F2 M7

Question 1

what financial statements presentations are required under other comprehensive basis of accounting (OCBOA)?

Answer 1

1) F/S titles differ from accrual
2) balance sheet
3) income statement
4) statement of changes in equity
5) no cash flow statement

Question 2

converting from cash basis revenue to accrual basis revenue

Answer 2

cash basis revenue
+ ending AR
- beginning AR
- ending unearned revenue
+ beginning unearned revenue

Question 3

converting cash paid for purchases to COGS

Answer 3

cash paid for purchases
+ ending AP
- beginning AP
- ending inventory
+ beginning inventory

Question 4

converting cash paid for operating expenses to accrual basis operating expenses

Answer 4

cash paid for operating expenses
+ ending accrued liabilities
- beginning accrued liabilities
- ending prepaid expenses
+ beginning prepaid expenses