Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR > FAR 1 > Flashcards

FAR 1 Flashcards

1
Q

What are the 3 characteristics of Relevance?

A

“Relevant P.C.M” Predictive value Confirmatory Value Materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 3 characteristics of Faithful Representation

A

“Faithful C.N.F” Complete Neutral Free from error

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Whats included in Selling expenses

A

Freight out Sales people salaries Commissions Advertising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are general and Admin expenses?

A

Accounting Legal Insurance Officer Salaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the 5 requirements for revenue recognition

A

“ISTAR” Identify contract with customer Separate performance obligation Transaction Price Allocate Transaction price Recognize Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Requirments for point in time recognition

A

Right to payment Legal title for asset goes to customer Physical possession transfers Rewards and risks transfers Asset is accepted by customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the qualifications for Discontinued operations

A

Major strategic shift Disposal of major geographical area Disposal of major equity method investment Disposal of major line of business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the comprehensive income calculation

A

Net Income +Other comprehensive income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is managements requirement for Going concern?

A

Management is required to evaluate from one year of Financial statements being issued.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are mitigating factors that must be considered?

A

“M.I.S” Mitigating factors: whether its been implemented Whether the plans are successful

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the differences for going concern between GAAP and IFRS?

A

GAAP requires liquidation basis, IFRS Does not GC for GAAP is from FS issuance date GC for IFRS is from Balance sheet date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the subsequent event evaluation date for ISSUERS/GAAP

A

“issuers=issued” evaluation date is through the date FS are issued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the subsequent evaluation date for Non-issuers/private?

A

NON FS available Evaluation date is through the date the FS are available to be issued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the principal market?

A

Is the market with the greatest volume or level of activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the most advantageous market?

A

highest price after subtracting transaction prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the most advantageous market?

A

highest price after subtracting transaction prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the 3 valuation techniques?

A

“M.I.C” Market approach-market prices for identical item Income Approach-discounted cash flows Cost approach-current replacement costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are required disclosures for Fair value?

A

Valuation techniques-MIC and Inputs- level 1, 2, 3

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the 3 size tests for reporting segments?

A

“R.P.A” Revenue-10% of total segments revenue

Profit- 10% of larger of absolute value of loss/profit

Assets-10% of total segments assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is a 10K?

A

Annual form, financial disclosures, MDA and Audited FS LA- within 60 days A-within 75 days Others- within 90 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is 10Q

A

Quarterly forms, unaudited FS, interim MDA LA- within 40 days A-within 40 days Others- within 45 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is 11k?

A

Annual employee benefit plan report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is 20F?

A

Non us version of 10,, mda, audited FS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is 40F

A

Canadian 10K, MDA Audited FS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Form 6 K

A

“SIx Semi” semiannual foreign private issuers, unaudited MDA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Form 8 K

A

Reports major events corporate acquisitions, disposals, changes in governance or management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What sets the content requirements for interim and annual FS for SEC?

A

“SEX for SEC” Regulation SX

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What are the FS requirements for interim FS?

A

US 10 Q Form 6 K BS, IS and 1 CF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What are the requirements for annual FS?

A

2 BS 3 IS 1 CF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the accounts you use for Cash revenue to Accrual revenue?

A

Accounts receivable and Prepaid revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the accounts used for Cash purchases to accrual COGS?

A

Accounts payable and Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What are the accounts you use for cash operating exenses to accrual operatin expenses?

A

Accrued expenses and prepaid expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the current ratio?

A

Current assets/Current Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Quick ratio?

A

(Current assets - inventory)/Current Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

AR turnover

A

Net sales/Average AR net

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Inventory Turnover

A

Cogs/Average inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Profit margin

A

Net income/net sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Return on assets

A

Net income/Average total assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

How are assets valued in contributions to partnerships?

A

They are valued at fair value minus any debt on them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What is exact method of new partnership?

A

Is when a new partner is going to get a specific percentage so you calculate how much he would have to contribute.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What is the bonus method of a new partnership?

A

You calculate how much % they should have received base don their contribution. If they contributed less than the old partners have to split what they owe. If they contribute more, then the new partners can split the profit added to their capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is the goodwill method of a new partnership?

