FAR⑧

Question 1

the derivative instrument, not designated for hedging purposes→______cash flow?

Answer 1

1. investing cash flow

Question 2

the derivative instrument, not designated for hedging purposes, held for trading purpose→______cash flow

Answer 2

operating cash flow

Question 3

the derivative instrument, contains a significant financing element at transaction inception→______cash flow

Answer 3

financing cash flow

Question 4

should [payment of principal on long-term debt] report as expenditure in its governmental statement of revenues, expenditures, and changes in fund balances?

Answer 4

yes

Question 5

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

Answer 5

[1]
translate method: weighted average rate
measurement method: historical cost

2. weighted average rate
3. year-end spot rate
4. historical method

Question 6

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?

Answer 6

[10]

Question 7

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?

Answer 7

[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

Question 8

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?

Answer 8

[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

Question 9

which should be disclosed for each reportable operating segment of an enterprise under USGAAP?
1. profit or loss
2. total assets

Answer 9

1 and 2

Question 10

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

Answer 10

[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.

Question 11

three primary user groups of external financial reports of a state government?

Answer 11

1. citizens (neighboring state is not included)
2. legislative/oversight groups: advocate groups within the state
3. investors/creditor

Question 12

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?

Answer 12

[252,000]
500,000+200,000=700,000
16/25=0.64
noncontrolling=0.36
700,000×0.36=252,000

Question 13

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

Answer 13

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.

Question 14

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

Answer 14

[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.

Question 15

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

Answer 15

[2]

Question 16

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

Answer 16

[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.

Question 17

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:

Answer 17

revenue and gains without donor restrictions:975
revenue and gains with donor restrictions:500
2 has a time restriction

Question 18

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

Answer 18

[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.

Question 19

direct write-off method.
cash collections from customers equal sales adjusted for the addition or deduction of the following amounts:

1. accounts written-off(increase or deduct)
2. increase in accounts receivable balance(increase or deduct)

Answer 19

deduction-deduction
deducting “accounts receivable written off” and “deducting the “increase in the accounts receivable balance”

Question 20

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

Answer 20

[2]

Question 21

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.

Answer 21

[3]

Question 22

should refurbishing costs capitalize or recognized as expenses?

Answer 22

capitalize

Question 23

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?

Answer 23

[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

Question 24

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

Answer 24

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

Question 25

consolidated balance sheet. what was the amount of intercompany sales from P to S?

Answer 25

revenue. (P+S)-consolidated

Question 26

which is not revenue? 1. sales revenue 2. results from discontinue operations 3. interest revenue 4. gain on sale of equipment

Answer 26

[2] the various amount from discontinued operations should be included in discontinued operations, not in revenue.

Question 27

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

Answer 27

[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.

Question 28

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

Answer 28

[3] optional but not required

Question 29

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?

Answer 29

[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

Question 30

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

Answer 30

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.

Question 31

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

Answer 31

[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.

Question 32

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

Answer 32

[1] U.S. treasury bill美國國庫券= cash equivalent purchase of treasury bill = financing activities

Question 33

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

Answer 33

[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.

Question 34

N company usually stores its product inventory in a special area within its manufacturing facility. due to a recent fire, all inventory this month was stored off-site at a cost of 3,000. some inventory items are normally purchased from Switzerland. this month's import duty was 2,000. this month's unreimbursable freight charges on products sold were 4,000. given the above three costs, what amount are chargeable to inventory versus chargeable to expense? inventory: expense:

Answer 34

inventory:2,000 expense: 7,000 import duty should be charged to inventory. the other two items are expensed as incurred. the 3,000 warehousing cost is not chargeable to inventory since it is not a usual cost. to ba included in the inventory, a cost must be usual, and necessary, and make the item ready for sale.

Question 35

H company discovered that in the prior year, it failed to report 40,000 of depreciation related to a newly constructed building. the depreciation was computed correctly for tax purposes. the tax rate for the current year was 20%. how should H report the correction of an error in the current year? 1. as an increase in accumulated depreciation of 40,000 2. as in an increase in accumulated depreciation of 32,000

Answer 35

[1] should book at a gross level.

Question 36

conditions are associated with pledges or receipts provided to a not-for-profit organization in the event that there is: 1. measurable performance-related barriers that exist relative to the promise or receipt 2. measurable performance-related barriers or other barries relative to the promise or receipt and a right of return of contributed resources or release of the promisor of any obligation.

