FAR Formulas Area BS Accounts Flashcards

1
Q

Adjusted GL Balance
From Bank statement to GL

A

Bank Statement Balance + Deposits in Transit - Outstanding Checks

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

Adjusted GL Balance
From GL to Bank statement

A

GL Balance - Bank Charges - NSF Check

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

A/R Rollforward formula

A

Beginning Balance + Credit Sales - Collections - Write-Offs = Ending Balance

+ Recoveries, but then removed when cash is paid (JE Cash / A/R)

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

Allowance for doubtful accounts Rollforward formula

A

Beginning Balance + Bad Debt Expense - Write-Offs + Recoveries = Ending Balance

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

Present Value of a Note (PV)

A

PV = Maturity Value / (1 + r)^n

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

COGS Formula

A

Beginning Inventory + Purchases − Ending Inventory

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

Ending Inventory at Base-Year Cost

A

(Ending Inventory at Current Year Cost) / Price Index

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

New LIFO Layer

A

Ending Inventory at Base Year Cost − Beginning Inventory at Base Year Cost) * Price Index

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

Formula Ending Inventory under Dollar-Value LIFO

A

Beginning Inventory + New LIFO Layer

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

Average Cost Method (for COGS)
Average cost per unit Formula

A

(Total Cost of Beginning Inventory + Purchases) / Total Units Available for Sale

COGS = Average Cost per Unit * Number of Units Sold

Formulas include Beginning Balances + Purchases excl ending balances

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

Ceiling (NRV) Formula

A

Estimated Selling Price − Cost to Complete/Dispose

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

Floor (Under LIFO)

A

Net Realizable Value − Normal Profit Margin

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

Cost - to - Retail Ratio

A

(Cost of Inventory + Cost of Purchases) / (Retail Value of Inventory + Retail Value of Purchases + Markup(Net)

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

Ending Inventory at Retail

A

Beginning Retail Inventory + Purchases at Retail − Sales - Normal Losses - Markdowns

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

Ending Inventory at Cost

A

Ending Inventory at Retail * Cost-to-Retail Ratio

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

Price Index for Dollar-Value LIFO

A

Ending Inventory at Current-Year Cost / Ending Inventory at Base-Year Cost

17
Q

Net Realizable Value (NRV)

A

Estimated Selling Price − Cost of Completion/Disposal