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FAR MCQ Notes Flashcards

1
Q

What is a transition obligation?

A

A transition obligation is measured as the difference between the accumulated postretirement benefit obligation and the fair value of plan assets at the beginning of the fiscal year for which ASC Topic 715 is adopted. A transition obligation may be recognized immediately in net income of the period of the change, or recognized on a delayed basis as a component of net periodic postretirement benefit cost. If delayed recognition is elected, the transition obligation should be amortized on a straight-line basis over the average remaining service period of plan participants. If the average remaining service period is less than twenty years, the employer may elect to use a twenty-year amortization period.

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2
Q

Per IFRS, what is required to calculate the PV of DBO (PV-DBO)

A

Projected-unit-credit method

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3
Q

When a company elects not to bifurcate a hybrid instrument and accounts for the hybrid instrument at fair value, which method(s) of disclosure are permissIble?

A

If a company elects to use fair value measurement on selected hybrid instruments, the balance sheet disclosure may be presented in one of two ways: as either a separate line item for the fair value and non–fair value instruments on the balance sheet, or as an aggregate amount of all hybrid instruments with the amount of hybrid instruments at fair value shown in parentheses.

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4
Q

Under IFRS reporting, how is presentation currency defined?

A

The currency in which financial statements are presented

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5
Q

Which of the following rates may be used to translate the cash flow statement?

a. Historical exchange Rates
b. Current exchange Rates
c. Weighted-average rates.

A

Cash flow statement may be translated at the rates in effect at the time the transaction occurred (historical exchange rates) or at weighted-average exchange rates if not substantially different.

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6
Q

When a firm elects not to bifurcate a hybrid financial instrument, how should changes in fair value be recognized?

A

On a prospective basis in the current year earnings and future year’s earnings. The difference between the total carrying amount of the components of the bifurcated hybrid financial instruments and the fair value of the combined hybrid instruments should be recognized in earnings for the period.

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7
Q

Will sale of treasury stock at less than cost decrease shareholder’s equity ?

A

NO, journal entry is Debit to cash and Credit to Treasury stock which increases shareholder’s equity. Selling at more or less than cost does not matter.

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8
Q

Which of the following is not a IFRS requirement regarding foreign currency translation?

Nonmonetary items measured at historical cost are translated at the historical exchange rate.

Monetary items are translated at the year-end spot rate.

If the functional currency is the same as the presentation currency gains or losses are reported in profit and loss for the period.

If the functional currency is not the same as the presentation currency gains or losses are deferred to future periods.

A

Option 4 :

Under IFRS, if the functional currency is not the same as the presentation currency, gains or losses are charged to other comprehensive income.

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9
Q

What is a notional amount w.r.t. Derivatives ?

A

Notional amounts are the referenced associated asset or liability that is commonly a number of units such as barrels of oil.

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10
Q

For IFRS reporting purposes, currencies are defined as

A

Foreign, functional, and presentation.

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11
Q

Callahan Auto Parts leases a piece of machinery for its new brake pad division in Sandusky, Ohio. Callahan appropriately accounts for the lease as a finance lease. What information must Callahan disclose about the lease?

A

A general description of the lease, including the residual value of the machinery and the interest rate associated with the lease

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12
Q

Miriam Corporation commonly enters into leases as the lessee of equipment. In Miriam’s disclosures, it must report

A

The aggregate amount of future minimum lease payments and the amount for each of the succeeding five years for finance and operating leases.

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13
Q

Wilburn Corp. signs an agreement to lease land and a building for 20 years. At the end of the lease, the property will not transfer to Wilburn. The life of the building is estimated to be 20 years. Wilburn prepares its financial statements in accordance with IFRS. How should Wilburn account for the lease?

A

FRS provides that because land has an indefinite life, if title is not expected to pass by the end of the lease term, then the substantial risks and rewards of ownership do not transfer. Thus, the lease should be separated into two components. The land should be recorded as an operating lease and the building should be recorded as a finance lease.

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14
Q

On the statement of operations for a nonprofit, nongovernmental hospital, which of the items below is included in the amount reported for “revenue and gains over expenses and losses” (the performance indicator)?
I. Unrealized loss on other than trading securities. The securities are included in unrestricted net assets.
II. Contribution received from a donor which cannot be used until next year.

A

Neither I or II

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15
Q

A not-for-profit voluntary health and welfare organization should report a contribution for the construction of a new building as cash flows from which of the following in the statement of cash flows?

A

Financing Activities

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16
Q

Unrealized gains on investments that are permanently restricted as to use by donors are reported by a private, nonprofit hospital on the
Statement of operations.
Statement of cash flows.
Statement of changes in net assets.
Statement of operations and statement of cash flows.

A

Statement of changes in net assets.

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17
Q

How does GAP define non - exchange transaction per GASB 33 Accounting and Financial Reporting for Nonexchange Transactions ?

A

GASB 33 defines nonexchange transactions as transactions “in which a government gives (or receives) value without directly receiving (or giving) equal value in exchange.” Exchange transactions are transactions “in which each party receives and gives up essentially equal values.” In the case of a property tax levy, the government is receiving value, the right to receive payments from property owners, without directly giving equal value in return.

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18
Q

In accordance with GASB 33, Accounting and Financial Reporting for Nonexchange Transactions, how is each of the following items classified?

Fines
Corporate income taxes

A

Fines Corporate income taxes

Imposed revenue Derived revenue

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19
Q

Revenues of a municipality should be recognized in the accounting period in which they become available and measurable for a

A

Governmental Fund

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20
Q

Which of the following transactions is an expenditure of a governmental unit’s general fund?
Contribution of enterprise fund capital by the general fund.
Transfer from the general fund to a capital projects fund.
Operating subsidy transfer from the general fund to an enterprise fund
Routine employer contributions from the general fund to a pension trust fund.

A

Interfund services provided and used are transactions that would be treated as revenues or expenditures/expenses if they involved organizations external to the government (i.e., routine employer contributions from a general fund to a pension trust fund, internal service fund billings to departments, enterprise funds billing for services provided to the general fund).

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21
Q

Arkansas has a single-employee defined benefit plan covered by GASB 68. What is the amount of liability that should be presented on the state government’s statement of net position related to the plan?

A

The portion of the actuarial present value of projected benefit payments attributable to past periods of employee service minus the pension plan’s fiduciary net position.

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22
Q

Harbor City’s appropriations control account at December 31, year 1, had a balance of $7,000,000. When the budgetary accounts were closed at year-end, this $7,000,000 appropriations control balance should have

A

Been Debited.

Appropriations is a budgetary account which represents the total authorized expenditures for the current period. Appropriations is recorded at the beginning of the period in the budget entry, as a credit, as in the following example:

Estimated Revenues xx
Appropriations xx
Budgetary Fund Balance xx

When the accounts are closed at the end of the period, the budget entry is reversed, and the appropriations account would be debited as follows:

Budgetary Fund Balance xx
Appropriations xx
Estimated Revenues Control xx

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23
Q

What is an imposed revenue ?

A

Imposed nonexchange revenue is derived from taxes and other assessments by governments that are not derived from underlying transactions. Property taxes are examples of such a revenue source.

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24
Q 
The expenditure element "salaries and wages" is an example of which type of classification?
Object.
Program.
Function.
Activity.
A

Expenditure classification by object is based upon the type of items purchased or services obtained. Examples of “Current Operations” object of expenditure classifications are personal services, supplies, and other services and charges. Salaries are an example of classification by object. Function or program classifications provide information regarding the overall purpose or objectives of expenditures (i.e., police protection, sanitation, highways and streets, etc.). Activity classification provides data for calculating expenditures per unit of activity (i.e., street resurfacing).

