FAR 1

Question 1

What is the purpose of reporting comprehensive income?

Answer 1

To summarize all changes in equity from nonowner sources

Question 2

Where is Accumulated Other Comprehensive Income (AOIC) reported?

Answer 2

Stockholders equity section of the balance sheet until realized, then reclassified through net income and balance of AOIC on BS is reduced

Question 3

Other Comprehensive Income Items

Answer 3

Foreign Currency translation gains or losses
Gains and Losses (effective portion only) on derivative instruments that qualify as cash flow heges
Unrealized holding gains and losses on AFS securities
Pensions or postretirement gains or losses
Prior service costs or credits

Question 4

Primary Purpose of a Statement of Cash Flows

Answer 4

Provide relevant information about the cash receipts and cash disbursements of an enterprise during a period

Question 5

Goodwill

Answer 5

Cash Paid - (FV of assets - Liabilities)

Question 6

Noncontrolling interest is reported in

Answer 6

Owners Equity Section