FAR ⑥ Flashcards
which should record the land?
A. country assessment for sewer lines: yes/no
B. title search fees: yes/no
yes-yes
the else for land:
cash paid for land with a building to be demolished;
removal of oldbuiding $21000 les salvage of 5000=16000
the following information pertains to A Co. and its decisions for the year ended Dec 31:
1. sales to unaffiliated customers 2,000,000
2. intersegment sales of products similar to those sold to unaffiliated customers 600,000
3. interest earned to loans to other industry segments 40,000
A and all of its decisions are engaged solely in manufacturing operations. A has a reportable segment if that segment’s revenue exceeds:
「260,000]
RULE: to be significant enough to report on, a segment must be at least 10% of:
1. combined revenued
2. operating income
3. indentifiable assets
F company has purchased a call option at a premium of $3 per share, which gives F the right to buy 1,000 shares of GHA stock at $25 per share. which of the following statements is correct regarding this option position?
if GHA is at $21 per share?
if GHA is at $31 per share?
if GHA is at $21, the only loss when an option is out of money is the premium itself, which in this case is 3,000.
if GHA is at $31, F will have a gain of 3,000
L received $90,000 on Mac 1 Y2 for work to be performed over the next six months, the company, which has a fiscal year end of June 30, records revenue evenly over the period of work performance. in its June 30, Y3, financial statements, L will record:
#JE
on y2 statement :
dr: cash 90,000
cr: deferred revenue 30,000
cr: revenue 60,000
at year-end Y3, L will recognize the remaining two months of revenue:
dr: deferred revenue 30,000
cr: revenue 30,000
change in fund balance 75,000
capital outlay expenditures of 60,000
principal payments on debt of 50,000
interest payments on debt of 30,000
other financing sources associated with proceeds on new debt of 100,000
deferred inflows associated with measurable but unavailable revenue 25,000
show incurred but unpaid interest of $15,000
depreciation expense of 10,000
what would the town report as their change in net position for governmental activities?
[85,000]
+ capital outlay
+ principal payment on debt
- asset disposal adjustment
-sources(debt proceeds)
+ revenue accrual
- interest accrual
- depreciation expense
+ internal service fund change in net position
-cash proceeds from the sale of investment in B 75,000
- dividends received on G stock 10,500
- common stock purchased from B 38,000
what amount should G recognize as net cash from investing activities in its statement of cash flows at Dec 31 under USGAAP?
[37,000]
dividend received on stock is operating cash flow
tax-exempt interest revenue 10,000
tax return -
accounting records 50,000
what amount should report as deferred tax expense in its income statement for the year?
tax-exempt interest revenue is a permanent difference.
receive a donation of 2,000 shares of its par value CS from a stockholder. on that date, the stock’s market value was $35 per share. the stock was originally issued for $25 per share. by that amount would this donation cause total stockholder’s equity to decrease?
[0]
0 decrease in total stockholder’s equity due to donation of its own stock from a stockholder because there is no cost to the corporation.
dr: donated TS stock @FMV
cr: APIC @FMV
a 20-year property lease, classified as an operating lease, provides for a 10% increase in annual payments every five years. in the sixth year compared with the fifth year, the lease will cause the following expenses to increase:
lease: yes/no
interest: yes/no
no-no
the lessee shall record an operating lease as lease expense using a straight-line basis. even though there is a variable payment, the payment is known at the commencement of the lease term; therefore, the variable payments will be used in the calculation of the present value of the lease liability. there is no separately recorded interest component for an operating lease.
Q signed a lease on July 1, Y1 for equipment having a five-year useful life. the lease does not include any option to purchase the equipment at the four-year lease term, nor does it include a precision for owner 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 5 years = 3.993
・present value of the annuity at 8% for 4 years = 3.312
on its Dec 31, Y1 financial statements, Q would display the following amounts in the indicated account under USGAAP:
equipment::
accumulated depreciation
lease payable:
equipment: 43,120
accumulated depreciation: 5,390
lease payable: 33,120
因爲第一筆錢在簽約時已經支付，所以現值只需要算4年。
present value =43,120=33,120+10,000
depreciation period =4year
six month depreciation 5,390
consolidated retained earning
parent retained earning
+ parent net income
- parent dividend
W owned 80% of the outstanding common stock of F. on Dec 31, Y1 F sole equipment to W at a price in excess of F’S carrying amount, but less than its original cost. on a consolidated balance sheet at Dec 31, Y1 the carrying amount of the (cost less accumulated depreciation) equipment should be reported at:
A. W’s original cost
B. W’S original cost less F’S recorded gain
[B]
從題目中可以知道F公司在出售資產的時候有盈利，因爲sale price>carrying price。
因爲兩公司是母公司和子公司，所以公司之間產生的盈利必須消去。
based on the current expected credit loss model, a company records the following journal entry at year-end related to a five-year bond issued by J Corp.
