F3 - Asset and related accounts

Question 1

Bank reconciliation Book > Bank

Answer 1

Beg balance I B S N

	Interest income – ADD to books
	Bank collections – ADD to books
	Service charges – DEDUCT from books
	Non-sufficient funds – DEDUCT from books
	Errors – Adjustment to either

Question 2

Bank reconciliation Bank> Book

Answer 2

 BANK
 Deposits in transit – ADD to bank
 Outstanding checks – DEDUCT from bank

Question 3

in a period of rising prices ow would inventory COGS and NI be affected?

Answer 3

FIFO EI - H COGS - L NI - H

LIFO EI - L COGS - H NI - L

Question 4

What types of assets is impairment calculated on?

Answer 4

Fixed asset
Intangibles with a finite life
intangibles without finite life
Goodwill

Question 5

What is the recoverability test for fixed assets?

Answer 5

Net Carrying value

= impaired
if the CV > undiscounted CF’s than impairment exist

Question 6

How do you test impairment

Answer 6

1: Is the carrying value greater than the undiscounted future cash flows?

2: FV
- CV
=impairment loss