A

Basically you calculate what the value of the partnership should be based off what theyre contributing and the percentage they get. Then you compare that amount to what the new partnership amount is including their contribution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is a Large Accelerator?

A

common equity of greater than or equal 700 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What is accelerator?

A

common equity greater than 75 Million but less than 700 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is others?

A

Common equity less than 75 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What do you subtract from cash/book balance for Bank recs?

A

cash/book balance -bank service charges -NSFS -interest earned +any deposits that have gone to bank without company knowing = true balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What do you add/subtract to Bank statement balance for Bank recs?

A

Bank balance +DIT -OS checks = true balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Direct write off JE

A

DR bad debt expense CR Accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

AFDA method write off JE

A

DR AFDA CR AR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

% of sales method

A

Uses a percentage of sales to calculate bad debt expense for that year. Added to Allowance. Income statement approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

% of Accounts receivable

A

Use percentage of AR that will be your ending AFDA balance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Aging of receivables method

A

use the aging schedule that will be the AFDA.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Pledging

A

is when you use existing AR as collateral for a loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Factoring AR

A

is when a company converts AR to cash with or without recourse

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Notes receivable

A

presented at NPV

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Discounting notes receivable

A

First calculate total maturity amount Then x maturity amount times discounted rate for the time left

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Inventory write down reversals:

A

Are NOT allowed in GAAP Allowed in IFRS to extent of previous write down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

What is Lower of cost or market?

A

Take middle of: Replacement cost NRV (Sales price - cost to sell/dispose) Market floor (NRV - gross profit) Then compare middle to cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

What is lower of cost or Net Realizable value

A

Compare cost to Net realizable value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

FIFO

A

sell old, unsold are the newest Ending inventory and COGS are same in periodic or perpetual Rising prices- highest ending inventory, lowest COGS and highest net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

LIFO

A

Not allowed in IFRS Lowest ending inventory, highest cogs, lowest net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Weighted Average

A

Periodic best for homo products and periodic inventory divide total cost of inventory /total number of units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Moving Average Cost

A

Perpetual similar to weighted average but calculate new average after every purchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Price index for dollar value

A

“C.B” Current year/Base year cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Dollar Value Lifo

A

You always multiply the layer added to base year by the price index. The difference between years is the layer. you always divide current year cost at end of year/base year cost at end of year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Gross profit method

A

Used for interim FS for periodic inventory system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

How is Fixed assets valued under US GAAP?

A

Historical cost- cash price of obtaining the asset, bringing to location, and getting it into condition necessary for use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

How are donated fixed assets valued?

A

At FMV plus any incidental costs incurred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

What is the journal entry to record recieved fixed asset donation

A

DR Fixed Asset FMV CR gain on nonreciprocal transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What are the valuation methods for fixed assets under IFRS

A

cost model which is same as GAAP and Revaluation model Revaluation gains go on OCI Revaluation losses go on income statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Costs that are included in land

A

All costs up to excavation, excavation is not included title fees legal fees clearing of brush and trees subtract proceeds from sale of existing buildings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Costs included in Plants (buildings)

A

Costs from excavation and forward. purchase price repairs ignored by previous owner architect fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Equipment costs

A

invoice price freight in installation charges sales tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Interest capitalization

A

Use weighted average for expenditures use loan rate for up to loan amount anything over loan amount use the averaged rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Component Depreciation

A

depreciate a big unit by the individual units that make it up IFRS requires component depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Composite or group depreciation

A

is averaging economic lives of a number of property units and depreciating the entire class of asset by one single life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Sum of years depreciation

A

Higher deprecation in early years, smaller in later years Base X (remaining life/Sum of years digit) Sum of years digit= (Useful life X (useful life +1))/2 Use the same base every year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Units of production depreciation

A

Deprecation base /estimated units or hours = rate per unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

What is the only depreciation method that ignores salvage value?

A

Double declining

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Double Declining

A

(2/useful life) X NBV at beginning of period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

What is the journal entry to sale an item during its useful life?

