FAR Chapter 3 Assets And Related Topics Flashcards
What makes the dollar value lifo greater than the comparable base year value?
If the price index used to determine dollar value lifo is greater than 1
What’s another name for bad debt expense?
Provisions for uncollectable accounts
What is the exception to good will
Fair value minus book value is goodwill. However, there is a rule that says the impairment loss CANNOT exceed the current carrying value of goodwill on the balance sheet.
When can impairment test be performed for goodwill?
Anytime of the year as long as it’s the same time each year or if something triggers it
What is the exception to research and development expenses?
Alternative future use for ex a printer bc it still has use after the R&D and contractual agreement hired to do research for another company as a consultant
What can make a trademark acquired have an indefinite life?
Very little cost to renew
When is capitalized interest made?
It begins when expenditures have been made until it’s ready for its intended use
How to calculate multiple acquired assets?
Allocation of the purchase price with FV total
How to calculate inter company profit?
Inter company profit on inventory * % of inventory on hand (ending inventory divided by purchases)
