Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CPA > FAR-Becker > Flashcards

FAR-Becker Flashcards

1
Q

Should int or adv exp be included in G/A exp?

A

No, int exp is a separate line item and adv exp is selling exp

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How to calculate insurance proceeds?

A

Replacement costs-deductible clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Impairment loss test under GAAP

A
  1. Impairment = NCV>undisc CF expected

2. Impairment loss = NCV-FV (disc future CF)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Cost incurred to maintain goodwill must be expensed/capitalized under IFRS and GAAP?

A

Expensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Research costs must be expense/capitalized under IFRS and GAAP?

A

Expensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How is goodwill calculated?

A

Excess FV (purchase price/% acquired) over FV of net assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

SYOD method

A

(Cost-SV)*remaining life/SOYD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Cash proceeds from issuance of convertible bonds should be reported as?

A

A liab for entire proceeds (NO accrued int)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Lease pmts should be reported in SoCF as?

A
  1. Cash pmt to reduce debt principal = financing

2. Cash int pmt = operating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Routine employer contributions from general fund to pension trust fund would be accounted for as _ in general fund

A

Expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Transfer from general fund to any other fund would be classified as _

A

Other financing uses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Proceeds from issuance of general debt obligation bond would be accounted for as _

A

Other financing sources (face amount +/- disc/prem); related transaction costs (eg underwriter’s fees) = debt service expenditure, NOT netted against debt proceeds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Statement of activities is?

A

Govt-wide FS to report rev/exp for biz-type activities (enterprise fund)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Primary purpose of statement of activities of non-govt NFP org?

A

Report rev/exp, G/L, and reclassification between classes of net assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Primary purpose of statement of financial position of non-govt NFP org?

A

Report assets, liabilities, and net assets as of a specific date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Revolving debt financing and gains on sale of assets are included/excluded from income-OCF recon

A

Excluded. They are non-operating items.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Support services for a non-govt NFP org includes?

A

G/A costs, cost of membership development, and fundraising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Fundraising exp for a non-govt NFP org includes?

A

Maintaining a donor list for contributions (to get them to donate more money)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

G/A costs for a non-govt NFP org includes?

A

Soliciting membership dues (admin collection function).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Cost of membership development for a non-govt NFP org includes?

A

Soliciting prospective members and printing membership benefits brochures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Level 1 inputs of measuring FV of A/L are?

A

Quoted prices in active market for IDENTICAL assets/liabilities when no adjs required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Level 2 inputs of measuring FV of A/L are?

A

Quoted price in active market for SIMILAR assets/liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Level 3 inputs of measuring FV of A/L are?

A

Inputs based on reporting entity’s internal data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Rev are inflows or ___ resulting from entity’s ___ ops

A

Enhancements of assets (inc)/settlements of liabilities (dec); major ongoing, NOT incidental

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Under GAAP, public companies FS must report segment info about a company’s major customers if that customers provides ___

A

10% or more of COMBINED revenue (internal and external) of ALL operating segments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Under equity method, div received is ___ .

A

Reduction in carry amount of inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Under cost method, div received is ___ and ___ inv acct

A

Income; does NOT affect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Under equity method, any GW created in inv acct is ___.

A

Ignored (neither amortized nor tested for impairment)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Purchased GW is ONLY tested for impairment in ___

A

Acquisition of controlling int (> 50%) of another co

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

JE for temp unreal loss on AFS securities

A

Dr. Loss-OCI
Cr. Valuation account (contra)
Subsequent recoveries = reversal of JE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

JE for perm real loss on AFS securities

A

Dr. Loss-IS

Cr. Cost of security acct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Calculation of int cap

A

WAAE (expendituremo o/s/12 mo)loan int

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

JE for collection of amt previously written off under allowance method

A

Dr. Cash

Cr. AFDA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

G/L on bond re-acquisitions/retirements is reported in ___

A

Income from continuing ops

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Overfunded pension plans are reported as _ on BS

A

NON-CURRENT asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Instead of being used in CF recon, int paid would be _

A

Disclosed in supplement section of SoCF

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Increase in lease payable (non-cash) would be _

A

Disclosed in supplemental schedule of non-cash investing/financing activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Purchase of BP is _ activity

A

Investing; it represents inv in the debt of other.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Proceeds from issuance of LT debt is _ activity

A

Financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Payments on LT debt is _ activity

A

Financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

SoCF must be presented for all _ funds as part of a set of FS

A

Proprietary (eg public benefit corp., govt utilities)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Equity section in proprietary funds are called _

A

Net position (= fund equity)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Equity section in govt funds are called _

A

Fund balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Property taxes and fines are examples of _ rev.

