FAR⑩ Flashcards
P purchases term bonds at a premium on the open market. these bonds represented 20% of the outstanding class of bonds issued at a discount by S, P’s wholly-owned subsidiary. P intends to hold the bonds until maturity. in a consolidated balance sheet, the difference between the bond carrying amount in the two companies would be:
1. include as a decrease to retained earnings
2. reported as a deferred credit to be amortized over the remaining life of the bond.
[1]
當合并集團的成員持有公司間債權時，其差額會被抵消。
premium會從RE減去，discount會加在RE中
which will not cause a decrease in stockholders’ equity.
1. the sale of the treasury stock at less than cost
2. a loss on the sale of a discontinued segment
[1]
cr: cash 600
cr: APIC 200
cr: RE 200
dr: TS 1,000
雖然APIC和RE都有減少，但是TS本來是stockholders’ equity的負數，現在賣掉了反而令stockholders’ equity增加了600
which is not OCI?
1. minimum pension liability equity adjustment for a defined-benefit pension plan
2. gains from extinguishment of debt
[2]
1. the minimum pension liability adjustment is no longer required under USCPA
2 is a component of net income
a bond is issued at a premium and redeemed at a discount to par. any gain or loss as a result of extinguishment prior to maturity will be booked as a:
1. loss in income from continuing operations
2. gains in income from continuing operating
[2]
the issuer is effectively paying less than par to remove a liability that is on the books at a price above par.
cash contributions of $200 with donor restrictions with specific requirements relative to the acquisition of property
investing/financing activity?
financing activity
because the restriction is the acquisition of property, not general operations.
・transfer to a debt service fund 100
・payment to a pension trust fund 500
・purchase of equipment 300
other financing uses?
100
other are both classified as expenditures
how is accumulated OCI presented in a company’s balance sheet?
1. as an item of equity following earnings
2. as part of the company’s retained earnings
[1]
equity
————————–
retained earnings
accumulated OCI
treasury stock
which is correct?
1. comprehensive income may be presented in a single financial statement that presents both net income and comprehensive income
2. all companies must be present a statement of comprehensive income
[1]
2 不適用於一些沒有其他綜合收入的公司。
which is not a criteria for recognizing a liability associated with exit or disposal activities?
1. the existence of a present obligation to transfer assets in the future
2. a commitment to an exit plan
[2]
a liability is only recognized when all criteria are met:
1. an obligating event has occurred
2. the event results in a present obligation to transfer assets or to provide services in the future
3. the entity has little or no discretion to avoid the future transfer of assets or providing of services.
On January 1, Year 3, Peterson sold equipment to Silver for $120,000. The equipment was originally purchased on January 1, Year 1, for $100,000. Peterson was depreciating the equipment over 10 years using straight-line depreciation. There was no salvage value. Silver decides to depreciate the equipment over eight years, also using straight-line depreciation with no salvage value. Assume all other appropriate year-end and income tax journal entries have been made.
Eliminating journal entry at December 31, Year 3:
cr: gain on sale 40,000
dr: accumulated depreciation 15,000(30-15)
dr: depreciation expense 5,000(15-10)
dr: equipment 20,000(120-10)
Throughout Year 3, Peterson sold merchandise costing $30,000 to Silver at a price of $50,000. Silver sold 60% of the inventory by December 31, Year 3. Silver remitted payment to Peterson before year-end.
Eliminating journal entry at December 31, Year 3:
dr: sales 50,000
cr: inventory 8,000
cr: COGS 42,000
[internal service fund financial statements] financial statement location
1. Consolidated with governmental activities in the government-wide financial statements
2. Consolidated with business-type activities in the government-wide financial statements
[1]
[Definition of measurable and available ] financial statement location
1. required supplementary information
2. Required footnote disclosure
[2]
goodwill measurement basis?
1. fair value
2. historical cost
[2]
cash and cash equivalents measurement basis?
1. NRV
2. fair value
[2]
all legal steps were taken to refinance the notes but were unable to consummate refinancing. what account should be credited to the record?
1. deferred inflows of resources
2. bond anticipation note payable
3. other financing sources control
[2]
bond anticipation notes are current liabilities.
remeasurement method
- begins with?
2.monetary items @___ rate ,
C
A
A
L - nonmonetary items @___ rate
M
A
C
P
P
4.Retained earnings are a plug number to get the balance sheet to balance.
