FAR ① Flashcards
1
Q
the presumption that the relevant taxing authority will examine the tax position and has full knowledge of all relevant information
a. tax position
b. recognizing the tax benefit
A
報稅優惠跟公司採取的稅收立場不一樣
2
Q
debits to operating expenses 100
prepaid expense change +5
accrued liabilities change +12
what amount did the company pay for operating expenses?
A
93=100+5-12
3
Q
lack commercial substance.
old originally cost 23,000, accumulated depreciation 20,000, FV 5,000.
new original cost23,500, accumulated depreciation 19,900, FV 5,700
paid 700 in cash to get the new one/
what amount is the new book value?
A
new 3700 (plug)
accumulated depreciation 20,000
old 23,000
cash. 700
4
Q
infrequent in occurrence but not unusual in nature
A
present separately as a component if [income from continuing operations] whrn the transaction result in a gain or loss
5
Q
consolidated stockholder’equity
A
=CS+ APIC + RE + NCI
NCI
①noncontrolling interest = FV of S × noncontrolling rate
②+NCI share if net income= count the S net income× noncontrolling rate
beg. +[net income]-dividend =end.
③-NCI share of divident
6
Q
cash paid for operating expenses 150
prepaid expense change +5
accrued liability. change +20
if cash is paid for operating expenses if converted to accrual-basis operating expenses, what amount of operating expense?
A
165=150-5+20
7
Q
financial statement are considered to be available to be issued when
A
- the financial statement are in a form and format that comply with GAAP
- All approvals necessary for the issuance of the financial statements have been receive./the financial statements have been widely distributed to financial statement users.
8
Q
financial lease lessor will record
1. depreciation expense
2. interest revenue
A
2 only
9
Q
cash flow from operating activities would reconcile to what amount?
operating income 40
total change in net position 150
increase in a current assets other than cash 30
increase in current liabilities including 15 current portions of revolving debt 50
depreciation expense 70
gain on disposal of fixed assets. 2
A
115=40-30+35+70
10
Q
basis of accounting required for government-wide financial statements
A
accrual
11
Q
in a business combination, each of the following types of cost is expensed as incurred except for
A.registration and issuance cost
B.fees paid to attorneys
C.indirect costs such as temporary occupancy cost
D.fees paid to investment bankers
A
A. the cost should reduce APIC
12
Q
adopted the budget
A
estimate revenue
appropriation control
budgetary control
13
Q
elected the fair value measurement option must apply the accounting measurement based on
A
instrument by instrument basis
14
Q
The country has acquired equipment through a lease agreement.
lease payment 65
principal 50
interest 15
應該如何記賬？
A
lease liability(principal) 50
expense control 15
cash. 65
15
Q
what are the total shares of CS at the end of the year?
beg. 100,000
Mar 1 issue 15,000 shares of CS
June 1 resold 2,500 shares of TS
Sep 1 completed a 2-for-1 CS split
A
235,000
16
Q
the total amount of insurance premiums paid?
prepaid insurance at Dec31 year 1. $105,000
change to insurance expenses during year 2 $437,500
prepaid insurance at Dec31, year 2. $.122,500
A
[455,000]
beg. 105,000
add payment. X
less expense -437,500
= 122,500
17
Q
increase unassign fund balance in the general fund at year-end?
A
appropriations exceed actual expenditures
18
Q
the amount of OCI?
net income 34
owner contribution 9
deferred gain on a cash flow hedge 8
foreign currency translation gain 2
prior service cost not recognized in net periodic pension cost 5
A
5=8+2-5
19
Q
XBRL has which of the following features?
A. XBRL tags definde the data
B. XBRL does not require the use of tag
C. XBRL is interchangeable with HTML
D. XBRL is interchangeable with SQL
A
A.eXtensible business reporting language utilizes a taxonomt with tags that identify and defice data found within the financial statements and supporting footnotes.可擴展的業務報告語言使用帶有標籤的分類法，用於識別和缺陷在財務報表和支持腳註中找到的數據。
XBRL 具有以下哪些特性？
A. XBRL 標籤定義數據
B. XBRL 不需要使用標籤
C. XBRL 可與 HTML 互換
D. XBRL 可與 SQL 互換
20
Q
lacked commercial substance.
new FV 20,000 and cash 5,000
old cost 80,000, accumulated depreciation 64,000, and FV 25,000
what amount of gain should be realized?
A
new 20
cash 5
accumulated depreciation 64
old cost 80
plug 9
cash%= 5/25=0.2
gain = 9*0.2=1.8
21
Q
A.co enter into a troubled debt restructuring agreement with N.N agreed to accept land with a CV of 75, and FV of 100 for a note with CV of 150.
what amount should A.co report as a gain on trouble debt restructuring in its income statement?
A
[50]
Cacellation of debt 150
- FMV asset exchanfe 100
gain on restructuring 50
如果問題問gain on disposal exchange
FMV asset exchange. 100
NBV asset exchange. -75
gain on disposal/exchange 25
22
Q
which of the following item is not subject to the application of intraperiod income tax allocation?
A. accounting principle change(retrospective)
B.operating income
C. discontinued operations.
D.income from continuing operations
A
B. GAAP does not require intraperiod income tax allocation to operating income.
23
Q
which leads to the use of fund accounting by a government organization?
financial control
legal restrictions
A
both.
fund accounting enable service and mission-driven organizations to easily monitor compliance with spending purpose(legal restrictions), spending limits(budget and financial control), and other fiscal accountablity objectives.
基金會計使服務和任務驅動的組織能夠輕鬆地監控對支出目的（法律限制）、支出限制（預算和財務控制）和其他財政問責目標的遵守情況。
24
Q
in what fund type should the proceeds from special assessment bonds issued to finance the construction of sidewalks in a new subdivision be reported?
special revenue funds
enterprises fund
capital projects fund
custodial fund
A
為資助新建小區人行道建設而發行的專項評估債券的收益應在何種基金類型中申報？
capital projects fund
25
when the equity method is used to account for investments in common stock, which of the following affects the inventor's investment income?
A.undervalue asset amortization related to purchase
B.cash dividends from investee
undervalue asset amortization related to purchase.
低估資產攤銷影響投資賬戶和投資收益賬戶，而現金股利影響投資賬戶但不影響投資收益賬戶。
[undervalued asset amortization]
equity revenue(I/S)
investment acct(B/S)
[for cash dividend]
cash(B/S)
investment acct(B/S)
26
which of the following should be in the introductory section of a local government's annual comprehensive financial report?
Letter of transmittal
the introductory section of a local government's annual comprehensive financial report would include a letter of transmittal along with an organization chart and list of principal officers.
地方政府年度綜合財務報告的介紹部分將包括一份送文函以及組織結構圖和主要官員名單。
27
working capital turnover
sales/ average working capital
28
working capital
current assets - current liabilities
29
the incremental cost of obtaining the contract with L that will be recognized as an asset is?
E company enters into a contract with L company to install a new general ledger system and provide IT services for the ledger system for five years.
E company incurs commission costs of $ 25 to obtain the contract.
the design cost of $40 are incurred to modify the system according to L's special requests.
$10 is spent on printed materials, which includes $5 for the original printing of ledger handbooks and $5 for a reprint of ledger handbooks due to errors in the first printing.
25.
the design cost $40 and the printing cost of $10 shoulf be expensed as cost of sales related to the contract.
30
in which situation should the U.S company not consolidate its financial statement with the non-U.S. company?
the government of the foreign country has recently imposed a number of severe sanctions and controls on all companies that are majority-owned by U.S companies
外國政府最近對美國公司擁有多數股權的所有公司實施了一系列嚴厲的製裁和控制
31
on Oct1, year 1, P Co. purchase 200 of the $1,000 FV, 10% bonds of O, Inc. for $220,000/ including accrued interest of $5,000. the bonds, which mature on Jan1, year8, pay interest semiannually on Jan1 and July1. P used the strate-line method of amortization under U.S GAAP and appropriately recorded the bonds as a long-term investment. on P's Dec31, year2 balance sheet, the bond should be reported at:
212,000
purchase price,including interest 220,000
less accrued interest. -5,000
215,000
S/L amortization of bond preimium. 15,000*15/75=3,000
32
total current asset
❶cash+ A/R+prepaid tax
②tax =( revenue - expense ) × tax rate
33
which of the following line items will NOT impact the computation of net program expense classified by function on the government-wide statement of activities?
A. capital grants and contributions
B. operating grants and contributions
C. franchise taxes
D. charges for services
Franchise fees are dispalyed after computation of net program(expenses) revenues for all programs by function.
34
Town billed $2,000 for its annual property tax levy in year 1 and anticipates that it will collect $1,500 during the fiscal year and within sixty days of year-end. the city anticipates that it will collect all but $100 of the remaining amounts due during the following 300days of year 2.
deferred outflows?
deferred inflows?
property tax receivable 2,000
allowance 100
deferred inflows 400
property tax revenue 1500
35
City had a property tax levy that totaled $3,000. the city anticipates that it will collect $2,500 in taxes before the end of the year and $3,000 within 60days of year-end. 5% of the levy is deemed to be uncollectible. how much would the city likely record as deferred outflows associated with this transaction?
[0]
property tax receivable. 3,000
tax revenue 2,800
deferred inflows. 50
allowance 150
36
on the first day of each month, N receives from K an escrow deposit of $2,500 for real estate taxes. B records the $2,500 in an escrow acct. K year2 real estate tax is $28,000, payable in equal installments on the first day of each calendar quarter. on Dec31, year1, the balance in the escrow acct was $3,000. On Sep30, year2, what amount should B show as an escrow liability to K?
4,500
beg. 3,000
+deposit =2,500×9months=22,500
-payments(28,000×3/4）=21,000
end balance 4,500
37
consolidated balance sheet retained earnings?
the parent company account
38
cash received from grants and subsidies to decrease operating deficits should be classified in which cash flow?
noncapital financing
1.proceeds or payments related to borrowing nor attributable to the acquisition, constrction or improvement of capital asset.
2. related to grants or susidies to capital purpose
3. property taxes not designed for capital purposes.
4.paid to other funs(other than for interfund services)
39
which of the following is an example of a transaction involving a market participant?
A.a company purchases real estate zoned for recreational use.
B.a company purchases a commercial rental property that is owned by the same shareholders.
C. a company sells land to a local government to satisfy an outstanding tax lien.
D. a judge orders a company to sell machinery during a bankruptcy proceeding.
[A]
market partipanr are buyers and seller acting in their economic best interest who are independend(not related parties), who are knowledgable about an asset or liability, and are willing and able to transact for that asset or liability.
40
general and administrative expenses?
1.interest
2.advertising
NO-NO
interest expense is classified as a separate line item on the income statement.
advertising is classified as a selling expense
41
under US GAAP, restorations of carrying value for long-lived assets are permitted if an asset's fair value increases subsequent to recording an impairment loss for which of the following?
1. held for use
2. held for disposal
2.
42
fund accounting is used by governmental units with resources that must be
A. incorporated into combined or combining financial statements
B.segregated physically according to various objectives.
C.composed of cash or cash equivalents.
D. segregated for the purpose of carrying on specific activities or attaining certain objectives.
[D]
基金會計由政府單位使用，其資源必須
A. 納入合併或合併財務報表
B.根據各種目標進行物理隔離。
C.由現金或現金等價物組成。
D. 為進行特定活動或達到特定目標而進行隔離。
43
in order for a financial instrument to be a derivate for accounting purposes, the financial instrument must
1. have one or more underlying
2. require an initial net investment
[1]
current accounting standards define derivatives for acccounting purpose as having one or more underlyings(and one or more notional amounts), and as NOT requiring an initial net investment(or having an initial net investment that is smaller than woulf be required for other types of similar contracts)
44
A owns equipment originally purchased 4 years ago for $325. on Jan1, year 5 A sells the equipment to B for $208.
the remaining useful life of six years, a CV of $195, FV of $202. B has agreed to lease the equipment back for 3years with annual payments of $48 at an implicit interest rate of 5.25%. the lease qualifies as a sale.
when the transfer takes place, A will record a financial liability equal to :
[6]
cash 208
A/D-equip. 130
equip. 325
financial liability 6. =sales price-FV
gain on equipment sale. 7=FV-CV
45
W took advantage of market conditions to refund debt. this was the fifth refunding operation carried out by W within the last 4years/ the excess of the carrying amount of the old debt over the amount paid to extinguish should be reported as
A.deferred credit to be amortized over the life of new debt
B. part of continuing operations
C. separate item, net of income taxes
D. a reduction of interest expense for the year.
[B]
many companies and agencies extinguish long-term debt prior to maturity as a method of managing financial risk. the gain will be included as part of continuing operations.
許多公司和機構在到期前將長期債務清償，作為管理財務風險的一種方法。 收益將作為持續經營的一部分。
46
the asset management system must include:
1. summary of condition assessments
2. an inventory of asset
3. amount necessary to maintain and preserve the condition of the assets.
4. estimated net realizable value of community infrastructure
1,2,3
47
appropriated $45 for the fiscal year ended Sep30, Y1
paid $15 for miscellaneous supplies in Nov Y0.
issued a $30 PO to a sole source vendor for supplies in Dec Y0.
by Aug Y1, the country had received $20 related to the order but did not pay the vendor until Oct.
on Sep30,Y1, available appropriation=
[0]
available appropriation=
appropriation
-expended (paid for supplies)
-accrue expense
-budgetary control(purchase order-order received)
48
B had $10,000 in supplies on hand.
during Y1, B purchased $2,000 worth of supplies.
at the end of Y1, B has $8,000 in supplies on hand.
how would the purchase of the supplies be recorded under the purchase method and consumption method?
Purchase method: DR:_______$2,000
Consumption Method:DR:_______$2,000
Purchase method
DR:expenditures 2,000
CR:vouchers payable 2,000
at year end:
Dr:inventory of supplies 8,000
Cr: nonspendable fund balance-inventory 8,000
Comsumption method
DR:inventory of supplies 2,000
CR:vouchers payable 2,000
at year end:
Dr:expenditures 8,000
Cr: inventory of supplies 8,000
49
R/E appropriated for plant expansion 32,500
correction of understated depreciation exp. from the prior period 9,300
unrealized loss on AFS. 8,100
unrealized gain on foreign currency translation 3,400
net income 86,500
effective income tax rate 30%
・comprehensive income?
Net income $86,500
Unrealized loss on AFS debt security, net of tax [8,100 × (1 – 0.30)] (5,670)
Unrealized gain on foreign currency translation [3,400 × (1 – 0.30)] 2,380
Comprehensive income $83,210
50
financial information is required to an NFP organization
statement of financial position
statement of activity
statement of cash flows
disclosure functional expense
51
three basic financial statements for NFP
statement of financial position
statement of activity
statement of cash flows
52
N university received $4000 in tuition revenue for the year ended Dec31, Y1. in addition to the tuition received, the university offered $500 in scholarship but had to refund $200 for canceled classes.
for the year ended Dec 31, Y1, N would record gross revenue for the tuition of:
4300
gross revenue should includes scholarship
53
net patient service revenue?
gross patient service revenue(at hospital billing rates) 500
charity care (excluded from gross patient service revenue) 100
bad debt provision 20
contractual adjustments(difference between established billing rates and fees negotiated with third-party payors) 50
net patient service revenue=500-50=450
bde is exp
charity care is not reported as net patient service revenue.
54
net patient service revenue?
gross patient fees for all services provided at usual and customary rates 5000
contractual allowances for third-party payments 800
bad debt is written after an assessment of the patient's ability to pay 350
current year provision for bad debt 300
charity care 1300
net patient service revenue=5000-800-1300=2900
55
On December 31, year1, a $1,200 note payable was included in C liability balances. the note is date Oct 1, year 1, bears interest at 15%, and is payable in three equal annual payments of $400. the first interest and principal payment was made on Oct 1, year 2. in its Dec 31, year 2 balance sheet, what amount should C report as accrued interest payable for this note?
[30]
note payable=1,200-400=800
annual interest=800*15%=120
adjustment factor for 3 mos. =120*3/12=30
56
which of the following transactions is an expenditure of a governmental unit's general fund?
A.operating subsidy transfer from the general fund to an enterprise fund.
B.routine employer contributions from the general fund to a pension trust fund.
C.contribution of enterprise fund capital by the general fund.
D.transfer from the general fund to a capital projects fund.
[B]
routine employer contributions by the general fund to the pension trust fund would be accounted for as an expenditure in the general fund.
57
sales 250
purchase discounts 3
recovery of accounts written off 10
in its single-step income statement, what amount should be reported as total revenues?
250
the single-step income statement will include in total revenues all sales of goods, services, and rentals. purchase discounts are not included in revenue, but instead reduce the cost of goods sold. the recovery of accounts written off does not hit the revenue account.
58
each of the following statements describes a reason to establish an enterprise fund except for:
A.the activity of the fund is financed by debt secured by a pledge of fee revenue.
B. goods and services are provided by designated departments on a cost reimbursement, or fee basis, to other departments and agencies with a single governmental unit.
C. laws require the collocation of fees adequate to recover costs.
D. pricing policies are established to produce fees to recover costs.
[B]
this statement is a reason to establish an internal service fund and is not a reason to establish an enterprise fund.
c.the existence of laws requiring collection of fees adequate to recover costs is a reason to establish an enterprise fund.存在要求收取足以收回成本的費用的法律是設立企業基金的一個理由。
59
G purchased equipment from M on July 1. Gole paid M $10,000 cash and signed a $100,000 noninterest-bearing note payable, due in three years. G recorded a $24,868 discount on notes payable related to this transaction. what is the acquired cost of the equipment on July 1?