A

Imposed non-exchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Sales tax and income tax are examples of _ rev

A

Derived tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Environmental clean up is example of _

A

Govt-mandated non-exchange transactions that compel the collection of rev for certain activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

In statement of activities for a non-govt NFP org, all exp are reported as _

A

Decrease in unrestricted net assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Budgetary comparison schedules must show (4); _ are optional

A

Org budget, final amended budget, actual amt, variance computations; process descriptions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Most common functional classifications for non-govt NFPs are (3)

A

Program services, fundraising, mgmt/general

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Interfund reimbursement receipts are _ CF

A

Operating

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Operating transfers out are _ CF

A

Net non-capital financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Capital outlay for water plant improvements are _ CF

A

Capital and related financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Under IFRS, what happens when a revalued asset becomes impaired?

A

Reduce any revaluation surplus to 0 on OCI and remaining impairment loss on IS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What info should a public company present about rev from its reporting segments?

A

SEPARATE disclosure of amt of sales to unaffiliated customers and intracompany sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What doc is used as part of due-process activities of FASB for amending FASB codifications?

A

A proposed accounting standards update

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Gain in transaction that LACKS commercial substance?

A

Cash received=proportional gain to cash received; cash given=NO gain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Stock div on CS should/should not be recorded at FV under cost/equity method?

A

Should NOT be under either

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Trading securities are reported at _ w/ unreal G/L included in _

A

FV; IS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

DDB method

A

(Cost-AD)* 1/N *2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Adj cash bal = unadj cash bal _

A

+/- Bank errors, + int earned (credit memo), -ervice charges (debit memo)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Applying LCM to _ results in lowest inv amt

A

Separately to EACH item, NOT groups of similar items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What characterizes convertible debt under GAAP?

A

NO value is assigned to conversion feature b/c it cannot be sold/transferred separate from bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Investor has incentive to convert convertible bonds to equity when value of stock received is _ than market value of debt

A

Greater

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

_ are not required for contingent shares

A

Cash consideration, such as shares issuable upon exercise of stock option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

(3) are included in introductory section of local govt’s annual report

A

Letter of transmittal, org chart, list of principal officers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Cash equivalents include highly liquid items that mature within _ of acquisition

A

3 mo

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Company’s 1st IFRS FS are required to include _BS, _SoCI, _IS, _SoCF, _ stmt of changes in equity, and _

A

3-2-2-2-2, explicit stmt re: compliance w/ IFRS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

A derivative designed as FV hedge must be (4 criteria)

A

Specifically identified to hedged A/L/unrecog firm commitment; highly effective in offsetting changes in FV of hedged item (effectiveness is assessed every 3 mo);
normal documentation of hedging relationship btw derivative and hedged item; hedged item presentes exposure to changes in FV that could affect income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Cost associated with exit/disposal activities is _

A

Costs to relocate ee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

Assets being actively marketed for sale will be valued at LOWER of _

A

BV or NRV (=FV-costs to sell)

**Remember: they will NOT be valued at HC and they will NO longer be depreciated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Dep calc should be based on _ less _

A

FV (= cash equivalent price = cost), SV

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Periodic/market/effective int rate on bond = _

A

Int exp/NCV of bond at BOP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Coupon/stated int rate on bond = _

A

Cash (int) actually paid/bond face amt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Market value of bond issued at a disc/prem is _ plus _ at _

A

PV of principal amt, PV of all future int pmts, market (effective) int rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Current portion of provision of income taxes = _

A

Income tax payable (TI*CY’s effective income tax rate)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Ee’s compensation for future absences/vacations should be accrued if (4 criteria)