- begins with the balance sheet
- monetary items @current exchange rate,
_cash
_A/R
_A/P
_long-term debt - nonmonetary items @historical rate
_depreciation expense
_marketable securities
_PP&E
_accumulated depreciation
_CS
_PS - Retained earnings are a plug number to get the balance sheet to balance.
translation method
1. _____ first
2.balance sheet:__ &__ @historical rate
other@___ rate
3. income statement @___ rate
translation method
1. income statement first
2. balance sheet: CS &PS @historical rate
other@current rate
3. income statement @weighted average exchange rate
C entered trouble debt restructuring with F.
F agreed to accept land with a CV of 85 and an FV of 120 in exchange for a note with a CV of 185.
discarding income taxes, what amount should C report as a gain on troubled debt restructuring in its income statement?
[65]
multiple products and services (like sales, installs, and two years of customer training as part of its sales contract). when should recognize revenue?
1. at the end of two years, when all services have been completed
2. proportionately as separate contract elements are performed.
[2]
when a sales contract includes multiple products or services, the fair value of the contract must be allocated to the separate contract elements. revenue is recognized as each element is completed.
footnote disclosure in the financial statements for pensions do not require the inclusion of which one?
1. the amount of unrecognized prior service cost
2. the components of net periodic pension cost
3. the differences in executive and non-executive plans
4. a detailed description of the plan including employee groups covered.
[3]
1.未確認的前期勞務成本金額
2. 淨定期養老金成本的構成
3.執行計劃與非執行計劃的區別
4. 計劃的詳細描述，包括涵蓋的員工群體。
a retained earnings appropriation can be used to
1. restricted earnings available for dividends
2. provide for a contingent loss that is probable and reasonable
[1]
dr: unappropriated retained earnings(reduce)
cr: appropriated retained earnings(set up)
it does not effect the income statement!
costs to develop computer software for use in the company’s general management information system
should it report as research and development expenses?
no
research and development include costs incurred prior to technological feasibility for developed software that is to be sold, or marketed. this software is for internal use, unrelated to production, and is not considered research and development.
which is false?
1. when a non-compensatory plan fails to meet the USGAAP requirements, it is usually classified as a compensatory plan.
2. employees under a non-compensatory plan are allowed to extend their initial option exercise period.
[2]
如果實體試圖制定不符合美國工人會計原則的思想要求的非補償性計劃，該計劃通常會成爲補償計劃。
the expiration of stock options has no effect on the compensation expense recorded under a compensatory plan.根據補償計劃記錄的補償費用不受股票期權到期的影響
2 在非補償性股票期權/購買計劃下，形式期權（權利）的時間限制在合理期限内，沒有進一步延長最初行使期 的選擇權
the net asset reclassifications of a nongovernmental not-for-profit organization would be reported on?
1. statement of financial position
2. statement of activities
[2]
cash received from a contribution as good faith advance on a promise to contribute matching funds
which cash flow?
operating
Cash received with matching conditions attached should be deferred. Deferred items (CLAD) should be classified as cash flows from operations.
interest earned on endowment
which cash flow?
Cash flows from operating activities
Interest earnings would be accounted for in the Statement of Activity as an increase in Net Assets in the appropriate category defined by the original bequest. Increases in Net Assets of this character are similar to elements of net income accounted for as cash flows from operating activities in the Statement of Cash Flows in a commercial application.
The company elected the private company alternative for the subsequent measurement of goodwill and concluded that the maximum amortization period permitted under the alternative was appropriate.
April 1, recognized $300,000 goodwill from the acquisition of a competitor
Asset carrying amount at 12/31/Y1
Goodwill represents the excess of the price paid in an acquisition over the fair value of the net assets acquired. Goodwill is only recorded as an asset on the balance sheet in an acquisition. Internally generated goodwill is not recorded as an asset. Typically, goodwill is considered to have an indefinite useful life and is evaluated for impairment on an annual basis. However, an alternative treatment option is allowed for private companies. A private company may choose to amortize goodwill over a 10-year period (or less than 10 years if another useful life is more appropriate). In this case, the company is choosing to amortize goodwill over the maximum 10-year period, which results in $30,000 of amortization expense per year. Since the acquisition occurred on April 1, the company will prorate the expense for Year 1 to reflect nine months of expense (30,000 × 9/12 = 22,500). At the end of Year 1, the company will record the following journal entry to amortize goodwill:
DR Amortization expense $22,500
CR Accumulated amortization (or Goodwill) $22,500
The carrying value of goodwill at the end of Year 1 equals $277,500, which is the original cost of $300,000 less the accumulated amortization recorded to date of $22,500.
10/1 purchased a copyright of $540,000 with a contractual life of 20 years and entered into an agreement to sell the copyright in 10 years for $200,000
Asset carrying amount at 12/31/Y1
[531,500]
(540,000 – 200,000) / 10 = 34,000.
(34,000 × 3/12)
property dividends distribute should record with FV or CV?
FV
