Far 1-2 Flashcards
Diluted EPS formula if-converted
NI-Preferred Div +Interest Expense/WACSO +shares converted
losses usual and frequent are reported
continuing operations, no separate disclosure
Which of the following is not a comprehensive basis of accounting other than generally accepted accounting principles
Basis of accounting used by an entity to comply with the financial reporting requirements of a lending institution
Comprehensive income recorded?
Net of tax
from cash basis to accrual - Accounts receivable and uneraned revenue
+ Ending AR - Beginning AR - Ending UE Rev + Beg UE Rev
from cash basis to accrual basis - Accounts Payable and Inventory
+ Ending AP - Beginning AP - Ending Inv + Beg Inv
from cash basis to accrual basis - Prepaids and Accrued Liab
+ Ending Accrued Liab - Beginning Accrued Liab - Ending Prepaid Expenses + Beginning Prepaid Expenses
Depreciation with salvage value
Subtract total depreciation-salvage value, divide by amount of months. Subtract the accumulated depreciation from the amount without salvage value.
Return on Assets formula
Net income/average total assets
days in inventory
ending inventory (for the year)/ COGS/365
What was days sales in accounts receivable?
ending accounts receivable (net) by the sales (net) / 365.
Net realizable value computation
Net realizable value is computed as selling price less costs to complete and sell
inventory turnover ratio
cost of goods sold for the year and dividing this by the average inventory
Under U.S. GAAP, a material transaction that is “infrequent in occurrence” and/or “unusual in nature” should be presented?
separately as a component of “income from continuing operations”
Net profit margin is calculated
net income divided by net sales
Best way to calculate wacso
Total shares * period outstanding = weighted average
development cost of patent are
expensed
purchased intangible assets are recorded at
cost
days in sales AR
ending accounts receivable (net) by the sales (net) / 365.
