions on Income Statement:

Answer 3

Net concept, showing the gain as part of continuing operations, not net of income taxes

Question 4

Comprehensive income excludes changes in equity resulting from:

Answer 4

Dividends paid to stockholders

Question 5

Earliest point at which Envoy report the small applicance group as a discontinued Op?

Note: Operations and cash flows for this group can be clearly distinguished from the rest of Envoy’s operations.

Answer 5

When Envoy classifies it as held for sale.

Question 6

Current exchange rate is 1.59 USD per GBP. For Quote, using direct method, GBP to USD

Answer 6

1 GBP/1.59 USD = 0.63 GBP to 1USD

Question 7

Correct statement regarding Comprehensive Income?

Answer 7

The relationship b/w NET INCOME and RETAINED EARNINGS is analogous to the relationship b/w other COMPREHENSIVE INCOME and ACCUMULATED OTHER COMPREHENSIVE INCOME.

Question 8

The following will cause comprehensive income to decrease (ignoring taxes):

Answer 8

An unrealized loss on a trading security - Comprehensive income is calculated as a NI + OCI.

An unrealized loss on a trading security will be recorded as a loss on the income statement, which will reduce net income and therefore comprehensive income.

Question 9

The following is included in Accumulated Other Comprehensive Income/Loss:

Answer 9

Prior service costs not previously recognized as a component of net periodic pension costs.

Prior service costs recognized in the year of adjustment should be recorded to PBO and OCI (or loss), which then becomes part of Accumulated Other Comprehensive Income (or loss).

The unrecognized prior service cost in Accumulated Other Comprehensive Income (or loss) is amortized to pension expense over the plan participant’s remaining years of service.