[85,132]
DR: equipment
DR: discount on notes payable. 24,868
CR: notes payable. 100,000
CR: cash. 10,000
60
a 20-year property lease, classified as an operating lease, provides for a 10% increase in annual payments every 5 years. in the sixth year compared with the fifth year, the lease will cause the following expenses to increase:
lease
interest
NO-NO
Rule: the lessee shall record an operating lease as lease expense using the straight-line basis. even though is a variable payment, the payment is known at commencement of the lease term; therefore, the variable payments will be used in calculation of the present value of the lease liability. there is no separately recorded interest component for an operating lease.
規則：承租人應當以直線法將經營租賃計入租賃費用。 即使是可變付款，該付款在租賃期開始時是已知的； 因此，可變付款將用於計算租賃負債的現值。 經營租賃沒有單獨記錄的利息部分。
61
which of the following adjustments is necessary to convert cash receipts to revenues as reported on an accrual basis?
A. subtract beginning contract liability from cash receipts from customers
B. subtract ending contract liability from cash receipts from customers.
C. subtract ending accounts receivable from cash receipts from customers.
D. add beginning accounts receivable to cash receipts from customers.
[b]
add ending accounts receivable.
subtract beginning a/r
subtract ending unearned revenue.
add beginning unearned revenue.
選項A，contract liability=unearned revenue，所以應該時加上而不是減去
62
all of the following accurately describe a derivative instrument, except:
A. Most derivative instruments are measured at fair value.
B there may be no required initial net investment.
C. it is a financial instrument that derives value from some other instrument.
D. the terms require or permit net settlement.
[A]
all measured at FV
63
during the fourth quarter of the fiscal year, a firm sells a production machine with a book value of $300 for $275.assuming that the firm uses the direct method how will this transaction be reflected on its statement of cash flows?
investing cash inflow of $275.
[inderect method]
operating cash inflow of $25; investing cash flow of $275
64
Q signed a lease from C on July 1,Y1, for equipment having a 5-year useful life. the lease does not include any option to purchase the equipment at the end of the 4-year lease term, nor does it include a provision for ownership transfer. five equal payments of $10,000 per year are required by the terms of the lease, with the first payment due upon signing. Q's incremental borrowing rate is 8%, but its implicit interest rate is unknown.
present value of an annuity at 8% for 5year=3.993
present value of an annuity at 8% for 4 years =3.312
equipment?
accumulated depreciation?
lease payable?
equipment 43,120
accumulated depreciation 5,390
lease payable 33,120
lease payble=annual payment*PV%
equipment=lease payment + down payment
total accumulate depreciation=equipment@PV/4=10,780
six mon.=5,390
65
for year 1, P estimated its two-year equipment warranty costs based on $100 per unit sold in year 1 . experience during year 2 indicated that the estimate should have been based on $110 per unit, the effect of this $10 difference from the estimate is reported:
as a correction of an error requiring the Y1 financial statement to be restated.
B. as an accounting change requiring the Y1 financial statement to be restated.
C. in Y2, as income from continuing operations.
D. as an accounting change, net of tax, below Y2 income from continuing operations.
[C]
RULE:
changes in estimates affect only the current and subsequent periods(not prior periods and not retained earnings)
D is wrong. an accounting change of principle is shown net of tax on the retained earnings statement.
66
On Jan 1, Y1, W granted stock options of 20,000 shares at $48. (par value $20)
W calculated the total compensation cost of $240,000.
the quoted market price of CS
Jan 1, Y 1 $45
Dec28,Y1 $60
as a result of the grant and exercise of the stock options and the issuance of the common stock, APIC increased by:
[800]
on Jan
DR: compensation expense 240,000
CR: APIC-stock options
on Dec
DR: cash 960,000=20,000*48(stock option price)
DR:APIC-stock options 240,000
CR:CS 400,000=20,000*20(par)
CR:APIC 800,000
跟市場價格沒有關係！
67
a local government recorded revenues as follows:
personal income tax,$200,000
property taxes $150,000
sale taxes $100,000
total tax revenue?
[300]
$150k in property taxes is an imposed non-exchange revenue, imposed non-exchange revenues represent taxes imposed on non-exchange transactions or wealth(property taxes)
財產稅是徵收的非交換收入，徵收的非交換收入代表對非交換交易或財富徵收的稅（財產稅）
68
N owns 100% of T and W. T purchases inventory from W at 140% of W's cost. during Y1, merchandise that cost W $ 40 was sold to T. T sold all of this to customers for $81.2.
what amount was unadjusted revenue overstated in the combined income statement for Y1?
56
69
other comprehensive income on the balance sheet?
amortized cost 150,00
present value of expected payments(interest + principal) 142,000
FV 144,000
[0]
①amortzed cost-PV=8,000
②amortized cost -FV=6,000
①>②so 0.
70
operating lease-lessee
The lease payments to be paid by Lessee to the Lessor will be ($30,000) every six months for the duration of the lease, with payments to be made on June 30 and December 31 each year. The payments will be based on an annual interest rate of 4.35%.
At lease inception on January 1, Year 1?
PV of an annuity of $1 at 4.35% for 4 periods 3.60015
PV of an annuity of $1 at 2.175% for 8 periods 7.27053
PV of $1 at 4.35% for 4 periods 0.84339
PV of $1 at 2.175% for 8 periods 0.84187
dr: ROU asset 218,116
cr: lease liability 218,116
71
operating lease-lessee
The payments will be based on an annual interest rate of 4.35%.
dr: ROU asset 218,116
cr: lease liability 218,116
record the first lease payment made on June 30, Year 1?
dr: lease expense 30,000
cr: cash 30,000
dr: lease liability 25,256
amortization-ROU asset 25,256
72
operating lease-lessee
determine interest paid over the life of the lease?
The lease payments to be paid by Lessee to the Lessor will be ($30,000) every six months for the duration of the lease, with payments to be made on June 30 and December 31 each year. The payments will be based on an annual interest rate of 4.35%.
PV of an annuity of $1 at 4.35% for 4 periods 3.60015
PV of an annuity of $1 at 2.175% for 8 periods 7.27053
PV of $1 at 4.35% for 4 periods 0.84339
PV of $1 at 2.175% for 8 periods 0.84187
21884
73
the deferred tax asset is deemed more likely than not. NOT to be realized.
A. Increase financial statement tax expense
B. Decrease valuation allowance
[A]
Identification of a deferred tax asset for which all or a part of the asset will not be realized will result in the creation of a valuation account, decreasing the asset and increasing financial statement income tax expense.
識別無法實現全部或部分資產的遞延所得稅資產將導致創建估值賬戶，減少資產並增加財務報表所得稅費用。
74
the deferred tax asset will reverse; however the company anticipates no taxable income for the foreseeable future.
A. Increase financial statement tax expense
B. Decrease valuation allowance
[A]
A deferred tax asset will only be realized if there will be future taxable income to which to apply a tax benefit. The absence of future earnings will cause the company to create a valuation allowance and thereby increase financial statement tax expense.
遞延所得稅資產只有在未來有應納稅所得額適用稅收優惠的情況下才能實現。 沒有未來收益將導致公司創建估值津貼，從而增加財務報表稅費。
75
income projections are more positive than previous estimate and the value allowance associated with a deferred tax asset is adjusted.
A. Increase financial statement tax expense
B. Decrease valuation allowance
[B]
The potential that a deferred tax asset, previously allowed for, no longer requires a valuation allowance will cause the company to reverse the valuation allowance, thereby restoring the asset and decreasing financial statement tax expense.
以前允許的遞延所得稅資產不再需要估值備抵的可能性將導致公司撤銷估值備抵，從而恢復資產並減少財務報表稅費。
76
a lessee had a 10-year finance lease requiring equal payments. the prediction of the lease liability in year 2 should equal:
A. the current liability shown for the lease at the end of year 2
B. the reduction of the lease obligation in year 1.
C. the current liability shown for the lease at the end of year 1.
D. one-tenth of the original lease liability.
[C]
finance lease should be recorded as both an asset and liability at the present value of minimum lease payments. the asset is depreciated. the liability is amortized using the interest method. each payment is allocated between principal and interest. the liability is reduced by the amount of principal reduction. the lease liability should be segregated between current and non-current. accordingly, the reduction in lease liability each year is equal to the current liability at the end of the previous year.
77
checkbook balance on Dec 31 was 10,000.
4,000 check payable to R, postdated Jan3, and not included in the Dec 31 checkbook, in collection of a sale made in Dec.
1,000 check payable to R, deposited Dec 15 and included in the Dec 31 checkbook balance, but returned by the bank on Dec 30 stamped NSF. the check was redeposited on Jan 2, and cleared on Jan9.
9,000=10,000-1,000
4,000 is postdated, so it is correctly excluded from the checkbook.
