Far 3 Flashcards
_________ accounts, __________ accounts and petty cash are considered cash and cash equivalents
Checking; depository
Cash in _____ sinking fund is considered restricted
bond
_______ will produce a lower inventory turnover ratio in an inflationary economy
LIFO
__________materials and labor, _________ materials and labor and insurance are all costs that are counted in inventory on the balance sheet
Direct; Indirect;
a corporation preparing it’s FS should use GAAP principles used in the most recent ________ ___________
annual report
200% declining balance depreciation method is calculated by the straight-line rate times _________: 1/10 * 200% = 20%
200%
depletion base: __________ price + __________ cost + restoration cost - __________ value
purchase; development; expected
when a permanent impairment occurs, the book value is __________ and a loss is recorded and the loss is added to _________ __________ account
reduced; accumulated depreciation
Net realizable value = Amount ____________ can be sold for - at ___________cost
INVENTORY; DISPOSAL
Depreciable property constructed on leased land is depreciated either over the _______ of the property or the term of the ___________, whichever is shorter
LIFE; LEASE
A ___________ is subject to the recoverability test when testing for impairment
PATENT
___________ expense is the increase in the ARO due to the passage of time
ACCRETION
Accretion expense =___________ ARO * _________ adjusted rate
BEGINNING ARO; RISK
Composite or Group depreciation is the process of __________ the economic lives of a number of property units depreciating the entire class of assets over a single life
AVERAGING
Cost allocated to Land cost are filling in a ____ or ________ and cost allocated to building cost are _______ a hole for the foundation
HOLE; LEVELING; DIGGING;
To calculate COGS __________ inventory + _________ - purchase __________ + freight in - ___________ inventory
BEGINNING; PURCHASES; DISCOUNTS; ENDING
In calculating COGS ________ ___ is not included because it is a selling expense (i.e. period expense)
FREIGHT-OUT
Estimated restoration cost should be _______ to the depletable base of the natural resource
ADDED
R&D expenses are __________ in the year incurred. Legal costs of applying for a patent and legal costs to defend the rights of the patent are ____________
EXPENSED; Capitalized
Sum of the years depreciation method: take the depreciation years and sum them up e.g. depre of 4 years ( 4+3+2+1) =10. In year 1 multiply the ________ base by 4 (amount of years left over) /10
DEPRECIABLE
Dividend from prior year received in current year is included in current year _________ operations
CONTINUING
Credit loss expense (BASE) for Trade receivables is Beginning Balance + _________ expense - write-offs = Ending Balance
CREDIT
