Far 2 Flashcards
What is the equation for Ending ARO?
Beginning ARO + PV of new ARO + Accretion expense - ARO settled during the period
When is the estimated revenue account balance pf a governmental type fund eliminated?
When the budgetary accounts are closed
What document is typically issued as part of the due-process activities of FASB?
A proposed accounting standards update
What does a NFP statement show in there statement of activities?
Change in net assets without donor restrictions and net assets with donor restrictions
A majority voting interest is deemed to be:
Greater than 50% of the directly or indirectly owned outstanding voting shares of another entity have been acquired
What is the definition of a restricted fund?
Restricted as to use by the donor, grantor, or other source of the resource
How are discontinued operations that occur at midyear initially reported?
Included in net income and disclosed to interim financial statements
What is the equation for total consideration given in an acquisition?
Cash + Common stock + Fair value of contingencies = total consideration
What is the formula for Total fund balance and unassigned fund balance?
Total asset - total Liabilities = Total Fund Balance
Total Fund balance - assigned fund balance (purchase order) = Unassigned fund balance
What are some examples of investing section in $ flows?
Purchase of AFS securities and Equipment
How are checks treated at the balance sheet date if not disbursed?
Still included as cash on the balance sheet date net any overdraft fees
What is the depreciable life of an asset for a finance lease with option to purchase at the end of life of lease?
Total years of the lease
When a company pledges (assigns) receivables in return for a loan, how will the assigning company (giver of receivables) account for the A/R given up?
The giver of the receivables will still have control of the receivables
Which of the following accounts of a governmental unit is credited when taxpayers are billed for property taxes?
Dr Property taxes receivable
Cr Revenues (net of estimated uncollectibles)
When an entity reissues F/S should the entity recognize subsequent events?
no, no adjustments for subsequent events is made between the date the original F/S were issued or available to be issued and the date the F/S are reissued
What can be capitalized for a Patent?
When would a patent be expensed?
Purchase Price + Acquisition cost + Successful legal fees
Expensed when there is an unsuccessful defense in its entirety - any amortization up until that point if held for a few years
How are multiyear pledges recorded?
At their net present value as net assets with donor restrictions
What is included in discontinued operations?
Operating loss + Termination benefits + cost to terminate the lease
What is the J/E for a partially liquidating cash dividend?
Dr Retained earnings
Dr APIC
Cr Cash dividend payable
What is the primary purpose of a quasi-reorganization?
Eliminate Retained earnings: an accumulated deficit (Negative Retained earnings balance)
Why? So Corporation can have a “fresh start” with a 0 balance in R/E
How are start-up costs treated?
Expensed as incurred
How should donated assets be recorded?
At Fair value
What is the criteria for a NFP to recognize Salary & Wage Expense?
- Services are normal part of the program or supporting services would be performed by salaried personnel
- Organization exercises control over the employment and duties of the donors of the services
- ONPOhas a clear measurable basis for amount
- Services are significant
- Service are not primarily for benefit of its members
Special events do not meet criteria to be recognized as expense
When using direct method do you net A/R against AFDA?
NO