dr: credit loss 23,00
dr: unrealized loss- AFS 9,000
cr: allowance for credit losses of 23,000
cr: valuation allowance 9,000
the security is classified as available-for-sale and has an amortized cost of $250000 and a current fair value of 218,000. based on the journal entry above, the present value of expected future cash flows must be closest to:
[227,000]
although the total difference between amortized cost and fair value is 32,000, the credit loss is equal to the difference between amortized cost and the present value of expected cash flows( interest and principal to be received). if the credit loss is recorded at 23,000, the present value must be equal to 250,000-23,000=227,000. the additional 9,000 difference between the present value and fair value is recorded as an unrealized loss in other comprehensive income.
under the translation method,
- the translation gain or loss adjustment is plugged to?
- Cs and APIC account with all other asset use historical/current/weighted rate?
- liability account translated use historical/current/weighted rate?
1.other comprehensive income
2. historical
3. current
a collection agency spent 50,000 in staff payroll costs investigating the feasibility of developing its own software program for tracking customer contracts. After committing to funding the project, software developers were paid $200,000 to write the code, and the company incurred $70,000 in general and administrative costs related to training and software maintenance. what amount should be capitalized?
[200,000]
any costs incurred during the preliminary project state, as well as costs for training and maintenance, should be expensed. costs incurred after the preliminary project state, once a commitment to the project has been made, can be capitalized.
According to the FASB conceptual framework, the primary users of financial reports include all of the following, except:
A. lenders
B. regulators
C. creditors
D. investors
[B]
A. 貸方
B、監管機構
C、債權人
D、投資者
F checkbook balance on Dec 31, Y1, was $122,400. in addition, imperial held the following items in its safe on Dec 31:
1. a check for $600 from B, Inc., received Dec 30, Y1, which was not included in the checkbook balance.
2. non-sufficient funds check from Star company in the amount of $800 that has been deposited at the bank but was returned for lack of sufficient funds on Dec 29. the check was to be deposited on Jan 3, Y2. the original deposit has been included in the Dec 31 checkbook balance.
3. coin and currency on had amounted to $1,500
the proper amount to be reported on F’s balance sheet for cash at Dec31, Y1 is:
[123,700]
122,400
+600
-800
+1500
=123,700
assume that a company maintains a defined benefit pension plan. the company’s net periodic pension cost for the year would be reported on :
1. the company’s income statement
2. the defined benefit pension plan’s statement of changes in net assets available for benefits.
A. 1 only
B. both
[A]
the company reports the net periodic pension cost on its own income statement and the funded status of the plan(the plan’s assets relative to the plan’s obligations) on its own balance sheet. neither the net periodic pension cost for the year nor the plan’s funded status are reported on any single financial statement prepared for the plan, including the statement of changes in net assets available for benefits.
on July 31, Y1, D Co. issued $1,000,000 of 10%, 15-year bonds at par and( as a typical risk-management strategy to D Co.) used a portion of the proceeds to call its 600 outstanding 11%, $1,000 face value bonds, due on July 31, Y11, at 102. on that date, unamortized bond premium relating to the 11% bonds was $65,000. in its Y1 income statement, what amount should D report as gain or loss from retirement of bonds?
[53,000 gain]
dr: bond payable 600,000
dr: unamortized premium 65,000
cr: cash 612,000
cr: gain 53,000
consolidated financial statement, net income should be:
Parent company net income
the billing for transportation services provided to other government units are recorded by the internal service fund as/
A. operating revenues.
B. intergovernmental transfers.
[A]
dr: due from other funds
cr: operating revenues
On Jan 1, Y1, P Inc. acquired 30% of S Inc.’s outstanding common stock for $400,000. during Y1, S had net income of $100,000 and paid dividends of $30,000. on Jan 1, Y2, P acquired an additional 45% interest on S for 1012,500. the fair value of S on Jan 1, Y2 was $2,250,000. what amount of gain from this transaction will P record in Y2?