A

DR cash received from sale DR accumulated depreciation (up to date of sale) CR asset original cost DR/CR for loss or gain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

How to record permanent impairment

A

DR accumulated depreciation per records DR loss due to impairment CR asset at full cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Commercial substance

A

Future cash flows will change as result of transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Gain or loss with Commercial substance

A

FV - BV of old asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Basis of new asset with commercial substance

A

FV of asset given up + cash paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

Lacks commercial substance

A

Future cash flows are NOT impacted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Steps for nonmonetary lacking commerical substance

A
  1. do the math FV - BV old= potential gain 2. Determine if boot received or paid *if boot received is greater than 25% recognize all, if less than 25% recognize the percentage *No cash received= no gain *if cash paid is more than 25% recognize gain, if less, no gain
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Recording nonmonetary transaction with no commercial substance

A
  1. Record cash 2. remove old asset 3. Remove accumulated depreciation 4. Record gain/loss 5. plug is the value of the new item
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Intangible assets

A

ones that are purchased are capitalized including legal and registration fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

IFRS valuation for intangible assets

A

Allows cost or revaluation method Revaluation gains- OCI Revaluation losses- Net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Research and Development costs

A

planned efforts to discover new information to create new product, service, process or technique or improve existing one

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Internally developed intangible assets

A

Most are expensed. Except for capitalized: Successful legal defense registration or consulting design costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Computer software development costs

A

Expense until Technological feasibility reached

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

Technological Feasibility

A

is when a detailed program design or working model is made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

Impairment testing

A

2 step for finite life: Step 1 Carrying value- undiscounted future cash flow step 2 Carrying value- discounted future cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

Where is impairment loss recorded

A

As component of income from continuing operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

Equity securities

A

CAn not be treated the same as debt securities TS and AFS. Instead they are FVTNI Measured at fair value, all gains/losses in net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

Debt Securities- Trading Securities

A

cash flow from operating measured at FV Gains/losses on income statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

Debt Securities- Available for Sale

A

Cash from investing realized gains and losses on income statement Unrealized gains and losses on OCI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

Debt Securities- Held To maturity

A

Cash from investing Amortized cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

Equity Method for investments

A

20-50% significant influence Income statement: % net income +% of gains -% of losses =income from investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

When is equity impaired?

A

When FV falls below CV and its not temporary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

Equity Method on balance sheet

A

purchase price +% income -% amortization -% dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

Fair Value method investements

A

No significant influence Less than 20% ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

Fair Value on balance sheet

A

Report at FV and gains and losses reported in net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

Fair value on income statement

A

% of dividends received is considered income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
107
Q

Acquisition method

A

Used to account for business combos Acquisition price is FV at date of transaction close

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
108
Q

Consolidation adjustments

A

CAR-common stock, APIC Retained earnings IN -investment in subsidiary, noncontrolling interest BIG-Balance sheet adjustment to FV, Identifiable intangible assets, Goodwill/gain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
109
Q

What fees are expensed during acquistion?

A

Finder fees, consultant fees legal fees due diligence costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
110
Q

How are registration fees handled?

A

Reduce APIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
111
Q

Noncontrolling itnerest

A

FV of subsidiary at acquisition date X noncontrolling interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
112
Q

Partial goodwill method

A

Fv of net subsidiarys net assets X NCI %

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
113
Q

Net identifiable assets

A

Subsidiary total assets - liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
114
Q

BIG

A

Compare book values to Fair values on acuqisiont dates adjust book to FV Identify intangible assets leftover is goodwill/gains

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
115
Q

Goodwill in aquisitoin

A

acquistion price>100% of subsidiaries assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
116
Q

IFRS goodwill impairment

A

Compares cash generating unit to nonrecoverable amount fv- costs to sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
117
Q

Current portion of longterm debt

A

principal due within the next year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
118
Q

Exit or disposal costs

A

costs to terminate contract involuntary employee termination-severance pay

119
Q

Asset Retirement obligation (liability)

A

legal obligation associated with retirement of tangible long lived asset

120
Q

ARO

A

Recorded at FV Accretion expense interest expense

121
Q

ARC

A

is the asset Depreciation expense

122
Q

Probable loss contingency

A

Record

123
Q

Reasonably possible

A

disclose

124
Q

Remote contingency

A

ignore unless DOG Debt of other related parties Obligations of commercial banks Guarantees to repurchase receivables