78
a company-issued bond with detachable CS warrants. the issue price exceeded the sum of the warrant's fair value and the face value of the bonds. the FV of the bonds cannot be determined. what value, should be assigned to the warrants?
A. the proportion of the proceeds that the wattant's fair value bears to the face value of the bond.
B. the fair value of the warrants.
[B]
Because the warrants are detachable, the issue price of the bonds and warrants together should be allocated based on each component's fair value on the issuance date. because the warrant'S fair value is known, the remainder of the issuance price not allocated to the warrants is allocated to the bonds.
由於認股權證是可分離的，債券和認股權證的發行價格應根據各組成部分在發行日的公允價值進行分配。 由於認股權證的公允價值已知，未分配給認股權證的剩餘發行價格將分配給債券。
79
what information should a public company present about revenues from its reporting segments?
A. disclose separately the amount of sales to unaffiliated customers and the amount of intracompany sales.
B. disclose as a combined amount sales to unaffiliated customers and intracompany sales between geographic areas.
C. disclose separately the amount of sales to unaffiliated customers but not the amount of intracompany sales between geographic areas.
[A]
80
the country has acquired equipment through a lease contract that transfers ownership that is dated Dec 31, Y0. this agreement required no downpayment and the following minimum ease payments are:
principle 50
interest 15
total 65
if the lease payments are required to be made from a debt service fund, what account or accounts should be debited in the debt service fund for the December 31, Y1, lease payment of $65?
dr: expenditures control 65
cr: cash 65
all expenditures from every operating fund are debited to an account called expenditure control/
81
compared to the accrual basis of accounting, the cash basis of accounting understates income by the net decrease during the accounting period of:
accounting receivable
accrued expenses
NO-YES
82
total additions in the pension plan's statement of changes in net assets available for benefits?
dividends and interest received 92
contribution received from employers and employees 340
administrative expenses 45.4
investments purchased 155
increase in fair value of investments at year-end 36.75
468.75=92+340+36.75
the administrative expenses and the investments purchased represent subtractions from the net assets available.
83
inventory #1. inventory#2
210 400. original cost
150 370. replacement cost
240 410 NRV
208 405 NRV-profit margins
what amount should include in inventory if it uses the total of the inventory to apply the lower of cast or market?
[610]
total inventory
original cost 610
replacement 520
NRC. 650
NRV-profit margin 613
market=613
but market>original cost
so the inventory will be reported at cost=610
84
what amount should report CS?
issued 10,000 of 15par CS for 20 per share.
bought back 2,000 for 16 with the cost method
and resold 1,000 shares at 22 per share.
150share of CS
buy back and resold should record as PS
85
which of the following is true regarding the disclosure of other comprehensive income?
A. a description of what the company considers to be items of comprehensive income is presented in the summary of significant accounting policies.
B. changes in the accumulated balances by a component may be shown on the financial statements or in the notes to the financial statements.
[B.]
A is incorrect because items of comprehensive income are not at the discretion of management and are not part of the summary of accounting policies.
86
which of the following is required part of a local government's management's discussion and analysis as part of its financial statements?
A. the MD&A should present condensed financial information from the fund financial statements.
B. the MD&A should be presented with other required supplementary information.
C. the MD&A should include an analysis for each fund.
D. the MD&A should compare the current year to the prior year with emphasis on the current year.
[D]
87
Loan 2 is an 8%, $1,000,000 loan with interest due annually on December 31. Drake did not record or pay the required Year 2 interest payment until January 1, Year 3. Prepare the journal entry Drake should record at December 31, Year 2
Journey entry
dr: interest expense 80,000
cr: accrued interest payable 80,000
88
January 1, Year 2 $130,000
April 1, Year 2 $240,000
October 1, Year 2 $200,000
January 15, Year 3. $350,000
In addition:
* Borrowed $300,000 at 12% on January 1, Year 2, under a construction note
* Had bonds outstanding of $100,000 at 10%, on January 1, Year 2; interest is payable annually on December 31
* Had notes payable outstanding of $300,000 at 7% on January 1, Year 2; interest is payable annually on December 31
* Completed construction on the building, which was ready for immediate use on March 1, Year 3
?weight average accumulated expenditures for Y2
?the interest incurred for all borrowing for Y2
?the avoidable interest for Y2
?the interest expensefor Y2
360,000
67,000
40,650建築借款是300,000剩下的60,000應該由100000和300000的借款分擔。60,000的1/4再乘以利率，應該是36000+1500+3150=40650
26,350
89
community C receives general contributions allocated through its usual and customary allocations process. the allocations committee grants funding to a local NFP Animal Shelter.
for C
for Animal Shelter
for C: support- contributions
for Animal Shelter-no entry or recognition required
Community Chest, Inc. records contributions while potentially benefiting not-for-profit organizations record nothing. A recipient granted variance power (e.g., the Community Chest's receipts that are allocated using the customary process) records contributions while those organizations without specific rights to contributions would not record anything.
Community Chest, Inc. 記錄捐款，而可能受益的非營利組織沒有記錄任何內容。 被授予差異權力的接受者（例如，使用習慣流程分配的公益金收據）記錄捐款，而沒有特定捐款權利的組織不會記錄任何內容。
90
a donor specifies that their donations to the community C are intended for the NFP Animal Shelter
for C
for A
for C: refundable advance
for A: support-contributions
Community Chest, Inc. records a liability (a refundable advance) while the Animal Shelter (the specifically benefiting not-for-profit) would record revenue. The Community Chest is effectively acting as an agent for the Animal Shelter.
Community Chest, Inc. 記錄負債（可退還的預付款），而動物收容所（特別受益的非營利組織）將記錄收入。 公益金實際上是動物收容所的代理人。
91
an annuity contract administered by the community chest on behalf of the NFP Animal Shelter increase in value.
for A
for C
for C: refundable advance
for A: support-contributions
The Community Chest would likely record a refundable advance while the Animal Shelter would record contribution revenue. Although there is no specific technical guidance on how the recipient/ manager of pools of assets should treat changes in valuation, the lack of variance power appropriately indicates recognition of a liability (refundable advance) while the beneficiary recognizes the change in value as a contribution.
92
a donor promises to make a contribution to the NFP Animal Shelter through the C contingent upon the Animal Shelter's location and purchase of larger facilities.
for A
for C
for A: no entry
for C: no entry
Conditional promises are not recognized. No entry would be made by either the recipient (Community Chest, Inc.) or the beneficiary (Animal Shelter).
93
A university established a foundation to assist in fund raising appeals. The foundation is expected to transfer funds to the university upon request and is considered financially interrelated with the university.
the foundation's net worth increases.
for foundation
for university
for foundation: support contributions
for university: change in interest in recipient net assets.
Changes in the value of assets held by financially interrelated organizations are treated as a change in interest in recipient net assets on the beneficiary's records and contributions on the recipient's books assuming the beneficiary established the recipient for its own benefit and distribution of resources by the recipient, while not required, is expected. The Foundation would record contributions while the university would recognize their share of the increase in the Foundation's net assets on their statement of activities.
財務相關組織持有的資產價值的變化被視為受益人記錄中的受款人淨資產和受款人賬簿上的捐款的利益變化，假設受益人為自己的利益和受助人分配資源而建立了受助人， 雖然不是必需的，但可以預期。 基金會將記錄捐款，而大學將在其活動報表中確認他們在基金會淨資產增加中所佔的份額。
94
D has several natural gas containment systems that must be disposed of in four years at an estimated cost of $200,000. the company plans to book an asset retirement obligation using straight-line depreciation and a 7% accretion rate. after 4 years, the combination of cumulative accretion and accumulated depreciation will be close to:
accretion 47,421
depreciation 152,579
①at the end of 4 years, accretion+depreciation=200,000
②depreciation =PV of 200,000
PV ×interest = future value 200,000 →200,000/1.3108=152,579
③accretion=200,000- depreciation
95
net fair value =
fair value - disposal cost
96
the account should record depreciation(amortization)expense for the lease ?
看到此題應該怎麼做
第一步，判斷lease是finance還是operating。
如果是operating，就不需要deoreciation
97
good faith deposits are recorded as ?
refundable advance(liability)
98
L is lerror on a 10-year(120months) operating lease on ware house space at $1,500 per month. L is offering the lessee the first four months free and the next eight months after that at half off (750 per mont), with the remaining 9 year at the full monthly rate. after the first year of the lease, L will have booked a cumulative balance in rent receivable of:
each month of lease= (750*8+1500*108)/120=1400
the journal entry of each of the first fou months:
dr: rent receivabe 1,400
cr: rental income 1,400
the jornal entry of each of the next eight monts is:
dr:cash 750
dr: rental income 650
cr: rental income 1,400
99
on July 1, Y1, P sold $500,000, 10% tens year bonds at 103. on July 5 , Y1 S wholly owned subsidiary, ourchased half of P bonds at 101. what amoutn of gain(loss) related to this transaction should P recognize on its consolidated income statement at Dec 31, Y1?
[5000gain]
dr:bonds payable 250,000
dr: bond premium 7,500
cr: investment in bonds 252,500
cr: gain on extinguishment 5,000
100
business type activities change in net position=
proprity change in net position-internal service fund change in net position
101
governmental activities(government-wide change in net position)=
net chage in fund balance
.
less:other financing sources(debt proceeds)
.
plus:expenditures
(+capital outlay,
+principal payment=debt service - interest payment
-depreciation expense)
.
plus:service internal fund net income
102
the city displays a change in propriety fund net position of $450 and excess revenue over expenditures for all governmental funds of $250. the governmental fund financial statements or subsidiary records displayed a capital outlay of $500, proceeds from debt services of $350, principal payments on debt of $450, and depreciation expense on governmental assets of $75. the government maintained an internal service fund whose purpose fund had an increase in net position of $15. based on these transactions, the change in net position displayed on the government-wide statement of net position for the indicated categories would be
governmental activities
business-type activities.
governmental activities:385
business-type activities:435
103
the general fund application of the modified accrual basis accounting to receivables associated with these revenues includes
when should accrual?
1. derived tax revenue
2. imposed nin-exchange revenues
1. accrual when receipt
2. accrual when billed
104
what amount should the city report net position associated with governmental activities in its government-wide financial statements ?
・total fund balance 500
・capital asset used in city operations 600
・accumulated depreciation 250
・infrastructure(roads, bridges, etc.) 1500
・accumulated depreciation 850
・bonds payable used to finance capital assets used in city operations 450
・road and bridge bonds payable 350
50=500+600-250-450-350
105
T or F ?
the construction in progress account generally has a higher balance when the percentage of completion method is used.
F
106
1.gains and losses from foreign currency transactions and foreign currency remeasurement
3.gains and losses from foreign currency translations
1. income statement
2. other comprehensive income
107
a credit translation adjustment(not remeasurement) of $30 for the year end. additionally, on Dec 31Y1 , this receivable for 200 local currency units was correctly included in balance sheet at 110. then the receivable was collected on Feb15, Y2 ,the dollar equivalent was 120.in Y2 consolidated income statement, how much should be reported as a foreign currency gain/loss?
[10]
30not remeasurement should report in other comprehensive income
2.remeasurement =120-110=10gain.
108
T or F?
a finance lease is a form of off-balance sheet financing which transfers substantially all of the benefits and risks of ownership of property to the lessee.
[F]
a finance lease is a form of off-balance sheet financing which transfers substantially all of the benefits and risks of ownership of property to the lessee.
this statement is incorrect because a finance lease is not a form of off-balance sheet financing as the lessee is required to report both an asset and a liability on its books when finance lease accounting is used.
因為在使用融資租賃會計時，承租人必須在其賬簿上報告資產和負債。
109
Dec 31 Y1 R notified the church that he had remembered the church in his will with an unrestricted bequest and provided a copy of the will to the church. R dies in Y3 and probated court validated the will in Y4. the executor estimates the distribution will be 500. church would report the transaction in the indicated years:
Y1:
Y3:
Y4:
Y1:0
Y3:0
Y4:500
捐款收入在保證收款並且基本滿足條件（如果有）時確認/
church would recognize contribution revenue upon ratification of the will by the probate court.
110
b company is preparing a statement of CF. which should be shown on the statement ?
A. stock dividend
B. stock split
C. appropriation of RE
D. none of the answer choices are correct
[D]
111
has debt of 900,000 and accrued interest of 40,500.
A trouble debt restructuring allows to settle the note in exchange for FV of 730,000 and CV of 740,000. for the restricting portion alone, the company should book a
A.gain of 210,500
B.loss of 210,500
[A]
dr:notes payable 900,000
dr: interest payable 40,500
dr: loss on building 10,000
cr: buildings 740,000
cr: gain on restructuring 210,500
112
2020 income -100,000
2021 income 50,000
tax rate 21%
what amount of income tax benefit will the company record in 2020 assuming that it is more likely than not that will be no taxable earnings?
[8,400]
because the NOL is limited to 80% of taxable income in 2021.
DTA valuation allowance = (100,000-40,000)×21%=12,600
dr: deferred tax asset 21,000
cr: income tax benefit 8,400
valuation allowance 12,600
113
Dec 31 Y1 R notified the church that he had remembered the church in his will with an unrestricted bequest and provided a copy of the will to the church. R dies in Y3 and probated court validated the will in Y4. the executor estimates the distribution will be 500. church has not secured the property. church would report the transaction in the indicated years:
Y1:
Y3:
Y4:
Y1:0
Y3:0
Y4:0
沒有確保財產
在滿足所有相關條件之前，有條件的給予承諾不確認為收入。
114
town recorded more appropriation than estimated revenues for the coming fiscal year. journal entry ?
dr: estimated revenue control固定
dr: budgetary control移動
cr: appropriation control固定
115
all the transactions are material, which of the them will most likely have no effect on current year net income?
A. the sale of a factory building that was contributed by a shareholder in the prior year.
B. the settlement of litigation over an accident which occurred in the prior year but for which a loss had not previously been considered to be probable and reasonably estimable.
C. the determination that certain junk bonds purchased on a speculative basis several years previous were worthless.
D. the collection of a receivable from a customer whose account was written off in the prior year by a charge to the allowance for deb debts account.
[D]
A. 出售上一年度股東出資的廠房。
B. 就前一年發生的事故的訴訟和解，但此前並未認為該事故的損失是可能的和合理估計的。
C. 確定幾年前以投機方式購買的某些垃圾債券毫無價值。
D. 向客戶收取的應收款項，該客戶的帳戶在上一年核銷，計入債務準備帳戶。
dr:a/r
cr: allowance
dr: cash
cr: a/r
the net of the two horns entries is cash and allowance. there is nothing here that could potentially affect income.
116
accumulated 110,000 in gains.on Y2 liquidated 65% of the cumulative appreciation of the endowment. on Y3 the endowment earned 30,000
asset released from restrictions =
earnings+ liquidated gains
117
the company has a $40 gain on the fair value hedge transaction as well as a 15 loss on the hedged item, what is the impact on the company's Y1 financial statement?
25 net gain recognized in net earnings.
118
none of the entities that benefit from the foundation's activities have an agreement regarding the distribution of foundation earnings.
should record an interest in the net assets of the foundation as
[0]
如果受益組織之間沒有就基金會資源分配達成任何協議或捐贈者的規定，任何實體都不會在其財務報表中包括因捐贈而產生的淨資產權益。
119
trading securities
cost 67
12/31/Y1 59
9/30/Y2 70
[12]
因爲是trading securities，所以每年都會將價格變動反應到income statement，不像AFS一樣有unrealized gain/loss，所以賣出時應該記錄為
dr: cash 71
cr: TS 59
realized gain 12
120
unmatured long-term indebtedness should be reported as debt in
1.government-wide financial statements
2.governmental fund liabilities
long-term debt in government-wide financial statements rather than as governmental fund liabilities
121
P issued 10,000 shares of its $10 par value CS for all the outstanding 20,000 shares of S 's $5 par value stock. P's shares were traded at $30 oer share on the acquisition date. in addition, P paid $10,000 for the finder's fee to comsumate the acquisition.FV of S is 240,000.
what amount should P recorded as goodwill?
[60]
10,000*30=300,000
goodwill =300,000- 240,000=60,000
122
On July 1 Y1, H purchases 3,000 shares of A's 10,000 outstanding shares of CS for $20 per share. on Dec 15, Y1, A paid $40,000 in dividends to its commen stock holders. A's net income for the year ended Dec 31.was 120,000/ warned evenly throughout the year.
what amount of income from this investment should H report?
[18,000]
股份3成，所以用equity法。但是因爲購入時間是7月1 日，所以要將收入減半
123
which of the following statements is most inaccurate in regard to variable interest entities (VIE)?
A. the parties who own the majority of voting rights may not exercise significant power over VIE.
B. A continuous reassessment is required to assess a VIE's primary beneficiary for consolidation purposes.
C. A significant amount of power to direct the VIE's economic activities likely lead to consolidation.
D. A VIE tends to be self-supportive regardless of its relatively thin equity capitalization,
[D]
hallmark: a VIE classification is that the entity itself is not self-supporting
it requires the financial support of an investment company in order to fund its activities.
124
T or F?
an HTM security can be reported as either a current or a non-current liability.
F.
it can be reported as either a current or a non-current [asset].
125
T or F ?
to classify an investment as HTM, the company must have either the intent or the ability to hole the security until maturity.
F.
MUST have both the intend AND the ability to hold the security until maturity.
126
comprehensive income?
foreign currency translation gain 150
unrealized loss on trading security -35
net income 650
loss on discounted operations -75
effective tax rate is 40%. what amount should report as comprehensive income for the year ended Dec 31?
740=650+90
90=150*0.6
foreign currency translation gain (net of tax)!!!
127
CS: 50,000 shares of $10 par
PS: 20,000shares of $15 par, fully participating 10% cumulative preferred stock.
the cash dividend of $100,000
what amount will be the total payment to preferred shareholders?
[37500]
when a company has fully participating preferred stock, excess dividend between the common and preferred shareholder on a pro-rata basis. the excess dividends are those remaining after both preferred and common shareholders receive dividend payments based on the preferred dividend percentage.
當一家公司擁有完全參與的優先股時，普通股和優先股股東之間按比例分配的超額股息。 超額股息是優先股和普通股股東根據優先股股息百分比收到股息後剩餘的股息。
100,000-30,000-50,000(CS)=20,000
PS share of excess divideds:3/8*20,000=7,500
CS share of excess divideds:5/8*20,000=12,500
CS=30,000+7,500=37,500
128
bond payable 47 at12/31 Y2 and 50 on 12/31 Y3. during Y3m issued 20 bonds payable in exchange for equipment.
what amount should report in Y3 statement of cash flows for the redemption of bonds payable?
47+20+?=50
?=17
129
when comparative financial statements are not presented, the cumulative effect of a change in accounting principle equals______
if comparative financial statements are presented, then the cumulative effect is____
when comparative financial statements are not presented, the cumulative effect of a change in accounting principle equals the difference between retained earnings at the beginning of the period of the change and what retained earnings would have been
if the change was applied to all affected prior periods. if comparative financial statements are presented, then the cumulative effect is calculated at the beginning of the earliest period presented.
如果未列報比較財務報表，會計原則變更的累積影響等於變更期初留存收益與將變更應用於所有受影響的前期期間的留存收益之間的差額。 如果列報比較財務報表，則在列報的最早期間的期初計算累積影響。
130
dilutive 判断方法
BEPS=2.97
There are 6,500 shares of convertible preferred stock paying a dividend of $2 per share. Each share is convertible into 0.5 shares of common stock.
①basic earning pershare
②converting into stock will increase net income= ? × 利率× 税金以外収入
③will create new shares of CS
④=②/③
⑤比較①・④。④＞① undilutive
131
Diluted EPS=
Diluted EPS=(net income- PS payment + bond payment)/weight CS shares
132
adjustment to reconcile net income to net cash provided by operating activities:
1.
2.
3.
4.
調整以調節淨收入與經營活動提供的淨現金：
1.minority interest in net income of subsidiary
2.depreciation
3.impairment of goodwill
4.gain on sale of equipment
1、子公司淨利潤中的少數股東權益
2.折舊
3.商譽減值
4.設備銷售收益
133
change in current asset and liabilities
1.
2.
3.
4.
5.
1.decrease in a/r
2.increase in inventories
3.increase in a/p and accrued liabilities
4.increase in deferred income taxes
5.decrease in allowance to reduce marketable debt securities
134
cash flow from investing activities
1.
2.
1. proceed from sales of equipments
2.capital expenditure for equipment
135
CF from financing activities
1.
2.
3.
4.
1. proceed from sale of TS
2.cash dividend paid by parent company
3. cash dividend paid to minority shareholder of subsidiary
4. principle payment on note payable
136
minority interest in net income of subsidiary=
minority interest in net income of subsidiary= subsidiary income× 非持有股份比例%
137
record gain on sale of equipment on operating CF
cash outflow
138
Decrease allowance to reduce marketable debt securities to market on operating CF
cash outflow
139
deferred inflows associated with unavailable property tax revenues were $35,000.
should record in government wide financial statement as:
add :accrued revenues that do not provide current financial resources
與無法獲得的財產稅收入相關的遞延流入為 35,000 美元。
獲得的收入不提供當前財務資源
140
proceed from sale of public lands were 125,000
gain on sale of park property 50,000
should record in government wide financial statement as:
[book value of land -75,000]
.
Proceeds from sale of land (special item) ($125,000)
Gain on disposal of land 50,000
Net book value
($75,000)
141
an NFP institution of higher learning conducts clinical trials for pharmaceutical companies and receives payment from the pharmaceutical company to compensate for the value of the trials.
recognition?
classification?是否有限制
Exchange Revenue | Without Donor Restrictions
NFP 高等院校為製藥公司進行臨床試驗，並從製藥公司獲得報酬以補償試驗的價值。
142
community C receives land and a buidling from a corporate sponsor to be used in furtherance of the mission of community C. under C policies, time restrictions on gifts of long-lived assets are not implied.
Contribution | Without Donor Restrictions
捐贈用於符合組織使命的資產（包括長期資產）被確認為捐贈，如果沒有隱含的時間限制，捐贈被分類為不受捐贈者限制。
143
City D donates electrical service to the Exeter Foundation at no charge.
Contribution | With Donor Restrictions
144
A develops and maintains a list of law firms that provide pro bono services, FLS promotes the availability of the service but leaves client acceptance and terms of service to the individual attorneys.
No Recognition | No Classification
A 制定並維護提供無償服務的律師事務所名單，FLS 促進服務的可用性，但將客戶接受和服務條款留給個別律師。
FLS 充當連接捐助者和需要服務的人的中介。 免費法律服務不是對 FLS 的貢獻，也不會得到認可。
145
in year 1, what amount should report as loss from discontinued operations?
Y2 operating loss would be $500,000 and the fair value of facilities was $300,000 less than their carrying amounts.
Y1 operating loss was 1400,000 and the division was actually sold for $400 less than its carrying amount in Y2.
tax rate30%
[1190,000]
impairment loss +operating loss would be recognized in Y1 net of tax.
146
approbated 45, in general fund for miscellaneous supplies for its fiscal year ended Sep 30, Y2.
paid 15 for miscellaneous sullies in Nov Y1 .
issue a 30 purchase order to a sole source vendor for miscellaneous supplies in Dec Y1.
By Aug Y2, received 20 related to the order but did not pay the vendor until Oct. appropriations do not lapse. that entry would make at year-end to close its books on Sep 30, Y2?
adopt budget 時候的相反記賬
所以應該是
debit appropriations control for 45,000
147
1.financially interrelated should report in ____interest
2.NOT financially interrelated should report in ____interest
1.equity
2.beneficial
148
250 in renovations to locker rooms
180 for new assistant golf professionals
220 for upgrades to pro shop inventory
65 for upscale linens and restaurant supplies
35 for staff dedicated to membership development
55 for promotional and fund raising brochures
Q:
program service?
support survice?
program service245
support service 90
149
goodwill 沒提及用何種方法計算
acquire 80%of S CS for 600.
S asset850
liability 205
goodwill?
FV of S = purchase price/ rate of acquired
然後在對比
150
on July 1 Y1 R purchased equipment at a cost of 360, with a 6 year life with not residual value and was depreciated by the straight-line method, on Jan 3 Y4, determined that its value had been permanently impaired, and that 70 could be recovered over the remaining useful life of the equipment.
what carrying amount should report on Dec 31, Y4?
[50]
70/3.5=20
50=70-20
151
Q: non-controlling interest?
P acquired 80% of S' CS for 600.
S asset850, liability 205
S net income 75
S cash dividend 20
[161]
750=600/0.8
150=750×0.2
150
+15(75×0.2）
-4（20×0.2）
=161
152
what amount of shipping cost should be included in year-end inventory valuation?
purchase during the year 12
shipping cost from overseas 1.5
shipping cost to export customers 1
inventory at year end 3
COGS 9
3/12=0.25
1.5×0.25=0.38
153
Y4 cash payments for purchase?
Y3 Y4
sales 1250. 1320
COGS. 860. 940
inventory. 280. 271
A/P. 86. 113
A/R. 124. 109
[904]
904=940-9-27
receivable is not cash payments for purchase, DO NOT count here!
154
government-wide financial statement.
governmental funds 1200
fixed asset 4000
accumulated depreciation 2750
long term debt 2000
in addition, the government has a sales tax levy of 4% that is routinely collected by the state by the 30th of the month following the month od reported sale revenue and remitted by the state to the benefiting jurisdictions within 45 days of collection.
Oct 3,000
Nov 4,000
Dec 5,000
[650]
650=1200+4000-2750-2000+200
留意此處不是government financial而是government- wide，換言之會使用企業會計方式：accrual accounting，所以12月份的收入應該計算在內
December revenue are received by the city 75 days after year end and therefore would not be accrued for modified accrual accounting since earnings are not available. however, these revenues would be recognized under accrual accounting since the earnings process is complete.
155
incurred reattach and development cost of $136,000 in its patent was granted on July1. Costs of registering the patent equaled $34,000. the patent's legal life is 17 years, and its estimated economic life is 10 year. in Dec 31, what amount should J report as paten, net of accumulated amortization ?
1700=34,000×10×6/12
156
outstanding 2,000 shares of 11% PS, 50par . on Aug 8, redeemed and retired 25% of these shares for 22,500. on that date, APIC from PS totaled 30,000. to record this transaction,
PS:
APIC:
RE:
PS:debit 25,000
APIC: credit 2,500
RE:0
book of redemption=25,000+7,500
redemption=(25,000)+X=(22,500)
X=2,500
1.少於發行價，所以APIC應該是gain
157
DTA 85
determined that os more likely than not 50 of DTA will not be realized in the future.
journal entry:
dr: DTA 85
cr: income tax expense and increases
158
asset retirement obligation of 162,120
asset retirement obligation is expected to paid at the end of ten years. the entity used straight-line depreciation and an accretion of 8%. what is the total Y 1 expense related to the asset retirement obligation?
[29,182]
Dr: asset retirement cost 162,120
Cr: asset retirement obligation 162,120
depreciation expense:162,120/10=16,212
Y1 accretion expense=162,120×8%=12,970
total ARO expense = 16,212+12970=29182
159
the FASB' due process for setting accounting standards includes which of the following procedures?
A.the FASB delegates topics to the financial accounting foundation for research and reporting .
B. the FASB' emerging issues task force ratifies amendments to the accounting standard codification.
C. the FASB can seek information about accounting and reporting issued by holding public forums, usually base on an exposure draft.
D. the FASB obtains approval from the international accounting standards board in setting its agenda.
[C]
FASB 制定會計準則的正當程序包括以下哪些程序？
A. FASB 將主題委託給財務會計基金會進行研究和報告。
B. FASB 的新興問題工作組批准了對會計準則編纂的修訂。
C. FASB 可以通過公開論壇獲取有關會計和報告的信息，通常基於徵求意見稿。
D. FASB 在製定議程時獲得國際會計準則委員會的批准。
提出 FASB 對會計準則編纂的修訂以徵求意見稿的形式發布以徵求公眾意見。 在評論期結束時，FASR 將分析所有評論信和立場文件。 當 FASB 的董事會成員對所有合理的替代方案都已考慮後感到滿意時，FASB 將準備更新會計準則以供董事會批准。
160
which of the following will not have a separate earnings per share calculation and disclosure ?
1. extraordinary items of the period
2. discontinued operations
3. unrealized gains/losses on available for sale securities.
1,3
161
a subsidiary located in Mexico, for which it used the reanimation /current rate method in its consolidation process. which of the following statement is true?
1. sales in Mexico pesos would be translated into US dollars at the year end exchange rate.
2. any translation gain or loss would be reported in other comprehensive income.
[2]
all income statement items are translated at the weighted-average exchange rate for the period under the translation method.
162
Community chest has the ultimate authority to predict gifts to area that it deems most appropriate. during the year, community chest received a $200,000 donation that named the Seaside Aquarium as the beneficiary. as a result of this transaction, Seaside Aquarium would record:
[0]
不會記錄他們對來自社區公益金的分配，因為社區公益金對其捐贈者授予擁有最終權。
163
at Dec 31 Y2, O changed its method of accounting for demo costs from writing off the cost over two years to expensing the costs immediately. O made the change in recognition of an increasing number of demos placed with customer that did not result in sales. P had deferred demo costs of $500 at Dec 31 Y1, $300 of which were to be written off in Y 2 and the remainder in Y3. O income tax rate is 30%.
in Y3 financial statement, what amount should O report as cumulative effect of change in accounting principle?
[0]
a change in method of accounting for demo costs is a change in accounting principle inseparable from a change in estimate. when a change in accounting principle is considered inseparable from a change in estimate, the change is handles as a change in estimate-protectively. no cumulative effect adjustment is made.
164
cash flow hedge recognized in __
fair value hedge recognized in __
cash flow hedge recognized in OCI
fair value hedge recognized in net income
165
NFP organization received a $500 donation of securities from U with the stipulation that donation would be kept intact but that earnings from the principal could be used for the museum's art acquisition program.
$50 in contributions without donor restrictions to duns operations.
$30 in dividend
FV of the donation $525
purchase local treasures for display in the museum called at $38
without donor restrictions?
with donor restrictions?
without donor restrictions 50
with donor restrictions 517
166
consolidated financial retain earning
統一為母公司RE
167
CS par $10. issued and outstanding 180,000
APIC 232,000
RE 192,000
total stockholder's equity. 604,000
On Mar 31, Y5 A declared a 10% stock dividend, and according 1,800 additional shares were issued, when the fair market value was $16 per share. for the three months ended Mar 31 Y5, A sustained a net loss of $64,000/ the balance of A retained earnings as of Mar 31 Y5 is :
[99,200]
192,000
-small stock dividend （分小股按市價，分大鼓按成本價）
-28，800
- net loss -64,000
=99,200
168
the company enter in to a 4 years $800 service contract on Jan 1 with the entire contract paid up front by the customer. the company initially debited cash and credited unearned revenue for this amount. No other entries were made during the year.
Dec 31 Journal entry
dr: unearned revenue 200
cr: revenue 200
169
cash flow from operations prepared using the direct method
1.the company' depreciation expense increased $50,000 over the previous year.
No effect
Depreciation is an expense that does not require any outlay of cash.
1.Depreciation expense for a given year is added to net income under the indirect method.
2.Under the direct method, the amount itself (and the change from one year to the next) is not a component of cash flow from operating activities.
170
cash flow from operations prepared using the direct method
1.the company' depreciation
payments of income taxes previously deferred due to tax versus financial depreciation differences.
decrease
Taxes paid, whether current or deferred, are a cash flow from operations (CFO) outflow under the direct method.
171
cash flow from operations prepared using the direct method
1.a portion of outstanding debt issuances are called in at a price above par.
No effect
This is a cash flow from financing (CFF) outflow, regardless of whether the call price is above, below, or at par.
172
reconciliation on balance per books
prepaid expense check
add back to cash balance
173
the fund most likely used by a municipality undertaking the construction of a utility plant finance by revenue bonds.
capital project
市政當局最有可能使用的基金，該基金通過收益債券進行公用設施建設融資。
Capital projects funds are set up to account for resources used for the acquisition or construction of major capital assets by a governmental unit, except those financed by proprietary or fiduciary funds.
資本項目基金是為記錄政府單位用於購置或建設重大資本資產的資源而設立的，但由專有或信託基金資助的資源除外。
174
the fund most likely used by the Clerk of the Court to account for alimony payments in accordance with court orders related to divorce decrees. Alimony deposits are remitted to benefitting parties net of a fee.
what type of fund?
custodial
根據與離婚法令相關的法院命令，法院書記員最有可能用於支付贍養費的資金。 贍養費押金扣除費用後匯給受益方。
Custodial trust funds account for resources in the temporary custody of a governmental unit. Fees are accounted for as a liability to another fund.
託管信託基金佔政府單位臨時託管的資源。 費用作為對另一基金的負債入賬。
175
percentage of completion method
Sale price $2,800,000
Estimated costs 1,600,000
Costs incurred to date (paid in cash) 400,000
Billed to date 250,000
Received in cash to date 190,000
【record cost incurred 】
【record billings on contract】
【record payments received】
【record revenue/loss during construction period】
【record cost incurred 】
dr: construction in progress 400
cr: cash 400
【record billings on contract】
dr: contrasts receivable 250
cr:progress billing 250
【record payments received】
dr: cash 190
cr: contracts receivable 190
【record revenue/loss during construction period】
dr: construction expense 400
dr: construction 300
cr: revenue 700
176
percentage of completion method
completed contract method
difference?
Y3
Sale price $2,800,000
Estimated costs 2,000,000
Costs incurred to date (paid in cash) 2,000,000
Billed to date 2,800,000
Received in cash to date 2,800,000
completed contract method 未完成之前不用紀錄【record revenue/loss during construction period】
完成之後
dr: progress billings 2,800,000
cr: revenue 2,800,000
dr: construction expense 2,000,000
cr: construction in progress 2,000,000
177
return on sales
income before interest income, interest expense and taxes
_____________________
sale (net)
178
Accounts receivable turnover
Net sales
_______
Average AR
179
Days sales in accounts receivable
Ending accounts receivable (net)/
Sales (net) / 365
180
Inventory turnover
Cost of goods sold/
Average inventory
181
Days in inventory
Ending inventory/
Cost of goods sold / 365
182
Reportable segment "size" test threshold:
1.an individual segment (combining internal and external sales)
2.have at least 10% of the total sales of the entire entity
183
Reportable segment "reporting sufficiency" test threshold:
1.all reportable segments (looking at external sales only)
2.have at least 75% of the total external sales of the entire entity.
184
Haste Waste Inc. operates a 4-acre landfill that needs to be capped and closed in 5 years on January 1, Year 6. The total future cost of this activity is estimated to be $710,000. The relevant accretion rate is 6% and the asset will be depreciated straight-line over the 5 year period. Please enter your answers to the following questions in the associated cells.
this ARO using a present value factor of .74726
accumulated depreciation?
net asset retirement cost?
asset retirement obligation?
Accumulated Depreciation: 106,111 (530,555 / 5)
Net Asset Retirement Cost: 424,444 (530,555 – 106,111)
ARO: 562,388 (530,555 + 31,833)
185
Haste Waste Inc. operates a 4-acre landfill that needs to be capped and closed in 5 years on January 1, Year 6. The total future cost of this activity is estimated to be $710,000. The relevant accretion rate is 6% and the asset will be depreciated straight-line over the 5 year period. Please enter your answers to the following questions in the associated cells.
this ARO using a present value factor of .74726
total accretion expense?
Y1 accretion expense?
total accretion expense179,445
Y1 accretion expense31,833
186
A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care provider persuades the benefactor to give $200,000 to help the provider persuade the bus line that the benefactor is serious.
JE?
NO NEED
No entry is required when a conditional promise is received. There is no asset, no liability and certainly no revenue or related net asset recognition. Accounts such as “conditional pledge receivable” or “conditional revenue” are never used.
187
A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care provider persuades the benefactor to give $200,000 to help the provider persuade the bus line that the benefactor is serious.
JE?
dr: cash 200k
cr: refundable advance 200k
The day care provider records an asset, cash, and a liability called a refundable advance. No net asset classification is impacted. Classification of cash accounts should be consistent with the refundable advance classification to ensure no impact on any net asset classification.
188
A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The bus company agrees to move the bus route to include the address of the new day care center.
JE?
dr: refundable advance 200,000
dr: pledge receivable with donor restrictions 300,000
cr: revenue with donor restrictions 500,000
The satisfaction of the condition makes the $200,000 refundable advance with donor restrictions revenue (funds are restricted to build the day care center). The remaining $300,000 of the promise is also eligible for recognition (because it is no longer conditional) as a pledge receivable and revenue—with donor restrictions.
189
A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care center collects the remaining $300,000 pledge receivable.
dr: cash with donor restrictions 300,000
cr: pledge receivable with donor restrictions 300,000
190
A benefactor promises the day care provider it will contribute $500,000 toward the construction of a new day care center contingent upon redirecting the bus routes to include the address of the new location.
The day care provider expends $150,000 on the construction of the new day care center.
dr: satisfaction of use restriction 150,000
cr: cash with donor restrictions 150,000
dr: cash without donor restrictions 150,000
cr: satisfaction of use restriction 150,000
dr: construction in progress 150,000
cr: cash without donor restrictions 150,000
Use of the cash with donor restrictions for construction of the day care center required by the bequest causes the assets with donor restrictions to be released from restriction and reclassified to assets without donor restriction. (The first two lines of the entry remove the cash from "Cash—with donor restrictions"; the next two lines record the cash in "Cash—without donor restrictions.") Use of the resources on the day care is recorded as construction in progress (not capital outlay expenditure) and a reduction of unrestricted cash received after its release from restriction (the final two lines of the entry).
191
Property, plant, and equipment: adequate information?
The accumulated depreciation amount should be presented separately, reducing the historical cost of the equipment to net book value.
192
on Jan 8 Y2, a NFP elected to sell the securities for $110 and begin construction on a dormitories.
how would display cash floes from the securities?
investing activities of 110,000
193
1. cash contribution of $200 to be used at the discretion of the foundation.
2. accounting services contributed valued at 30 and would other wide have been purchase.
3. cash contribution of 100 to be used for youth education.
4. pledge of 80 in Y3 by a long time faithful supporter.
without donor restriction?
with donor restriction?
without donor restriction230
with donor restriction180
194
Mrs.Grey gave $200 to be used to build an expansion to the museum.
which cash flow?
financing activities.
with restricted on the building = financing
195
cash received from a contributor as a good faith advance on a promise to contribute matching fund.
cash flows from operating
196
dividend income earned on equity securities
cash flows from operating
197
NFP that seeks to provide diapers to community families in need.
1.purchase diapers from big box store15,000
2.delivery costs to local families 2000
3. salary of CEO 20,000
4. printing of materials asking for contributions 3,000
5. CPA audit needed for bank loan
program expenses?
support expenses?
program expenses17,000
support expenses27,000
198
collected 45 in day care fees from families during the year
collected 30 from the U provide on going funding for child develop program
10 from the F school to defray the cost of meals service to child.
without donor restrictions?
revenue+ support=45+40+85
199
A lessor and lessee (both under U.S. GAAP, with fiscal years ending December 31) enter into a 6-year lease for several pieces of equipment with an economic life of 8 years. The lease begins on January 1, Year 1 and payments are made at the end of the year (with the first payment made on December 31, Year 1). The lessee will pay $96,000 per year, and there is a guaranteed residual amount of $35,000. The present value of the lease payments is $472,061 and the present value of the guaranteed residual is $24,675. The fair value of the equipment is equal to the present value of the lease payments (including the guaranteed residual), and there is no ownership transfer or written purchase option on the lease. The rate implicit in the lease is 6% (which is known to the lessee) and the incremental borrowing rate for the lessee is 7%. The lease qualifies as a finance lease and the lessor will treat the lease as a direct financing lease.
Factors:
PV of $1 at 6% for 6 years = 0.7050
PV of $1 at 7% for 6 years = 0.6663
PV of $1 annuity at 6% for 6 years = 4.9173
PV of $1 annuity at 7% for 6 years = 4.7665
1.lessee's initial journal entry.
2.Interest revenue to be received by the lessor over the life of the lease.
3. Initial journal entry for the lessor.
1.
dr: ROU asset $496,736
cr: lease liability $496,736
2.114,264
3.
dr: lease receivable 472,061
dr: residual asset 24,675
cr: equipment 496,736
200
remeasurement method
1.begins with the balance sheet
2.monetary items @current exchange rate ,
_cash
_A/R
_A/P
_long term debt
3. nonmonetary items @historical rate
_depreciation expense
_marketable securities
_PP&E
_accumulated depreciation
_CS
_PS
4.Retained earnings are a plug number to get the balance sheet to balance.
201
translation method
1.income statement first
2.balance sheet:CS &PS @historical rate
other@current rate
3. income statement @weighted average exchange rate
202
monetary items@ current rate
_cash
_A/R
_A/P
_long term debt
203
nonmonetary items @historical rate
_depreciation expense
_marketable securities
_PP&E
_accumulated depreciation
_CS
_PS
204
change in accounting principle
Retrospective application
205
Riggs uses U.S. GAAP and does not present comparative financial statements.
R sells extended service contracts on its products. because related services are performed over several years, in Y2 R changed from the cash method to the accrual method of recognizing income from these service contracts.
【Correction of an error in previously presented financial statements】
【Restatement approach】
When comparative financial statements are not issued (as in this case), a correction of an error requires restatement of the retained earnings from the prior period end by adjusting (net of tax) the opening balance of the current retained earnings statement.
當不發布比較財務報表時（如在本例中），更正錯誤需要通過調整（稅後）當前留存收益表的期初餘額來重述上期末的留存收益。
206
Riggs uses U.S. GAAP and does not present comparative financial statements.
during Y2 R determined that an insurance premium paid and entirely expensed in Y1 was for the period Jan 1 Y1 through Jan 1 Y3.
【Correction of an error in previously presented financial statements 】【Restatement approach】
The change of the accounting practice of expensing insurance premiums when paid rather than allocating them to the periods benefited is a correction of an error in previously presented financial statements.
更正以前呈報的財務報表中的錯誤| 重述方法
保險費在支付時支出而不是分配到受益期間的會計慣例的變化是對先前財務報表中的錯誤的更正。
207
at what value should a nongovernmental NFP organization record shares of stock when received?
@ FV on the date of donation
marketable securities are marked to market(adjusted to fair value) at the balance sheet date; however, the securities would have been initially recorded at fair value at the time of donation.
208
which of the following information is needed to prepare the budgetary comparison schedules for a local government?
A.Explanation of variances
B.description of the local government's budgeting process.
C.original budget.
D.computation of variances from budget to actual.
[C]
the original budget is needed to prepare the budgetary comparison schedules for a local government. budgetary comparison schedules must show the original budget, the financial amended budget, and actual amounts. Variance computations and process descriptions are optional.
209
property tax receipts to subsidies operations 150
special assessment receipts to defray the cost of improved wastewater infrastructure 50
operating transfers out (125)
noncapital financing activities?
capital and related financing activities?
noncapital financing activities 25
capital and related financing activities 50
210
F road property owners in S country are responsible for special assessment debt that arose from a storm sewer project. if the property owners default, S has no obligation regarding debt service, although it does bill property owners for assessments and uses the monies it collects to pay debt holders. what fund type should S use to account for these collection and servicing activities?
A.debt services
B. capital projects
C.private purpose funds
D.custodial
D.
the debt service transactions of a special assessment issue for which the government is not obligated in any manner should be reported in a custodial fund, rather than a debt service fund, to reflect the fact the government's duties are limited to collecting and remitting funds without administrative involvement for the assessed property owners and bondholders.