A

Services ALREADY rendered (they’ve worked), amt can be REASONABLY ESTIMATED, obligation relates to VESTED accumulative rights, pmt of compensation is PROBABLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Div paid is _ CF

A

Financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Financing activities include _

A

Getting funds from investors and providing them w/ return on/of their inv, eg paying div

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

Basic EPS = _

A

(NI-cum. PS div)/WA CS o/s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Exception to GR of expenditure accrual for govt funds under modified accrual basis relates to _

A

Treatment of int and principal pmts for LT debt; they are recorded when they become due/payable (GR: expenditures are recog when incurred b/c measurable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Est rev control account is eliminated when _

A

Budgetary accts are closed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Donated capital assets to a govt unit are recorded at _

A

Est. FV when received (as if they had been purchased)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

___ accounts for assets that have been internally designated by institution for a specific purpose

A

Quasi-endowment fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Quasi-endowment fund would be displayed as _ net assets.

A

UNrestricted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

A component unit uses BLENDED presentation when _

A

Board of component almost same as that of primary govt, component unit serves primary govt exclusively, component unit is NOT a separate legal entity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

A component unit uses DISCRETE/SEPARATE presentation when _

A

Criteria for blended presentation are not met (discrete presentation=most common)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Test of component unit (SELF)

A

Separately-elected governing body, legally separate, financially independent of state and local govt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

G/L on trouble debt restructuring = _

A

Debt amt cancelled-FMV of asset exchanged (CV of asset is adjusted to FV); ordinary G/L

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Warranty costs are recognized when _

A

Sold, at the date of sale b/c they are probable and estimable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

According to FASB and IASB, fundamental qualitative characteristics of useful financial info are _

A

Relevance, faithful representation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

To be RELEVANT, financial info must have _

A

Confirmatory value, predictive value, materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

To FAITHFULLY REPRESENT, financial info must be _

A

Complete, neutral, free from errors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Comprehensive income DOES NOT include _

A

Owner transactions/investments by/distributions to owners, such as div paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

R/D costs are _ unless they _ or _

A

Expensed when incurred, have alt uses, are reimbursable by others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

Under cost method, div are recorded as _ by investor

A

Income

96
Q

Cost basis inv is reduced ONLY IF _

A

Cum div>cum earnings (= return of capital), shares of stock are sold, sub incurs material losses that hugely reduced net worth

97
Q

Acquisition method requires that _ of sub’s assets FV be recognized

A

100%.

98
Q

Cost method = _%

A

20 (NO consolidation)

99
Q

Equity method = _%

A

20-50 (NO consolidation)

100
Q

Acquisition method = _%

A

51-100 (Consolidate sub at 100% FV at acquisition date)

101
Q

What is generally associated with terms of convertible debt securities?

A

LOWER int rate than that of NON-convertible debt b/c of value of conversion feature

102
Q

Increase in prepaid insurance would cause DTA/DTL

A

DTL b/c deductible now (paid) but taxable later when expensed on books

103
Q

Increase in rent receivable would cause DTA/DTL

A

DTL b/c taxable later when money is received

104
Q

Increase in warranty obligations would cause DTA/DTL

A

DTA b/c/ deductible when paid later

105
Q

_ issued by a public company should be reported on issuer’s books as a LIABILITY on date of issuance

A

CS w/ UNconditional redemption feature (b/c obligation of not preventable CF in future)

106
Q

Activities are required to be reported as an ENTERPRISE fund if _

A

Pricing policies establish fees/charges to recover costs (required by laws/regulations), financed w/ debt solely secured by rev from fees/charges

107
Q

JE when taxpayers are billed for property taxes

A

Dr. Property tax receivable

Cr. Rev (net of est. uncollectible)

108
Q

Est rev are _ when est rev and appropriations are closed at fiscal YE

A

Credited

109
Q

Inv, prepaid expenditures, or resources that are legally/contractually required to remain whole (eg permanent fund capital) are considered _

A

Non-spendable

110
Q

Non-capital financing activities include _

A

Borrowing for non-capital purposes, CR from grants/subsidy (eg operating grant)/property taxes