125
Q

Warranty Total liability

A

sales X estimated warranty expense

126
Q

Warranty payable at year end

A

Total liability - actual expenditures

127
Q

Present value of a $

A

used for principal of a bond used for salvage value of a lease

128
Q

Present value of annuity

A

used for bonds- coupon payments used for leases- lease payments

129
Q

Long Term liabilities

A

record at PV Interest can be stated or imputed

130
Q

Coupon/cash payment for note payables

A

= stated rate x face value annual payment mentioned in problem

131
Q

Interest expense

A

= effective rate x carrying value goes on income statement

132
Q

amount to principal in note payable

A

coupon payment - interest expense

133
Q

Imputed interest note payable

A

no cash payment/ no coupon Interest expense recorded

134
Q

Bonds

A

the liability is Reported at Face Value and the asset is recorded at present value with offsetting discount or premium

135
Q

Bond selling price

A

present value of future principal payments plus pv of future coupon payments

136
Q

Coupon payment for bonds

A

= stated rate x face value * the pv would use effective rate dont get tricked

137
Q

Bond issuance costs

A

costs incurred when bonds are issued such as legal fees, accounting fees, underwriting commison and printing Subtracted from initial carrying value

138
Q

Straight line amortization

A

results in constant interest expenses each period Not GAAP IFRS does not allow straight line

139
Q

Bonds with premiums

A

Interest expense is less than coupon payment

140
Q

Bonds with Discounts

A

interest expense is more than coupon

141
Q

Bonds with accrued itnerest

A

you always use face value and stated rate to calculate the accrued itnerest

142
Q

Requirements for lease classification

A
  1. contract must depend on identifiable asset 2. contract must give right to control the lease
143
Q

Lessee

A

Either Operating or financing (ownes)

144
Q

Lessor

A

“O.S.D” Operating sales type direct financing

145
Q

Criteria for Financing/Sales Type

A

“O.W.N.E.S” Ownership transfers from lessor to lessee Written option exits to purchase NPV of lese payments is 90% of assets fair value Economic life term is 75% of economic life of asset S specialized asset

146
Q

included in Lease payments

A

“REPORT N GO” Required contractual fixed payments Exercise option Purchase price at end of lease Only indexed or rate variable payments Residual guarantees Termination penalties

147
Q

Lease paymetns do not include

A

guarantees of lessor debt by lessee other variable lease payments

148
Q

Rate used in leases

A

“imply, then increment” Implicit rate if known, if not incremental rate

149
Q

Sales Leaseback

A

when a seller transfers control of an asset to buyer then leases it back from buyer If ownes, met, failed sale

150
Q

Initial direct costs

A

capitalized in ROU asset

151
Q

Operating lease

A

ROU asset ad Lease Liability LEase expense using straight line 1 expense under lease expense

152
Q

Finance lease

A

ROu asst and liability capitalize direct costs two expenses on income statement depreciation based on how entity does it Asset is decreased by depreciation Liability by the principal

153
Q

Sales type

A

Lessor Lesee gains control, lessor takes off books must record initial direct costs

154
Q

Direct Financing

A

stays on lessors books gains are deferred and amortized losses recognized immediately

155
Q

Amortization methods for leases

A

O.W- useful life NES- lower of useful or lease life

156
Q

Operating leases cash flow

A

Operating- lease payments, Investing-cost preparing for intended use

157
Q

Finance lease cash flow

A

Operating- interest payments, variable lease payments Investing- principal payments

158
Q

Derivative requirements

A

1 underlying, notional amount no initial investment settlement

159
Q

Long position

A

agrees to buy

160
Q

Short position

A

agrees to sale

161
Q

Deriviatve cash flow hedges

A

gains/losses on effective portion on OCI

162
Q

Foreign currency fair value hedge

A

reported on IS

163
Q

Foreign Currency Cash flow hedge

A

effective portion on OCI

164
Q

Foreign currency transactions

A

reported on income statement

165
Q

Foreign currency translations

A

“Translate OCI” reported on OCI

166
Q

CAL

A

Current exchange rate for Assets and Liabilities

167
Q

Historical exchange rate

A

used for capital accounts and equity

168
Q

WIS

A

Weighted average rate used for income statement accounts

169
Q

Foreign currency Remeasure

A

“remeasure IS” gain or loss on re measurement goes to INcome statement

170
Q

Intraperiod tax allocation

A

within this years income statement IDA PUFIER

171
Q

Total income tax expense

A

“Owe now + owe later” current income tax expense + DTL (-DTA)

