FAR⑧ Flashcards
the derivative instrument, not designated for hedging purposes→______cash flow?
- investing cash flow
the derivative instrument, not designated for hedging purposes, held for trading purpose→______cash flow
operating cash flow
the derivative instrument, contains a significant financing element at transaction inception→______cash flow
financing cash flow
should [payment of principal on long-term debt] report as expenditure in its governmental statement of revenues, expenditures, and changes in fund balances?
yes
which item of a foreign subsidiary would be valued differently depending on whether financial statements were translated using the translation method or the remeasurement method?
1. depreciation expense
2. sales revenue
3. cash-foreign bank account
4. common stock
[1]
translate method: weighted average rate
measurement method: historical cost
- weighted average rate
- year-end spot rate
- historical method
in the annual comprehensive financial report for a government entity, the satistical section of the report should include selected financial data for the past ___years?
[10]
the first-year amount related to its 9,000,000 construction contract:
1. actual costs incurred and paid 2,000,000
2. estimated cost to complete 6,000,000
3. progress billings 1,800,000
4. cash collected 1,500,000
what amount should recognize as a current liability at year-end, using the percentage-of-completion method?
[0]
首先算出第一年的利潤
9M-8M=1M
0.25×1M=250,000
actual cost incurred and paid
2,000,000
VS
progress billings 1,800,000
+revenue 250,000
=2,050,000
current asset 50,000, no current liability
which the first-year amount related to its 9,000,000 construction contract:
1. actual costs incurred and paid 2,000,000
2. estimated cost to complete 6,000,000
3. progress billings 1,800,000
4. cash collected 1,500,000
what amount should recognize as a current liability at year-end, using the percentage-of-completion method?
[0]
首先算出第一年的利潤
9M-8M=1M
0.25×1M=250,000
the actual cost incurred and paid
2,000,000
VS
progress billings 1,800,000
+revenue 250,000
=2,050,000
current asset 50,000, no current liability
which should be disclosed for each reportable operating segment of an enterprise under USGAAP?
1. profit or loss
2. total assets
1 and 2
debt service fund resources that are subject to the terms and conditions of a bond indenture would be classified within fund balance as:
1. non-spendable
2. assigned
3. committed
4. restricted
[4]
restricted fund balances represent resources whose use has been limited by such external sources as creditors(e.g, debt covenants), contributors, other governments, laws, constitutional provisions, or enabling legislation.
three primary user groups of external financial reports of a state government?
- citizens (neighboring state is not included)
- legislative/oversight groups: advocate groups within the state
- investors/creditor
T owns 16,000 of S’s 20,000 outstanding common shares. the carrying value of S’s equity is $500,000. S subsequently issues an additional 5,000 previously unissued shares for $200,000 to an outside party that is unrelated to either T or S. what is the total noncontrolling interest after the additional shares are issued?
[252,000]
500,000+200,000=700,000
16/25=0.64
noncontrolling=0.36
700,000×0.36=252,000
the debt service fund of a governmental unit is used to account for the accumulation of resources for, and the payment of, principal and interest in connection with a:
fiduciary fund: yes/no
proprietary fund: yes/no
no-no
the debt service fund services general debt. both fiduciary funds and proprietary fund record their own long-term liabilities and service their own debt.
which is not a common modification used to prepare modified cash basis financial statements.
1. recording long-term liabilities
2. recognizing revenues when earned
3. accrual of income tax
4. capitalizing inventory
[2]
if revenues are recognized when earned, rather than when received, then the financial statements are prepared using the accrual basis. recording long-term liabilities, accrual of income taxes, and capitalization of inventory are all common modifications made to cash basis financial statements.
what should disclose about the main customers?
1. the payments terms of accounts receivable due from each of the main customers
2. the amount of the entity’s revenue from each of the main customers
[2]
the discount resulting from the determination of a note payable’s value should be reported on the balance sheet as a:
1. deferred charge separate from the note
2. direct reduction from the face amount of the note
3. addition to the face amount of the note
4. deferred credit separate from the note
[2]
the discount on a note payable should be reported on the balance sheet as a direct reduction from the face amount of the note.
during Y7
1. a cash contribution of 875 to be used at the board of director’s discretion
2. a promise to contribute 500 in Y8 from a supporter who has made similar contributions in prior periods
3. contributed legal services with a value of 100, which would have otherwise purchase
revenue and gains without donor restrictions:
revenue and gains with donor restrictions:
revenue and gains without donor restrictions:975
revenue and gains with donor restrictions:500
2 has a time restriction
the calculation of the capitalized interest amount by an entity for a period is:
1. limited to a maximum of the actual interest costs incurred during the period
2. determined by the amount borrowed during the construction period
[1]
2 is incorrect because capitalized interest is determined by applying the applicable interest rates to the average amount of the accumulated expenditures for the asset during the period, not the amount borrowed.
direct write-off method.
cash collections from customers equal sales adjusted for the addition or deduction of the following amounts:
- accounts written-off(increase or deduct)
- increase in accounts receivable balance(increase or deduct)
deduction-deduction
deducting “accounts receivable written off” and “deducting the “increase in the accounts receivable balance”
tax-exempt organizations that are part of government qualify for discrete presentation in governmental financing reporting in all of the following circumstances except:
1. significance standard
2. affiliation standard
3. benefit standard
4. assess standard
[2]
a government’s discussion and analysis would likely include all of the following features, except:
1. a discussion of significant changes in individual funds and significant budget variances.