111
Q

Unassigned/unencumbered fund balance in general fund would be increased by _

A

Appropriations (approved spending/est expenditures) over actual expenditures

112
Q

Recipients that do not have _ would recognized assets received as a _ to beneficiary

A

Variance power to determine use of funds received, liability

113
Q

Govt activities column in govt-wide FS includes data from _ funds

A

GRaSPP and S (internal service from proprietary fund)

114
Q

Conditions that did not exist and occurred after BS date are _ and they are _ on FS

A

Non-recognized subsequent events, NOT accrued/DISCLOSED in notes to FS

115
Q

Temp market declines in inv are recognized/not recognized at interim when turn-around can be reasonably expected to occur before YE.

A

NOT recognized

116
Q

G/L on abandonment of equip is reported in _

A

Income from continuing ops

117
Q

Officer’s compensation exp include _.

A

Salary accrual, bonuses not yet paid

118
Q

Cost recovery method is used when _

A

There is no reasonable basis for estimating collectibility

119
Q

Changes in current cost of non-monetary assets (ie equip/land) are NOT included in _ but are classified as _ in current cost stmts

A

Current cost income from continuing ops, holding G/L

120
Q

NCI calc under IFRS PARTIAL GW method

A

NC=FV of sub net assets*NCI% (Remember: partial=>sub’s net assets)

121
Q

NCI calc under IFRS FULL GW method

A

NCI=FV of sub*NCI% (Remember: full=>entire sub)

122
Q

GW calc under IFRS partial GW method

A

GW=acquisition cost-FV of sub’s net assets acquired (Remember: partial=>net assets acquired)

123
Q

Under IFRS full goodwill method, goodwill is calculated:

A

Goodwill = FV of sub - FV of sub’s net assets

Remember: full => sub’s entire net assets

124
Q

In biz combo accounted for under acquisition method, registration/issuance costs are _

A

Direct reduction to value of stock issued by reducing APIC

125
Q

In a biz combo accounted for under acquisition method, direct out-of-pocket costs (ie legal/consulting fees) are _

A

Expensed

126
Q

JE for biz combo accounted for under acquisition method

A

Dr. Inv in acquired biz
Dr. Out-of-pocket expenses (ie legal/consulting fees)
Cr. Cash (registration costs+out-of-pocket costs)
Cr. CS (issued shs*par value)
Cr. APIC (value of market>par * shs-registration costs)

127
Q

Cash in money market account is included in _

A

Cash/equivalent (Remember: it’s STILL cash)

128
Q

Under GAAP and IFRS, bond issuance costs _

A

Reduce cash proceeds from bond issuance b/c they are netted against disct/prem and deducted from CV of bond

129
Q

Life insurance premiums are _

A

Non-deductible, they are added back to arrive at TI

130
Q

Municipal bond income is _

A

Non-taxable, they are subtracted to arrive at TI

131
Q

Effective tax rate = /

A

Income tax exp (from TI)/Pretax income

132
Q

Determine current/non-current liabilities of pension plan

A

CL=payable in 12 mo-FV of plan assets; non-CL=rest

133
Q

When computing OCF, inc/dec in AFDA is _

A

Added/subtracted from NI (same direction)

134
Q

Diluted EPS = /

A

(Income avail to CS shareholders+after-tax int exp)/WA # of shares o/s after conversion

135
Q

After-tax int of dilutive securities = _ +/- _ * _

A

Int pmt on debt (face amount*stated int rate), disc/prem amort, (1 - tax rate %)

136
Q

For capital projects fund, grants received are recorded as _

A

Revenue

137
Q

For capital projects fund, transfer from general fund are recorded as _

A

Other financing sources

138
Q

For capital projects fund, proceeds from general obligation bonds issue are recorded as _.

A

Other financing sources

139
Q

Wages/salaries is example of program/function/activity/object classification

A

Object (= CoA titles)

140
Q

Program classification groups _

A

Activities/ops/org unit directed to specific purpose/objectives

141
Q

Function classification groups _

A

Activities aimed at accomplishing major service/regulatory responsibility

142
Q

Activity classification provides _

A

Data for calculating expenditures per unit of activity, or specific/distinguishable line of work performed by org unit.