172
Q

DTA/DTL

A

= temporary difference X future exacted tax rate

173
Q

Permanent differences

A

Interest on municipal bonds life insurance proceeds on officers key man life insurance premium when corporation is beneficiary DRD

174
Q

DTA

A

Future taxable income is less than future financial income

175
Q

DTL

A

Future taxable income is more than financial income

176
Q

Accumulated Beneift Obligation

A

uses current and past compensation levels

177
Q

Service cost

A

cost hat increases PBO for services performed

178
Q

Interest cost

A

increases PBO due to passage of time

179
Q

Return on plan assets

A

use either actual or expected returns

180
Q

Amortization of unrecognized prior service cost

A

results from amendemnt of pension plan. Divide by average remaining service life gives you the amount amortized

181
Q

Gains/ Losses

A

Unamortized amount is in AOCI Cooridor approach bigger of 10% of plan assets or PBO Subtract begining unrecognized gain or loss then divide the difference by remaining service life

182
Q

Plan assets calculation

A

Beginning plan assets +contributions to plan + actual returns on plan(plug) - benefits paid to plan memebers = Ending plan assets balance

183
Q

Overfunded assets

A

When FV of plan assets > then PBO noncurrent asset

184
Q

Underfunded PBO

A

aggregated as current or noncurrent liabilities

185
Q

AOCI

A

All the unamortized amounts are held in this bucket, when amoritzed you decrease AOCI and increase OCI

186
Q

Required FS for defined benefit pension plans

A

Statement of net assets available for benefits Statement of changes in net assets availble for benefits Statement of accumulated plan beefits Statement of changes in accumulated plan benefits

187
Q

Stockholders equity

A

Captial stock +APIC +Retained earnings +AOCI +noncontrolling interest

188
Q

Outstanding stock

A

issued stock, NOT including treasury stock

189
Q

Issued stock

A

all shares including treasury shares

190
Q

Book value per common share

A

Common shareholders equity/common shares outstanding

191
Q

Retained earnings

A

Beg RE + net income, - net loss - dividends declared prior period adjustmnets retained earnings

192
Q

Cost method of treasury stock

A

gain or loss calcualted when treasury stock is reissued/resold

193
Q

Legal par method

A

gain or loss reissued immediately upon the purchainss of treasury stock

194
Q

Stock subscriptions

A

contractual agreement to sell a specified number of shares at an agreed upon price on credit

195
Q

Date of declaration

A

DR retained earnings CR dividends payable

196
Q

Property dividends

A

adjust to FV on date of declaration. Record gain or loss Dr retained earnings CR dividend payable

197
Q

Scrip dividend

A

Basically a note payable where coproation agrees to pay dividend at later time Dr retained earnings CR notes payable

198
Q

Large Stock dividend

A

“large stock, PAR” greater than 20-25% DR retained earnings par CR common stock CR Apic

199
Q

Small stock dividend

A

“S.F” less than 20-25% use FMV DR retained earnings CR common stock CR apic

200
Q

Fiscal Accountability

A

showing that the government is using and following a budget

201
Q

Government Wide

A

“G.O” Government wide FS have operational accountability

202
Q

GASB

A

Government accepted accounting statndards board establishe accounting and reporting standards for governments

203
Q

Characteristics of Governmental financial reports

A

UR MICE Understandability Reliability Relevance Timeliness Consistency

204
Q

Governmental Funds

A

GRSPP General Fund Special revenue fund Debt Service fund Capital Project Permanent

205
Q

Proprietary funds

A

SE Internal Service Enterprise

206
Q

Fiduciary funds

A

CIPPOE Custodial Investment Private purpose Pension Other Employee

207
Q

Governmental funds characteristics

A

modified accrual basis current financial resource focus

208
Q

Proprietary fund characteristics

A

Full accrual basis economic resource focus

209
Q

Fiduciary Fund characteristics

A

Full accrual basis Economic resource focus

210
Q

Encumbrances

A

used to record purchase orders and is designed to monitor spending for increased budgetary control

211
Q

Recording budget JE

A

DR estimated revenue CR budgetary control CR appropriations control

212
Q

Categories of fund balances (NUCAR)

