Far 1 Flashcards
Net Concept records ____ and ___ at their net amounts (i.e. proceeds less book value)
GAINS; LOSSES
Single Step Income Statement
Includes total revenues and purchase discounts are not included
Accounting formula
A = L + OE
Discount on bonds payable is ____________ when adding liabilities
subtracted
Other Income on IS Consists of _______ on available for sale securities
Gain
Form 8k reports on major__________ events including change in a registrant’s certifying __________, creaunregistered sale of equity securities and creation of off- balance sheet arrangement of registrant.
Coporate; Accountant
Quarterly results of operations are reported on Form ____________
10Q
Basic EPS = Net __________-___________Dividends / Weighted __________stock outstanding
income; Prefered; Common
Diluted EPS = ___________ available to the ___________ stock shareholder + __________ of dilutive securities / weighted average number of ___________ shares (assuming all dilutive securities are converted to common stock)
income; common; interest; common
Adjusted NI= Net _________ + __________ Expense - ____ deduction
Income; Interest; Tax
Cost method in calculating APIC includes the __________ of the ___________ shares
Reissuance; treasury
Treasury stock - stock bought back by __________ reducing the amount of ____________ stock on the open market
the company; outstanding
Stock held by a company should be a __________ to owners equity
reduction
Arrears is money that is ______ and dividend arrears are recorded when a __________ is __________
owed; dividend; declared
When using the cost method when accounting for treasury stock, the gain on sale of treasury shares is reported by increasing ___________
additional paid in capital
Par (Legal) Method - under Par (legal) method APIC is debited for losses when TS is repurchased. RE is further reduced is not enough APIC to absorb loss. For all gains, APIC is credited.
When a company plans to sell a group it owns, it can classify it as discontinued operations when the asset is classified as ___________
Held for sale
Par Value method journal entry of a repurchase of stock includes a _______ to _________ stock, additional paid in capital and _________ ___________
Debit; treasury; retained earnings
Gains on foreign exchange rates are included in Net _________ before ___________ Operations
income; discontinued
Transaction settled for 120,000 usd when contract was for 80,000 pounds at 1.60 would imply a exchange rate of 120/__ =1.5 which would be a gain of ___ -1.5 *80000
80;1.6
____________ adjustments, __________ gains on AFS, _________ currency item, and __________ specific credit risk are all included in other ______________ income
pension, unrealized; foreign; instrument; comprehensive
Impairment loss = ________ Value - FMV of _________
Book; Assets
Adjusted shares outstanding is shares ____________ - common + conversion of ___________ shares + conversion of ________
outstanding; preferred; bonds
a company that is an accelerated filer that is required to file a form 10k has ____ days from year end to file the 10k
75
Straight-line amortization: ________ expense is reported each period
INTEREST
Effective interest amortization
The amount of interest rate amortized over the life of a bond. A method used to write down an asset
a transaction denominated in a foreign currency is recorded at the _____ rate on the date of the transaction
spot
a company is required to present balance sheets on form 10Q in which period? ans. The end of the _______ ______ year
preceding fiscal
When calculating accumulated other comprehensive income you should include unrealized loss on AFS and actual return on pension plan assets? (T or F)
FALSE; unrealized loss doen’t go to accumulated OCI and actual return on plan assets is not a part of AOCI.
Does amortization of actuarial pension loss increase or decrease accumulated other comprehensive income?
ACTUARIAL PENSION LOSS WILL INCREASE AOCI
Are Nonmonetary exchanges of common stock for productive assets included in comprehensive income?
NO
Unrecognized prior service cost ________ OCI and unrecognized pension gains ________ OCI
DECREASE; INCREASE
Cumulative dividends included the all years outstandings
Nonmonetary exchanges of common stock for productive assets is not found in ____________ income
COMPREHENSIVE
To calculate basic earnings per share________ _______ number of common shares must be calculated
WEIGHTED AVERAGE
Other Comprehensive income is reported ____ of ______ when reporting comprehensive income
NET; TAX
what is the purpose of comprehensive income
to summarize all change in equity from nonowner sources
Preferred stk dividends are paid on ____ value not on ____ price.
PAR; SALES
E.G. after dividends in arrears have been paid, stock div to be paid = (4000sh * $100 * 6%)
How are stock dividends and stock splits treated?
They are treated as if they happened at the beginning of the year