143
Q

Fund acctg nables services/mission-driven orgz to monitor compliance with _

A

Spending PURPOSE (LEGAL restrictions), spending LIMITS (FINANCIAL control), other fiscal accountability objectives

144
Q

T/F: Under GASB 34, budgetary comparison schedule must include either GAAP or budgetary presentation formats/basis of accounting

A

T, any format or basis of acctg may be used to present budgetary comparison schedule as long as a recon to GAAP is also prepared

145
Q

Compute gain on restructuring for trouble debt restructuring involving only a modification of terms

A

Gain=CV of debt-total FUTURE cash pmts

146
Q

Interim FS filed with SEC would NOT include _

A

SoCF for most recent fiscal qtr

147
Q

Interim FS filed with SEC would include _

A

SoCF for PY YE-most recent fiscal qtr, SoCF for cum 12 mo b4 most recent fiscal qtr

148
Q

Internally created GW is _

A

Expensed (eg hiring/training ee)

149
Q

Intangible asset is amortized over legal remaining life/ability to renew indefinitely

A

Indefinite life, so NO amortization

150
Q

Ending FV of plan assets is calculated as

A

Beg FV of plan assets+contributions-benefits paid +return on plan assets

151
Q

Calc of TS-related APIC under cost method

A

(Reissuance price-bought back price)*# of shares reissued

152
Q

Property taxes are recognized _ regardless of acctg basis

A

Net of uncollectible

153
Q

_ is most restrictive classification of govt fund bal

A

Committed

154
Q

Basic criteria used to determine reporting entity for a govt unit include _

A

Financial interdependency, selection of governing authority, designation of mgmt, ability to significantly influence ops, accountability of fiscal matters (financial accountability)

155
Q

Under IFRS, exchanges of dissimilar assets are regarded as exchanges that _ and _

A

Generate rev, all G/L losses are recognized

156
Q

Inv costs include _

A

Purchase price, freight-in

157
Q

Selling exp includes _

A

Freight-out, salaries/commissions, adv

158
Q

G/A expense includes _

A

Officers’ salaries, acctg/legal fees, insurance

159
Q

To correct inv NOT included from prior period, RE must be _

A

Increased by understatement amount, net of tax

160
Q

Org costs are ___ under GAAP

A

Expensed when incurred

161
Q

Dist on BP is ___ from CL

A

Deducted

162
Q

Income taxes VA: ___ should be recognized in income from continuing ops in period of change

A

Effect of change in opening bal of VA/potential realization of DTA from change in circumstances

163
Q

Required FS for biz-type activities (eg enterprise funds) are _

A

Stmt of net position (BS), stmt of rev/exp and changes in net position (IS), SoCF, footnotes, MD/A, RSI

164
Q

JE for acquisition of FA through capital lease of govt unit

A

Dr. Expenditure-capital lease

Cr. Other financing source-capital lease

165
Q

FV hedge is recorded on _

A

IS

166
Q

CF hedge (effective) is recorded on _

A

OCI

167
Q

GAAP does NOT require intraperiod income tax allocation to _

A

Operating income

168
Q

GAAP requires intraperiod income tax allocation to (name 3)

A

Income from continuing ops, discontinued ops, retroactive acctg principle changes

169
Q

NI or RE will _ through TS transactions

A

Never be increased

170
Q

Calc of G/L on disposal of asset (thru property div)

A

(FV of property div-BV of property div)*shares declared

171
Q

Amort of bond disc is _ CF

A

Operating

172
Q

Under IRC Sec. 457, deferred compensation plans for non-proprietary fund ee’s should be reported in _ fund

A

Pension (and other ee’s benefits) trust

173
Q

___ is NOT a valuation technique used to measure FV of A/L

A

Impairment approach

174
Q

Valuation techniques used to measure FV of A/L are (name 3)