A

Nonspendable Restricted Committed Assigned Unassigned

213
Q

Internal Funds Facts

A

Established to finance and account for services and supplies provided to other departments

214
Q

Required FS for internal funds

A

Statement of net position RUN

215
Q

Enterprise funds facts

A

Accounts for operations financed and operated in a manner similar to private business

216
Q

FS for proprietary funds

A

INCASET income nonoperating income and expense Capital contributions Additions to endowments special items extraordinary items transfers

217
Q

Fiduciary Funds characteristics

A

assets controlled by government assets not own source revenue

218
Q

Cusotdial funds

A

collects cash to be held temporarily for an authorized recipient to whom it will later be disbursed

219
Q

What FS do custodial funds use?

A

statement of fiduciary net position and statement of changes in fiduciary net position

220
Q

Private purpose trust

A

Used to report trust arangements where pricipal and income are for beneift of specific individuals, private organizations or other governments

221
Q

Private purpose trust

A

Used to report trust arrangements where principal and income are for benefit of specific individuals, private organizations or other governments

222
Q

What does GASB 34 consider Basic FS

A

Government wide FS Fund FS notes to fs

223
Q

CAFR

A

presentation designed by government finance officers assocaitiont aht adds an introductory ection and statistical section to beginning and end of GASB 34 basic FS

224
Q

CAFR

A

presentation designed by government finance officers association that adds an introductory section and statistical section to beginning and end of GASB 34 basic FS

225
Q

what is a primary government?

A

IT SELF seperately elected governing body Legally seperate Fiscally independent

226
Q

what is a primary government?

A

IT SELF separately elected governing body Legally separate Fiscally independent

227
Q

What qualifies as blended

A

component unit is a sperate legal entity component unit seves only the primary government

228
Q

What FS are included in government wide?

A

Statement of net position Statement of activities

229
Q

What qualifies as blended

A

component unit is a seperate legal entity component unit serves only the primary government

230
Q

Whats included in government wide statement of net position

A

GRSPP + S Fiduciary funds not included component units are included

231
Q

What is included in government wide statement of activities

A

full accrual Governmental activities (GRSPP + S) Business activities (enterprise) Component units

232
Q

What is included in government wide statement of activities

A

full accrual Governmental activities (GRSPP + S) Business activities (enterprise) Component units

233
Q

Basic EPS

A

income available to common shareholders/weighted average common shares outstanding

234
Q

Stock dividends/splits

A

treated retroactively

235
Q

What are some potentially dilutive securities

A

Convertible securites warrants and other options contracts contingent shares

236
Q

Diluted EPS

A

income availble to common share holders + interest on dilutive securities (net of tax)/ WACSO + additional shares

237
Q

Treasury stock method for options/warrants

A

basically exercise option to buy additional shares and then sell them back. the difference will be the shares added to the wacso

238
Q

Dilutive

A

if market share price is higher than what you paid for it. dilutive becasue you would use your option then sell it on the market for more at the higher price

239
Q

Convertible securities

A

is when I can trade a bond for shares. So you add the interest back to the net icome becasue you wont have the outstanding bond anymore. then you see how much shares are added to wacso.

240
Q

Convertible preferred stock

A

does not effect income available to common shareholders

241
Q

Direct method cash flow

A

start with cash collected ignores noncash items such as depreicaiton, amortization requires reconciliation from net income to net cash flows from operating activities

242
Q

Indirect method

A

starts with net income net income +depreciation expenses +losses - gains

243
Q

Interest received and dividends received

A

dividends recieved - cash flow from operating Dividends paid- cash flow from financing

244
Q

Investing activities

A

selling AFS Buying HTM Making loans to other entities buying AFS buying ppe selling ppe

245
Q

Financing activities

A

cash from noncurrent liabilities and equity activities money from issuing stock paying cash dividiends obtaining funds from creditors paying principal

246
Q

Interest received

A

GAAP -CFO IFRS- CFO or CFI

247
Q

Interest paid

A

GAAP CFO IFRS- CFO or CFF

248
Q

Dividends recieved

A

GAAP CFO IFRS CFO or CFF

249
Q

Dividends paid

A

GAAP CFF IFRS CFO or CFF

250
Q

Taxes paid

A

GAAP CFO IFRS CFO/CFI/CFF

251
Q

What are NFP required FS

A

FAC those NFP FS Statement of financial position Statement of activities Statement of cash flows