Answer 36

[2] conditions are defined as measurable performance-related barriers or other barriers. these barriers are relative to either a promise to give or a donation received that are further associated with the donor's right to require a return of the donation from the recipient or the right to rescind the promise to give. both the barrier and right of return must exist to represent a condition. the existence of conditions relative to donation precludes the recognition of revenue for a not-for-profit organization.

Question 37

on Dec 31, Y2, A products has a patent shown on its balance sheet for 96,000 that has a remaining legal life of 8 years. it is expected that the patent will have no economic value after 6 years. at the beginning of Y3, the company incurs costs of 50,000 which will extent the economic value of the patent for another 5 years. what is the amount of the patent amortization expense for A products during Y3?

Answer 37

[18,250] a patent is amortized over the shorter of its estimated life or remaining useful life. (96,000+50,000)/8=18,250

Question 38

the company had 500 in short-term liabilities at the end of the current year. the company issued 400 of common stock subsequent to the end of the year, but before the financial statements were issued. the proceeds from the stock issued were intended to be used to pay the short-term debt. what amount should the company report as a short-term liability on its balance sheet at the end of the current year?

Answer 38

[100] if equity securities have been issued after the balance sheet date but before the balance sheet is issued, the short-term obligation, although excluded from current liabilities, shall not be included in the owner's equity dr:short-term liability 400 cr: long-term liability 400

Question 39

which statement regarding the lessor's accounting under an operating lease is accurate? 1. a refundable security deposit is booked as a liability until refunded to the lessee. 2. income earn over the life of the lease is part interest and part principle

Answer 39

[1] 2 is incorrect because the lessor will recognize rental income over the life of an operating lease.

Question 40

bonds payable at the beginning of the year =bonds payable at the end of the year +?

Answer 40

principal payments on debt

Question 41

the city received a donation of a painting of one of the founders of the city. the painting will be held for exhibition for two years and then be auctioned to collect proceeds for a new park, which will be named for the founder. how the donation must be accounted for? 1. the painting may be capitalized at the option of the governmental entity. if it is capitalized, the government has the option to depreciate it. 2. the painting must be capitalized

Answer 41

[2] governments should capitalize works of art such as this unless they meet certain criteria( i.e., the artwork is held for public exhibit, the artwork is protected, and policy dictates that the proceeds from any sales of the artwork will be used to acquire other items for collection). in this case, the proceeds were going to be used for a park, which would not meet the criteria.

Question 42

which will count as revenue? 1. home game 2. away game

Answer 42

[1]

Question 43

which of the following accounts may be affected by a noncompensatory stock option/purchase plan provide to eligible employees under USGAAP? 1. APIC-stock option 2. APIC

Answer 43

[2] the only journal entry made under a noncompensatory stock option/purchase plan is when the eligible employee purchases the stock. when the common stock is purchased by an employee at a price above its par value, APIC is credited. 1 would be affected when the compensation cost is recognized for a given period under a compensatory stock option/purchase plan(only) 分清楚是compensation還是non-compensation

Question 44

when should a conditional pledge to a nongovernmental not-for-profit organization be recognized as revenue? 1. when the cash is receive 2. never

Answer 44

[2] only unconditional pledges and receipts are recognized as revenue.

Question 45

which line items will not impact the computation of net program expense classified by function on the government-wide statement of activities? 1. franchise taxes 2. charges for services 3. capital grants and contributions 4. operating grants and contributions

Answer 45

[1] franchise fees are displayed after the computation of net program revenues for all programs by function.

Question 46

which is reported in accumulated other comprehensive income? 1. unrealized foreign exchange transaction gains 2. cumulative foreign exchange translation loss 3. foreign exchange remeasurement gains and losses 4. unrealized losses on trading securities of foreign-based companies

Answer 46

[2] translation -OCI transaction- net income

Question 47

the company started operations on Jan 1, Y1, and has reported profits for its first three years. Y4 operations have resulted in a $100 operating loss for tax purposes. which statements are true?(自由選択） 1. if the company carries back the $100 loss, a deferred tax asset will result 2. if the company carries forward the entire $100 loss, a $100 tax benefit will be shown on its Y4 income statement

Answer 47

none are true. 1 is incorrect because a carryback results in a claim for refund of past taxes, which is shown on the balance sheet as a tax refund receivable, an item separate from deferred taxes. 2 is incorrect because carry forward the tax benefit = carryforward × tax rate

Question 48

which should be reported as a liability in the general fund financial statement? 1. an amount to be paid from current financial resources 2. an amount set aside to pay for an unfilled contract

Answer 48

[1] 2 is incorrect 為未履行的合同預留的金額 is not liability

Question 49

how much would the capital projects fund report as other financing sources for the current year? 1. proceeds from debt issuance 1,000 2. transfer from general fund 500 3. special assessments 400 4. fees for extra services 100

Answer 49

[1500] 3 is revenue.

Question 50

under USCPA, earnings per share data should be reported for:自由選択 1. discontinued operations 2. income from continuing operation

Answer 50

both if the entity reports a discontinued operation, the entity presents the basic and diluted per share amounts for those items either on the face of the income statement or in the notes to the financial statements.

Question 51

equipment original cost 900 accumulate depreciation at Jan 1 Y9 of 420 suffered permanent impairment, as a result, should have a carrying value of only 300, and the remaining useful life is 3 years. what amount should report as accumulated depreciation in Dec 31, Y9 ?

Answer 51

[700] 不但要將折舊就算入内，impairment也不能忘記！

Question 52

reclassification adjustments, and their effect on both net income and other comprehensive income, are reported in the footnote. 點解錯？

Answer 52

不完整。 all reclassification adjustments, including the effect on reported net income and other comprehensive income, must be presented in the statement in which the components of net income and the components of other comprehensive income are present( not the footnotes).所有重分類調整，包括對報告的淨收益和其他綜合收益的影響，必須在包含淨收益和其他綜合收益的報表（不是腳註）中列示。

Question 53

which best describes risk associated with derivative contracts? 1. market risk occurs when a derivate contract changes in value. 2. credit risk is a bigger concern for the party that stands to gain from its position.

Answer 53

[2] credit risk is defined as the risk that the counterparty to a derivative contract will not perform. there is a stronger likelihood that the party that is in the losing position will fail to perform, which means that credit risk is a bigger concern for the party that stands to gain from its position. makket risk is the risk that a party to derivatives contract stands to lose on its position. although a detivative contract will likely change in value, one party will gain and the other party will loss.

Question 53

which best describes risk associated with derivative contracts? 1. market risk occurs when a derivate contract changes in value. 2. credit risk is a bigger concern for the party that stands to gain from its position.

Answer 53

[2] credit risk is defined as the risk that the counterparty to a derivative contract will not perform. there is a stronger likelihood that the party that is in the losing position will fail to perform, which means that credit risk is a bigger concern for the party that stands to gain from its position. market risk is the risk that a party to a derivatives contract stands to lose on its position. although a derivative contract will likely change in value, one party will gain and the other party will lose.

Question 54

city's internal service fund received 50,000 cash from the general fund to capitalize this fund. this should be reported in internal service fund as a credit to: 1. accounts payable 2. transfers 3. contributed capital 4. revenue

Answer 54

[2] non reciprocal transfers are not accounted for as revenue. 非互惠的轉帳不能被記錄為收益。

Question 55

a primary difference between using the direct method versus the indirect method to prepare operating cash flow for the statement of cash flows under USGAAP is: 1. each method includes a different starting point in the calculation 2. the reporting operating cash flow total will be different 3. use of the indirect method requires the company to report the direct method in a separate schedule 4. depreciation and amortization is added back under the direct method but not under the indirect method.

Answer 55

[1] 1 is correct because direct method begins with net sales, there is no reconciliation of non cash items required. indirect method required that all non cash items appearing on the income statement be adjusted to reflect their cash basis. 2 is incorrect because total will be the same 3 is incorrect because direct method must provide a separate schedule show the indirect method calculation. indirect method no need. 4 is incorrect because no adjustment of depreciation and amortization under the direct method.

Question 56

the nongovernmental not-for-profit organization, received an unconditional pledge. the donor stipulated that the pledge must be used in the next fiscal year. what element of statement of financial position will increase as a result of the unconditional pledge ?

Answer 56

pledge receivable. a pledge received by a not-for-profit to be used in a future period would most likely be recored as pledge receivable with donor restrictions and support with donor restrictions.

Question 57

which financial statements may be prepared, but is not required to be prepared for both benefit pension plans and defined contribution pension plans? 1. statements of changes in accumulated plan benefits. 2. statement of cash flows

Answer 57

[2]

Question 58

T or F? applying the enhancing qualitative characteristics is an iterative process that does not follow a prescribed order.

Answer 58

[T] enhancing characteristic are comparability, verifiability, timeliness and understandability. the application of this characteristics is a process that does not follow a specific or prescribed order.

Question 59

a not-for-profit organization received state grants to fund its ongoing programming. grants are annual contracts that are structured as cost reimbursement agreements requiring expenditure of grant funding before revenues are deemed to be earned. assuming the organization expended all grant funds in accordance with the program requirements, would likely record grant revenues as: 1. support(contribution revenue) with our donor restrictions, provided that the center discloses and consistency applies this accounting policy. 2. revenue with donor restrictions and a reclassification that decreased net assets with donor restrictions, and increase net assets without donor restrictions.

Answer 59

[1] donor imposed restrictions that are met in the same period they are receive may be recored as support without donor restrictions.

Question 60

for a trouble debt restructuring involving only a modification of terms, which of the following items specified by the new terms would be compared to the carrying amount of the debt determined if the debtor should report a gain on restructuring? 1. the present value of the debt at the modified interest rate 2. the total future cash payments

Answer 60

[2] carrying amount - total future cash payments = gain

Question 61

which is not a primary disadvantage of using forward contracts? 1. there is limited legibility to design or modify contract terms due to the use of an intermediary 2. there is credit risk associated with a counterparty not performing under the terms of contract 3. forward contracts are unregulated 4. it can be an illiquid derivative instrument

Answer 61

[1] although an intermediary may be used to find and asset the parties in negotiations, forward contracts have flexible terms because they are privately negotiated instruments between two parties without standardized notional amounts or settlement dates.

Question 62

HCDA, a financially independent authority, provides loans to commercial businesses operating in H county. how should HCDA classify the disbursements of loans on the cash flow statement? 1. non-capital financing activities 2. operating activities

Answer 62

[2] government proprietary funds prepare a statement of cash flows in a manner similar to commercial enterprises. the HCDA is in the business of providing loans through a loan program so should be classified as operating activities.

Question 63

consolidating working sheet, unrealized intercompany profit?

Answer 63

inventory

Question 64

AFS→HTM 1. reported on the BS (FV with current/noncurrent, amortized cost, ineligible transaction) 2. impact on the financial statements from gains /losses

Answer 64

1. FV, non-current asset 2. amortized gain or loss from OCI to net income

Question 65

marketable equity securities → impact on the financial statements from gains /losses

Answer 65

unrealized gain/loss goes into net income

Question 66

marketable equity securities　→ HTM 1. reported on the BS (FV with current/noncurrent, amortized cost, ineligible transaction) 2. impact on the financial statements from gains /losses

Answer 66

1. ineligible translation 2. ineligible translation

Question 67

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. #JE

Answer 67

DR Interest expense 80,000* CR Accrued interest payable 80,000 * 80,000 ($1,000,000 loan × 8%)

Question 68

The first one is a pay-fixed, receive-floating interest rate swap transaction we entered into on December 1 of last year. In this transaction, we have locked in our payments at a fixed interest rate in exchange for receiving payments that will fluctuate based on movements in market rates. This was aligned with our December 1 borrowing of $1,000,000 at an annual rate of SOFR + 3%. As of the end of December, we had an unrealized loss of $15,000 on this swap. 1. hedge designation: cash flow hedge/ fair value hedge/foreign currency hedge of a net investment in a foreign operation 2. impact on earnings 3. impact on OCI

Answer 68

1. cash flow hedge 2. 0 3. (15,000)

Question 69

The second transaction relates to a futures contract from March 1 of last year used to hedge the risk of change in the value of our inventory. As of the end of December, we had an unrealized gain of $12,000 on the futures contract and a $12,050 unrealized loss due to a decrease in the fair value of the inventory. 1. hedge designation: cash flow hedge/ fair value hedge/foreign currency hedge of a net investment in a foreign operation 2. impact on earnings 3. impact on OCI

Answer 69

1. fair value hedge 2. (50) 3. 0

Question 70

Finally, as of December 31, we had an unrealized gain on a forward contract of $100,000 and an estimated cumulative translation loss of $99,400 related to our 100% investment in a Japanese company with the yen as its functional currency. We purchased the company and entered into this contract on July 1 of last year to hedge against decreases in the value of our investment. 1. hedge designation: cash flow hedge/ fair value hedge/foreign currency hedge of a net investment in a foreign operation/ foreign currency fair value hedge 2. impact on earnings 3. impact on OCI

Answer 70

1. foreign currency hedge of a net investment in a foreign operation 2. 0 3. 600

Question 71

D country appropriated $45 in its general fund for supplies on Sep 30, Y2. paid $15 for supplies in Nov and issued $30 purchase order to a sole source vendor n Dec Y1. by Aug Y2 the country received $20 related to the order but didi not pay until Oct. what entry would make at year-end on Sep 30, Y2?

Answer 71

debit appropriation control for $45 the country would reverse the full amount of the budget amount of the appropriation, originally recorded as a credit.

Question 72

in recording its budgetary accounts in its governmental funds at the beginning of the fiscal year, a municipal government would: 1. credit appropriations control 2. debit encumbrance control

Answer 72

[1] dr: estimated revenue control cr: appropriations control budgetary control 調節量

Question 73

financially interrelated or not? beneficial interest→ equity interest→

Answer 73

beneficial interest→not financially interrelated equity interest→ financially interrelated

Question 74

deferred tax asset account is $85 a company determined that is more likely than not that $50 of its deferred tax asset will not be realized in the future. 1. increase this period's income tax expense by $50 2. debit [deferred tax valuation allowance] account for $50

Answer 74

[1] dr: income tax expense cr: deferred tax valuation

Question 75

current maturities of the lease at the end of the second year =?

Answer 75

principal payments(book value × stated interest rate) due in the third year

Question 76

purchase 35% outstanding common stock, should report goodwill or not?

Answer 76

yes!

Question 77

the FASB's due process for setting accounting standards includes which of the following procedures? 1. the FASB's emerging issues task force ratifies amendments to the accounting standards condition 2. the FASB obtains approval from the international accounting standards board in setting its agenda 3. the FASb delegates topics to the financial accounting foundation for research and reporting 4. the FASB can seek information about accounting and reporting issues by holding public forums, usually based on an exposure draft

Answer 77

[4] 1 incorrect.ratifies=批准，該小組只負責協助沒有批准的權限 2 不會從國際會計準則委員會尋求議程的批准 3 財務基金委員會FAF負責FASB的managing the oversight監督，administration行政和finance財務.不會負責研究和報告 4 . FASB 可以通過舉辦公共論壇來尋求有關會計和報告問題的信息，通常基於徵求意見稿

Question 78

change in net position C P A S R I DE S

Answer 78

Capital outlay + Principal payments on non-current debt(debt service expenditure- interest payments) + Asset disposal(NBV) - Sources(other financing source-debt proceeds) - Revenue(measurable but unavailable) + Interest expense(accrued) Depreciation expense - Internal Service fund net revenue +

Question 79

SELF標準 S E L F

Answer 79

Separately Elected Legally separate Financially independent The way I think about it is the primary government has the power to levy taxes. The discrete unit is related to the primary government but is a separate legal entity. The blended unit is not a separate legal entity and thus does not have to be shown separately on the financial statements it just “blends in” with the primary gov

Question 80

The allocations committee has the ultimate authority to redirect gifts to areas that it deems most appropriate. the committee received a $200 donation that named S as the beneficiary. as a result of this transaction, S would record? 1. a temporarily restricted contribution of $200 2. $0

Answer 80

[2] the committee has variance power over its receipts as granted by donors.

Question 81

which is not a cost associated with exit and disposal activities? 1. cost to terminate contract that is not a direct finance lease 2. cost associated with the retirement of a fixed asset.

Answer 81

[2] exit and disposal activities include costs to terminate a contract that is not a direct finance lease. direct finance lease termination costs are accounted for separately from exit and disposal activities.

Question 82

which will not have a separate earnings per share calculation and disclosure under USGAP. 自由選択 1. extraordinary items of the period 2. discontinued operations 3. unrealized gains/ losses on AFS securities

Answer 82

1 and 3 1. no longer recognized under USGAAP 2. correct 3. AFS is to OCI not affect net income. so have no earnings per share calculation and disclosures.