A

Market, income, cost approach

175
Q

Market approach uses _ to measure FV of A/L

A

Price/other market info from identical or comparable A/L

176
Q

Income approach uses _ to measure FV of A/L

A

Discounted future CF or earnings

177
Q

Cost approach uses _ to measure FV of A/L

A

Current replacement costs

178
Q

Depreciable property constructed on leased land is depreciated over _ of _ or _

A

Lesser, term of lease, life of property

179
Q

Net pension G/L are required to to be reported in AOCI until _

A

Recognized in net periodic pension cost through amortization

180
Q

JE for CY amort of net pension gain

A

Dr. OCI
Cr. Net periodic pension cost
Dr. Deferred tax expense-NI
Cr. Deferred tax expense-OCI

181
Q

Proceeds from sale of TS is _ CF

A

Financing

182
Q

Interim income tax expense =

A

YTD income*est annual ETR-tax expense recognized in previous interim periods

183
Q

Patent is capitalized and amortized over

A

Lesser of legal life or economic life

184
Q

Asset’s cash equivalent price is its

A

FV

185
Q

When nonmonetary asset is exchanged for another nonmonetary asset for a loss, loss is

A

Recognized immediately b/c asset received should NOT be valued at more than their FV (cash equivalent price); value of asset received=BV of asset given up-cash received+cash paid-loss recognized

186
Q

Combined FSs would be most appropriate for

A

Several corps owned by 1 individual

187
Q

Consolidated FSs would be most appropriate for

A

Parent and sub

188
Q

Consolidated FSs are prepared when one company has a controlling financial interest in another unless

A

Sub is in legal reorg or bankruptcy and/or sub operates under severe foreign exchange restrictions, control, and other govtally imposed uncertainties so severe that they cast significant doubt on parent’s ability to control sub

189
Q

Quick ratio =

A

(Cash+net AR+marketable securities)/CL

190
Q

Aggregate amt of pmts to be made on UNconditional purchase obligations should be disclosed (in a FN to FS) for each of

A

5 years following date of latest BS

191
Q

Under IFRS, past service cost is recognized

A

In period of plan amendment on IS (unlike GAAP, it is NOT reported in OCI therefore recognition in future periods thru amort is NOT required)

192
Q

Basic EPS from income from continuing operations and NI are presented in

A

Simple capital structure

193
Q

Basic AND diluted EPS from continuing operations and NI are presented in

A

Complex capital structure

194
Q

When acquired, equipment, facilities, and services purchased previously included in est total current cost of closure and post-closure care should _ in govt-wide FS

A

NOT be reported as capital assets but as reduction of accrued liabilities in general LT liabilities

195
Q

Any debt that is to be repaid from general resources should be recorded as

A

General LT liabilities in govtal activities column of govt-wide stmt of net position (BS)

196
Q

Contributions from general fund to other funds are recorded as

A

Expenditure, NOT transfer out

197
Q

Internal transfers are (usually?) classified as

A

Noncapital financing activities

198
Q

2 inherent risks of int swap contracts are

A

Risk of exchanging a lower int rate for a higher int rate (market risk) and risk of nonperformance by counterpart of agreement (credit risk)

199
Q

Segment _ is NOT reported under IFRS nor GAAP

A

CF

200
Q

Equity instruments issued for ee services are to be valued at date of

A

Grant

201
Q

Is bond prem/disc amortized in govt funds?

A

No, since measurement focus is sources and uses of financial resources

202
Q

When collectibility is reasonably assured, excess of subscription price over stated value of no par CS subscribed should be recorded as

A

APIC when subscription is recorded/received

203
Q

Loss from discontinued operations include

A

Operating loss, gain from sale of operation, related exit and disposal costs (ie, ee termination benefits, cost to terminate operating lease)

204
Q

To be significant enough to report on, a segment must be at least 10% of

A
  1. Combined revenues (intersegment or affiliated customers) 2. operating profit (of all segments not having operating loss), or 3. identifiable assets
205
Q

Only sinking fund accounts (or the portion thereof) that are considered _ can be included within CA

A

To offset current bond liabilities

206
Q

Fund structure of a govtal entity and number of funds used is a matter of

A

Judgment, min number of funds consistent with legal requirements and sound financial administration should be set up

207
Q

Basic FSs and RSI for general purpose govts should consist of

A

MD&A, basic FSs, and RSI

208
Q

Assets obtained thru capital lease should be reported in govt-wide stmt of net position as

A

General capital asset (as an asset and liability in full accrual acctg). In comparison, the asset would be recorded as expenditure and the lease as other financing source under modified accrual acctg

209
Q

Liquidation basis of acctg is applicable to

A

Public, private, and NFP entities

210
Q

Segment _ is NOT reported under IFRS

A

CF

211
Q

What conditions must exist for impairment loss to be recognized under GAAP?