252
Q

Functional classification

A

Functional PS Program services Support services

253
Q

Support services

A

FDM fundraising management development

254
Q

Statement of Financial Position

A

ALN Assets Liabiities Net assets (with and without restrictions)

255
Q

Statement of activites

A

Revenues, expenses, gains, losses and reclassification of net assets from restricted to nonrestricted

256
Q

Required parts of statement of activities

A

change in total net asset change in net assets without donor restriction change in net assets with donor restrictions

257
Q

How are revenues in NFP classified

A

Increases to net assets without donor restrictions

258
Q

Contribution

A

classified as revenue is when someone does something or gives you money without expecting anything in return

259
Q

Educational institutions revenue

A

student tuition fees government aid gifts and grants

260
Q

Educational revenue formula

A

assessed tuition - canceled fees = gross revenue tuition and fees

261
Q

Health care organizations

A

POR patient service revenue Other operating revenue nonoperating revenue and support gains/losses

262
Q

patient service revenue

A

Gross patient service revenue - charitable services = patient service revenue

263
Q

Other operatin revenue

A

Tuition from schools donated supplies and equipment cafeteria revenue parking fees gift shops revenue

264
Q

Nonoperating revenue and support

A

interest from investments gifts grants donated services

265
Q

FIFO to Weighted average is:

A

Change in accounting principle handled retrospectively

266
Q

Days in inventory

A

Ending inventory/(cogs/365)

267
Q

Liquidating dividend

A

total cash dividend declared - retained earnings = liquidating dividend its the amount over the retained earnings balance

268
Q

Interest revenue on noninterest bearing note

A

PV of note X market rate

269
Q

Equity Securities

A

Are marked to fair value at balance sheet date

270
Q

Fair value warrants

A

Calculate the total issuance of the bonds then subtract the warrant x fv per warrant. The difference will be allocated to bonds.

271
Q

Derived tax revenues

A

nonexchange transaction that derives its revene from exchange transactions such as sales tax on sales and income tax on operting income

272
Q

Imposed non exchange

A

property taxes adn fines

273
Q

Voluntary nonexchange

A

grants

274
Q

Retirment uner the bonus method

A

any premim paid to the retiring partner is allocated to remaining partners acounts based on profits and loss ratios

275
Q

Retirement under the bonus method

A

any premim paid to the retiring partner is allocated to remaining partners acounts based on profits and loss ratios

276
Q

Decommissioning is the same as ARO

A

any change in the value of the liability after it has been fully depreciated will be recognized in profit or loss

277
Q

Loss from discontinued operations

A

Includes operating losses + impairment losses in the year its impaired.

278
Q

Acquisiton method: FV of subs net assets- BV of subs net assets =

A

Asset fair value difference

279
Q

Acquisiton price + NCI at FV - FV of subsidiary net assets =

A

Goodwill

280
Q

Cash flows from operating

A

Operating income

less increases in assets

plus increases in liabilities

plus depreciation expense

= cash flow from operating

281
Q

The Amortization of premiums on bonds payable

A

Reduces both interest expense and carrying value

282
Q

What kind of cash flows are lease payments?

A

Cash to principal- financing cash flow

Cash for interest- operating cash flow

283
Q

Advance cash received from related parties are ?

A

Are financing activities

284
Q

Operating Activities in cash flow

A

short term asset and liability changes

285
Q

Investing Activities in cash flow statement

A

deal with long term asset changes

286
Q

Financing activities in cash flow

A

Deal with equity and long term liabilities

287
Q

How is amortization of bond discount reported in cash flow

A

In operating activites as addition to income

288
Q

How are premium amortization reported in CF statement

A

As reduction to icome in operating activities

289
Q
A
290
Q

Journal entry for amortizing of gain in pension plans

A

DR OCI

CR net periodic pension cost

291
Q

Legal fees and due diligence costs

A

are expensed in the period incurred

292
Q

Acquisition costs

A

are expensed as incurred

293
Q

Assets in troubled debt restructuring

A

Ordinary gain or loss recognized from adjsuting to FV

The gain / loss on resstructing is FV compared to liablity carrying value

FAR (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions