F1 - SIMs Flashcards
1
Q
Unrealized Gain or Loss on Equity Securities
A
Goes on Income Statement
2
Q
On Depreciation and error in estimation,
A
When adjusting for years consider the “life” (accumulated) for the REMAINDER of life of Asset
3
Q
SE - Stockholders’ Equity
A
Common Stock
Additional Paid-in-Capital
Treasury Stock ( it will be a negative )
Retained Earnings (add Net Income)
4
Q
If Company is changing it method of valuation BC
A
Expects COGS to decrease
Improve NI
Improve Shareholder return
Improve stock price
Then a change in Accounting Principle is NOT acceptable