2. a comparison of the current year to the prior year based on government-wide information along with other information helpful in assessing the improvement or deterioration of the government’s financial position.
3. a reconciliation of fund financial statements and government-wide financial statements.
4. an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions or conditions.
[3]
should refurbishing costs capitalize or recognized as expenses?
capitalize
L city does not use the modified approach to account for roads. at the beginning of current year, the city spent 800,000 on renew roads. the road have a 2-0year useful life. what amount should L city report as an expense related to the new roads in the statement of activities for the current year?
[20,000]
因為題目中的政府並沒有使用modified approach，所以應該按照正常情況折舊
acquired some of its own common shares at a price greater than both their par value and original issue price but less than their book value. cost method for treasury stock. what is the impact on stockholder’s equity and the book value per common share?
decrease or increase
decrease- increase
acquired CS as TS will decrease the stockholders’ equity
for example:
BV $1,000 and there are 100 common shares, the book value per common share would be $10.
if 10 shares were purchased by $8, the new BV will be 920. and the reduced number of share will be 90. so new book value per share will be 920/90=10.22
consolidated balance sheet.
what was the amount of intercompany sales from P to S?
revenue.
(P+S)-consolidated
which is not revenue?
1. sales revenue
2. results from discontinue operations
3. interest revenue
4. gain on sale of equipment
[2]
the various amount from discontinued operations should be included in discontinued operations, not in revenue.
the statement of activities of the government-wide financial statements is designed primarily to provide information to assess?
1. fiscal accountability
2. operational accountability
3. functional accountability
4. financial accountability
[2]
the focus of government-wide financial statement is the government’s responsibility to report the extent to it has met its operating objectives efficiently and effectively, using all resources available for that purpose, and the extent to which it can continue to meet its objects for the future.
which of the following is not required in the budgetary comparison schedule presented by a state or local government as part of required supplement information?
1. the original budget
2. actual inflow, outflows, and balances stated on a budgetary basis
3. variances between the final budget and actual amounts
4. the final appropriate budget
[3]
optional but not required
on Jan 1, Y1, a company has capitalized software costs of 1,200,000 related to software that is intends to begin selling in Y1. the company estimates that the software has an economic life of four years, and will generate 3,000,000 of sales and leasing revenue revenue over the next four years. in Y1, the company earned 1,000,000 in sales and leasing revenue related to the software. what amount of expense should be recognized from amortizing the software costs for the year ended Dec 31, Y1?
[400,000]
amortization should base on percentage of revenue or the annual straight-line percentage.
revenue: 33.33%
straight-line: 25%
capitalized software costs= 1,200,000×33.3%=400,000
which of the following funds do inter-fund transfers affect the results of operations in their fund financial statements?
1. governmental funds
2. proprietary funds
yes-yes
interfund transfers are recorded as other financing sources users rather than revenues for governmental funds. they are recorded simply as inter fund transfers for proprietary funds. although these transfers are not recorded as revenues or expenditures, they do affect both fund’s expendable resources and, therefore, affect the results of operations for both funds.
which information is needed to prepare the budgetary comparison schedules for a local government?
1. original budget
2.computation of variances from budget to actual
3. description of the local government’s budgeting process
4. explanation of variances
[1]
the original budget is needed to prepare the budgetary comparison schedule for a local government. budgetary comparison schedule must show the original budget, the final amended budget, and actual amounts. variance computations and process descriptions are options.
M purchased a three-month U.S. treasury bill. how should this purchase be reported in the statement of cash flows?
1. not reported
2. as an outflow from financing activities
[1]
U.S. treasury bill美國國庫券= cash equivalent
purchase of treasury bill = financing activities
in preparing government-wide financial statements for a governmental entity, interfund receivable and payable between governmental and enterprise funds should be:
1. reported as internal balances
2. reported as amounts due to and due from other funds
[1]
when government-wide financial statements are prepared for a governmental entity, interfund receivables, and payables that occur between funds categories as governmental activities and funds classified as business-type activities should be reported as internal balances and aligned so that they sum to zero on the financial statements.