A
  1. CV > FV 2. CV is not recoverable (FV would be recoverable but difference would not be)
212
Q

Stock rights should be allocated between stock and stock rights using

A

Pro rata allocation based on relative FV of stock and stock rights (times value of stock purchased)

213
Q

What supports interperiod equity as a financial reporting objective of a govtal fund?

A

Adoption of a balanced budget

214
Q

Estimated revenues for general fund would include _

A

Property taxes, license and permits, intergovtal revenues (transfer in from other funds would be considered estimated other financing sources)

215
Q

CR from grants or subsidies, property taxes are classified as _

A

Non-capital financing activities

216
Q

Debt security registration costs are

A

Capitalized and amortized

217
Q

What is factoring receivables?

A

Converting receivables to cash by assigning them to a factor, either with or without recourse

218
Q

Treatment of profit/loss on sale/leaseback of capital lease?

A

Deferred and amortized in proportion to depreciation taken on leased back asset (asset VA)

219
Q

Under GAAP, amortization of unrecognized prior service cost is calculated by

A

Assigning equal amount of cost to future periods of service of each ee (over average service life of however many ee accounted for) at plan amendment date

220
Q

Where is internal service funds usually reported?

A

Govtal activities column of govt-wide stmt of net position and stmt of activities since they are generally established to service govtal funds

221
Q

Contributions to NFP include transactions which are _

A

Unconditional (not requiring a future event to occur), non-reciprocal, voluntary, and not of an ownership investment

222
Q

Govt-wide FS classification of net assets are

A

Net investment in capital assets, restricted, and unrestricted

223
Q

NFP classification of net assets are

A

Permanently restricted, temporarily restricted, and unrestricted

224
Q

Major fund for purposes of fund FS presentation means that it has to be _

A

Both 10% of its FUND category’s assets/revenues/expenditures/expenses, or 5% of COMBINED govtal and enterprise assets/revenues/expenditures/expenses

225
Q

General fund is always a _

A

Major fund

226
Q

How should acquirer recognize a bargain purchase in a biz combo?

A

Gain in earnings at acquisition date (it’d be goodwill in statement of financial position when amount paid for net assets > FV of net assets acquired)

227
Q

What is included in both cost and retail amounts of COGAFS under retail inventory method ?

A

Purchase returns (only in cost: freight in; only in retail: sales return and net markups)

228
Q

Occupancy expense includes

A

Rent expense (includes amortization of lease bonus over life of lease) and depreciation of leasehold improvements over shorter of improvement life or lease term

229
Q

Pension related items on AOCI that increase pension expense are _

A

Unrecognized prior service cost, transition obligations, net losses (recognized through amortization into net periodic pension cost-DR to AOCI)

230
Q

Pension related items on AOCI that decrease pension expense are _

A

Unrecognized transition assets and net gains (CR to AOCI)

231
Q

Treatment of TS “gains and losses”

A

Corporations are not allowed to report IS gains and losses from TS transactions; they are direct adjustments to SHE (gains-CR to APIC-TS; losses-DR existing APIC-TS to 0 then RE)

232
Q

All TS transactions _ total equity

A

Decrease

233
Q

For NFP, non-operating income items, such as _, are excluded from reconciliation from net income

A

Revolving debt financing (“current portion of bonded indebtedness”) and gains on sale of assets

234
Q

For NFP, operating income items, such as _ , are included in reconciliation from net income

A

Interfund receivables for services (“amounts due from other funds”)

235
Q

NFP investments in debt securities are displayed at _ at YE

A

FV (“quoted market price”)

236
Q

_ would be used to determine a segment’s operating income

A

Sales to other segments (NOT income tax expense, G/L on discontinued operations, general corporate expenses, or equity in NI of another company unless they are included in determining segment profit reported to Chief Operating Decision Maker)

CPA (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions