FAR ⑨ Flashcards
K corp.’s $95 USGAAP net income for the quarter ended Sep 30, Y1, included the following after-tax items:
1. a $60 gain on the sale of the equipment, realized on April 30,Y1 was allocated equally to the second, third, and fourth quarters fourth quarters of Y1
2. a $16 cumulative-effect loss resulting from a change in inventory valuation method was recognized on Aug 2, Y1.
in addition, L paid $48 on Fec 1, Y1 for Y1 calendar-year property taxes. of this amount, $12 was allocated to the third quarter of Y1.
for the quarter ended Sep 30, Y1, K should report net income of
[91]
稅金不需計所以加12
賣equipment收入應該在一開始計算而不是平分到各季度
a bond issued $10,000 is due in nine months. the market interest rate is 8%, and the interest factor of $1 due in nine months at 8% is 0.944.
at what amount should the note payable be reported in Dec 31 balance sheet?
[10,000]
不超過1年的bond不需要計算現值
an entity, upon initial recognition of an asset retirement obligation, should not take which of the following actions?
1. allocate asset retirement cost to expense over the useful life of the related asset.
2. capitalize the asset retirement cost at its undiscounted cash flow value
3. measure the asset retirement cost at fair value
4. capitalize the asset retirement cost by increasing the carrying amount of the related asset.
[2]
儅存在產報廢義務時，實體應記錄增加長期資產賬面價值的資產報廢成本asset retirement cost(arc)以及資產報廢義務asset retirement obligation(ARO)，兩者作爲報廢時的債務。計入資產和債務的金額將等於（通過discounting the future cash flows確定）資產報廢義務的公允價值。
ARC將在使用壽命内這就相關資產， 而ARO將根據相關增值率“增值”
a bond that has no stated interest rate is issued at discount. how should the note payable be presented in the statement of financial position?
1. at the face amount minus a discount calculated at the imputed interest rate
2. at the face amount with a separate deferred asset for the discount calculated at the imputed interest rate
[1]
注意是在BS上面表示，所以應該減去discount的金額合并顯示。
which leads to the use of fund accounting by a governmental organization? 自由選択
1. financial control
2. legal restrictions
both
基金會計 令 服務和任務的組織能夠輕鬆監控支出目的spending purpose(legal restrictions),支出限制spending limits(budget and financial control),以及其他財政會計對象的遵守情況。
a donation received that was designed as a quasi-endowment
with donor restrictions or not?
without donor restriction.
the endowment is with donor restriction.
carrying amount =
1. purchase price - accumulated depreciation
2. purchase price - salvage value- accumulated depreciation
[1]
in fund financial statements for governmental units, depreciation expense on assets acquired with capital grants externally restricted for capital acquisitions should be reported in which type of fund?自由選擇
1. governmental fund
2. proprietary fund
[2]
depreciation expense is not recorded in the governmental funds
how should a nongovernmental not-for-profit organization report depreciation expense in its statement of activities?
1. it should be included as a decrease in net assets without donor restrictions
2. it should be included as an increase in net asset with donor restrictions
3. it should be reclassified from net assets without donor restrictions to net assets with donor restrictions, depending on donor-imposed restrictions on the assets
[1]
3 is incorrect, assets rarely move to the right to more restricted classifications.
the city had 50,000 of deferred inflows recorded in fund financial statements because of measurable but unavailable property tax revenue recorded at the outset of the fiscal year. to derive its government-wide financial statements, the city would prepare which workpaper entries?
dr: deferred inflows 50,000
cr: tax revenue 50,000
爲什麽DR不用tax receivable？
assets(receivables) have already been recognized for imposed non-exchange transactions such as property tax revenue. no additional receivable accrual is necessary.
a contribution for the construction of a new building
which cash flow?
financing activities: limited use to long-term purpose
which uSGAAP inventory costing method approximates most closely the current cost for each of the following?
1. COGS: FIFO/LIFO
2. ending inventory: FIFO/LIFO
LIFO-FIFO
思考方式，如何將最近購入的貨品用於目標計算。例如用LIFO法最近購入的貨物將用於COGS，用FIFO法年尾的貨物將會是最近購入的
a qualified derivative may be used to hedge exposure to variability in cash flow associated with 【?】 【?】 【?】(but not a firm commitment, which would be a fair value hedge)
合格的衍生工具可用於對沖與?, ?, ?相關的現金流量變動風險（但不是確定的承諾，這將是公允價值對沖）
an asset, liability, or a forecasted transaction
資產、負債或預期交易
under what type of circumstance would an unappropriated(outstanding) encumbrance balance not be closed at the end of the accounting period for a governmental fund?
1. unpaid interest and principal obligations that are budgeted in the subsequent year
2. unpaid salary obligations not budgeted in the subsequent year.
3. encumbrances associated with the appropriation that lapse at year-end.
4. outstanding encumbrances at year-end associated with an appropriation that does not lapse.
[4]
in the event appropriation for the governmental fund do not lapse at year-end, any outstanding encumbrances at year-end are carried forward to the following accounting period. outstanding encumbrances are included in an appropriate category of fund balance and may be disclosed in the financial statement if material.
which is a required part of a local government’s management’s discussion and analysis(MD&A) as part of its financial statements?
1. the MD&A should be presented with other required supplementary information
2. the MD&A should compare current year results to the prior year with emphasis on the current year
3. the MD&A should include an analysis for each fund
4. the MD&A should present condensed financial information from the fund financial statements.
[2]
1. should be presented independently, with other supplementary information presented separately
3. MD&A是涵蓋政府所有財務活動的敘述，對個別基金的分析將包含在財務報表的附註中。
4. the MD&A should present condensed financial information from the government-wide financial statements.
at the beginning of the year, a lessee signs a five-year lease that contains a written purchase option, which the lessee is reasonably certain to exercise. in preparing the annual cash flow statement after year-end, the lessee’s cash flow from operations will be:
1. positively impacted by the portion of the lease payments that represents interest
2. negatively impacted by variable lease payments not included in the lease liability.
[2]
because this lease contains a written purchase option that the lessee is reasonably certain to exercise, it will qualify as a finance lease. variable lease payments not included in the lease liability are treated as cash flows from operations and will therefore have a negative impact on bottom-line cash flow from operations.
which is correct regarding bond interest and amortization?
1. the closer the coupon rate is to the market at issuance, the lower the amount of amortization
2. for a zero-coupon, interest expense will be equal to interest payable every period
[1]
for a zero-coupon, there is no interest payment. so interest expense each period is equal to the amortization of the discount each period
in the consolidation journal entry ender the acquisition method, each of the following will result in a lower amount booked to goodwill except:
1. updated customer listed
2. technical expertise
3. unpainted technology
[2]
technical expertise is included in goodwill
which should be used in basic EPC? 自由選択
1. stock options
2. contingent shares
[2]
contingent shares that are dilutive are included in the calculation of basic EPS is and as of the date all conditions for issuance are met.
what amount of bond premium should be amortized in city’s debt service fund for purposes of fund financial reporting?
[0]
since the measurement focus is sources and used of financial resources, bond premium/ discount is not amortized in its government funds, including debt service fund.
budgetary year ending, which should a general fund record for estimated revenues?
1. property taxes, licenses, and fines 9000
2. proceeds of debt issuance 5000
3. interfund transfers for debt service 1000
[9000]
2 and 3 would be classified as estimated other financing sources in the budgetary entry
under which scenarios would it be acceptable for a company to capitalized interest?
1. on regular manufactured inventory items
2. during the delays in obtain permits to complete building construction
[2]
capitalized interest cannot be recognized on regular manufactured inventory items, but only on special order goods on hand for sale to customers.
inventory turnover
COGS/average inventory
during periods of rising price, when the FIFO inventory method is used, a perpetual inventory system result in an ending inventory cost that is:
same/ higher/lower compare to a periodic inventory system
same
net profit margin
net income÷net sales
which will not cause a decrease in stockholder’s equity?
1. the sale of treasury stock at less than cost
2. a loss on the sale of the discontinued segment
[1]
dr: cash 600 收購價
dr: APIC-TS 200
dr: retained earning: 200
cr: treasury stock 1,000 假設發行價
cash增加會增加RE，所以
the net impact on stockholder’s equity is an increase of 600.
which should property taxes due to a governmental unit be recorded as deferred inflows of resources?自由選択
1. property taxes receivable are recognized in advance of the year for which they are levied
2. property taxes are collected in advanced in of the year in which they are levid
both
- dr: property taxes receivable
cr: deferred inflows of resources - dr: cash
cr: deferred inflows of resources
consolidated balance S’s payable to P for intercompany sales?
account receivable
post dated check payable
include/exclude in the check balance?
excluded
the college received a $900 multiyear research grant available for use on a pro-rata basis over the next three years subject to other enrollment-based eligibility requirements. at the end of year 1 of the grant, the college has achieved enrollment levels that satisfy grant eligibility requirements equal to $500. as a result of this transaction, the community college would be recognized:
revenue:
deferred inflows of resources:
unearned revenue:
revenue: 300
deferred inflows of resources: 200
unearned revenue: 400
首先每年可以記賬的revenue上限是300，今年已經滿足的500裏面有200將會遞延至下一年記賬。
earned revenue是liability。本題中剩餘的400如果沒有達到要求，將得不到捐款，所以應該算作負債
which is correct regarding callable bonds?
1. an issuer is more likely to call a bond when interest rates move lower
2. bondholders will typically require a lower rate of return for callable bonds.
3. a callable bond provides an option for the bondholder
4. the call price is often set at a discount to par
[1]
儅利率走低時，借款人borrower以較低的利率再融資，有吸引力。由於可贖回債券為發行人issuer提供了提前贖回的選擇權，因此其更有可能在利率走低時贖回，希望以現在較低的利率重新發行。
2不對。因爲發行人可以選擇贖回債券，債務持有人holder需要更高的回報作爲補償被發行人選擇贖回后不得不將現金再投資的風險。
4不對。看漲期權價格一般高於面值。
which is incorrect?
1. a defined contribution pension plan cannot be overfunded or underfund
2. defined benefit plans will always have separate financial statements while defined contribution plans will never have separate financial statements.
[2]
both defined benefit and defined contribution plans may have plan level financial statements.
which is incorrect?
1. cash flows from a derivative instrument with a no hedging designation should be classified as an investing activity cash flow
2. cash flows from a derivative instrument containing other than an insignificant financing element at transaction inception should be classified as a financing activity cash flow.
3. cash flows from a derivative instrument used to hedge the cash flows associated with a long-term investment should be classified as an operating activity cash flow
4. cash flows from a derivate instrument with a no hedging designation but held for trading purposes should be classified as an operating activity cash flows.
[3]
3 is incorrect because the cash flow hedge is being used to hedge the cash flows associated with a long-term security instrument that does not have a held-for-trading purpose designation, the cash flows should be classified as an investing activity rather than an operating activity.