A. 254,000
B.0
[A]
當投資者逐漸增加投資直到獲得控股之後，投資的金額必須按照市價從心折現。
FV of 30% interest = 2,250,000×30％=675,000
Y1 investment in S=400k+21k=421,000
原本投資額為421000，但是因為FV調整，所以產生了254000的利益。
which of the following would be reported as an investing activity?
A. collection of a note receivable from a related party
B. a collection of proceeds from a note payable
[A]
B is financing activities
for interim financial reporting, the computation of a company’s second-quarter provision for income taxes used an effective tax rate expected to be applicable for the full fiscal year. the effective tax rate should reflect the anticipated:
foreign tax rates: yes/no
available tax planning alternatives: yes/no
yes-yes
the effective income tax rates for operations for the full year should reflect anticipated foreign tax rates and available tax planning alternatives. in addition, the effect of other anticipated tax credits, capital gains rates, and foreign tax credits should be included.
the city of B entered into a lease for equipment to be used by its police department. the lease is for a period of three years and the city retains ownership of the equipment at the end of the lease. the city would classify this lease as :
A. finance lease
B. contract that transfers ownership
C. sale-type lease
D. short-term lease
[B]
the city of B’s lease is a contract that transfers ownership as defined by governmental accounting standards. a contract the transfers ownership is a contract that conveys ownership of the underlying asset to the lease in a financed purchase.
市政府的租賃裡面沒A，C選項。D因為本租約是3年，已經超過12個月，所以不符合條件
the terms of an option contract purchased bya company are for 1,000 shares of ABC stock at $10 per share and a premium of $2 per share. the company will have a gain if the option is a:
A. call option and ABC is at $8 per share.
B. put option and ABC is at $7 per share.
C. call option and ABC is at $12 per share.
D. put option and ABC is at $13 per share.
[B]
if the option is a put option and the stock price is $7 per share, the option will be in the money by $3 per share. offsetting the premium cost of $2 per share, the net gain will be $1 per share.
C is incorrect. a call option with a strike price of $10 and a stock price of $12 will be in the money, but the $2 premium cost per share will offset the $2 that the option is in the money such that there will be no gain or loss.
J, CPAs provides accounting services for a client at a flat contract rate of $10,000 a month. the terms of the contract included a required payment on the 15th day of each month for the prior month’s accounting services. assuming J, CPAs post journal entries each month end, what is the journal entry made on Dec 31?
dr: cash 10,000
cr: accounts receivable 10,000
dr: accounts receivable 10,000
cr: service revenue 10,000
要有兩次紀錄，首先是收到的現金以及11月份消帳，第二是本月賺到的利益應該紀錄在12月。
On June 30 of the current year, H Corp. issued at 99, one thousand of its 8%, $1,000 bonds. H used USGAAP. the bonds were issued through an underwriter to whom H paid an issuance cost of 35,000. On June 30 of the current year, H reported the bond liability at:
[955,000]
bond liability
= discount/premium on the bond
- issuance costs
雖然在記賬的時候以上兩項是分開的，但是做這種題目是要一起計算
which facts concerning fixed assets should be included in the summary of significant accounting policies?
depreciation method: yes/no
composition: yes/no
yes-no
which line item 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. capital for services
C. franchise taxes
D. operating grants and contributions
[C]
franchise fees are displayed after computation of net program revenues for all programs by function.
cash receipts from grants and subsidies to decrease operating deficits should be classified in which of the following sections of the statement of cash flows for governmental, not-for-profit entities?
A. noncapital financing
B. operating
[A]
cash flow from noncapital financing activities include:
1. proceeds or payments related to borrowing nor attributable to the acquisition, construction or improvement of capital assets.
2. cash receipts or payments related to grants or subsidies not attributable to capital purposes.
3. property taxes not designated for capital purposes.
4. cash paid to other funds(other than for interfund services)
operating cash flows related to receipts and disbursements related to sales of goods and services, interfund reimbursements, etc.
a company that uses the accrual method of accounting started the fiscal year with assets of $600,000 and liabilities of $400,000. during the fiscal year, the company recorded credit sales of $250,000, of which 8,000 remained to be collected at year-end, and incurred expenses of 90,000, of which 72,000 was paid in cash. a stock dividend values at 10,000 was declared and issued to stockholders during the year, what is the year-end balance of total equity?
[360,000]
beginning asset =200,000
+250,000-90,000
=360,000
stock dividend does not result in a reduction to equity, as it simply increases the number of shares outstanding.