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25
On the government-wide Statement of Net Position, prepared in accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, internal service fund activities are normally reported in Business-type activities. Governmental activities. Either business-type or governmental activities. Neither business-type nor governmental activities.
Governmental activities.
26
In Leases, remember a fact about Gross Profit
It is not affected by any residual value, whether guaranteed or not
27
How to know if bonds were issued at premium ?
If coupon rate is more than market rate
28
Reporting inventory at the lower of cost or market is a departure from the accounting principle of:
Historical cost.
29
While calculating Book Value, remember to deduct the liquidation value per share for preference share capital
For eg. 300,000 (Eq Cap) + 95000 (Ret Earn) + 100 l (PS) = total owners equity (less ) #1000 PS Multiply by 105 liquidation prefernce / 30000 (# eq shares)
30
Are temporary declines recognized in the quarter in which they occur ?
No They are not. They are recognized in the 4th quarter at the end of the year
31
The Codification requires a reconciliation of the beginning and ending balances of the benefit obligation for both defined benefit pension plans and defined postretirement plans. What items would appear in the schedule related to defined benefit pension plans?
The reconciliation schedule for the benefit obligation related to defined benefit pension plans would disclose both the amounts for service cost and benefits paid. Other items that would be disclosed in this reconciliation schedule include (1) interest cost, (2) contributions by plan participants, (3) actuarial gains and losses, (4) plan amendments, (5) divestitures, curtailments, and settlements, and (6) special termination benefits.
32
Under IFRS, what valuation methods are used for intangible assets?
The cost model or the Revaluation model
33
What are the program revenues on a local government’s government-wide statement of activities?
Program revenues include (1) charges for services, (2) operating grants and contributions, and (3) capital grants and contributions.
34
How is an impairment loss recognized on the financial statements for a cost method equity investment?
In Current Earnings
35
Under IFRS, if the intangible asset’s carrying value is greater than its recoverable amount it is considered to be im­paired. The recoverable amount is
The greater of its net selling price or its value in use.
36
What is formula for net loss as per the Corridor approach ?
Net recognized loss - 10% (higher of PBO or FV of plan Assets) / Avg remaining service period
37
A company using the group depreciation method for its delivery trucks retired one of its delivery trucks due to damage before the average service life of the group was reached. An insurance recovery was received. The net book value of these group asset accounts would be decreased by the
Insurance money recovered as that money would equal the reduction in Net book value (cost - AD)
38
What are the 5 components that constitute a DBP ?
A defined benefit pension plan can have up to five components that must be used to determine net pension cost each year [service cost for the period, plus interest cost on the projected benefit obligation, minus expected return on plan assets, plus prior service cost amortization, and plus (or minus) amortization of actuarial unrealized losses (or gains)].
39
The moving average inventory cost flow method is applicable to which of the following inventory systems?
Perpetual
40
A/R Write Off entry : Bee Co. uses the direct write-off method to account for uncollectible accounts receivable. During an accounting period, Bee's cash collections from customers equal sales adjusted for the addition or deduction of the following amounts: Accounts w/off Increase in A/R balance
Under the direct write-off method, write-offs are credited directly to accounts receivable (AR). No allowance account is used. Under the terms of the question, accounts receivable increased during the year. Increase in AR = sales - cash collections - write-offs cash collections = sales - increase in AR - write-offs.
41
Is DTA created by accrued warranty costs ?
YES
42
Concepts on inventory valuation : | Per ASC 330 Inventory valued using LCM approach
Market value is the replacement cost subject to an upper limit (ceiling) and a lower limit (floor). The ceiling is the net realizable value, which is the selling price less disposal costs. The floor is the net realizable value less a normal profit margin.
43
How are Direct loan origination fees and he loan origination fees charged to the borrower treated in CV of Debt ?
Direct loan origination fees and points are recognized over the loan term and the loan origination fees charged to the borrower are deducted from the principal in calculating the carrying amount Note: Loan origination fees are frequently assessed in the form of points, where a point is 1% of the face amount of the loan.
44
Is "Due from factor" or " Recourse Liab" used to account for probable uncollectible accounts ?
Recourse liability The seller uses a due from factor (factor’s holdback) account to account for probable sales discounts, sales returns, and sales allowances. The recourse liability account is recorded to indicate probable uncollectible accounts.
45
When is a non-monetary transaction not recorded at FV?
A nonmonetary exchange is not recognized at fair value when the fair value is not determinable, the exchange transaction is to facilitate sales to customers, or the exchange transactions lacks commercial substance.
46
``` Which inventory costing method would a company that wishes to maximize profits in a period of rising prices use? FIFO Dollar-value LIFO. Weighted average. Moving average. ```
FIFO assumes the sale of the earliest goods first. With rising prices, the earliest goods reflect the lowest prices. Therefore, cost of goods sold under FIFO is the lowest of the cost flow assumptions. With the lowest cost of goods sold, gross margin and income are the highest among the available cost flow assumptions (LIFO and average being the others).
47
``` Which of the following is an intangible asset that is subject to the recoverability test when testing for impairment? A patent. Goodwill. R&D costs for a patent. A trademark with indefinite useful life. ```
Patent The recoverability test is applied to definite-life intangible assets. The patent is the only definite-life intangible asset listed.
48
How is hedge for foreign currency AFS debt investment classified as ?
The hedge of a foreign currency available-for-sale debt investment is a fair value hedge. Therefore, the change in values of both the investment (hedged item) and the forward contract (hedging instrument) will be reported in current net income.
49
When functional classifications are used by private sector health care organizations, they should be based on
Full Cost Allocations
50
``` Which one of the following expenses would be remeasured using a historic exchange rate? Rent expense. Wage expense. Depreciation expense. Selling expenses. ```
Depreciation expense Under the remeasurement method of converting financial statements from a foreign currency to a reporting currency, most expenses (and revenues, gains, and losses) are converted using the current exchange rate. Expenses related to assets and liabilities converted at a historic rate are an exception - they are converted using a historic exchange rate. Therefore, since depreciation expense does result from an asset (property, plant, and equipment) measured using a historic exchange rate, depreciation expense would be remeasured using a historic exchange rate.
51
A lessee recording monthly lease expense for a short-term lease will determine expense by
Recording the expense as time passes, likely recognizes the expense on a monthly basis.
52
In a lease that is recorded as a sales-type lease by the lessor, interest revenue
Should be recognized over the period of the lease using the effective interest method.
53
Direct financing leases typically have a
Residual value guaranteed by a third-party.
54
Able sold its headquarters building at a gain and simultaneously leased back the building. The lease met the criteria for a finance lease. At the time of sale, the gain should be reported as
No gain Because the lease meets the criteria to be classified as a finance lease, then control of the building has not effectively transferred to the buyer-lessor.
55
``` Which of the following financial statements would provide information about the ongoing revenues and expenses associated with a voluntary health and welfare organization? The statement of activities. The statement of cash flows. The statement of functional expenses. The statement of financial position. ```
The statement of activities
56
What is the appropriate characterization of the net assets of a nongovernmental not-for-profit organization?
Residual Interest
57
When converting financial statements from a foreign currency to a reporting currency using translation, how is common stock translated ?
Using Historic Exchange rates
58
If shares are issued to acquire land / building and allocate that share - consideration in ratio of the appraised values of land and bldg respectively
NOTE
59
Is demolition of old building capitalized to cost of new building ?
NO Any demolition to clear the land to get the land ready for construction of the new building is getting the land ready for use and is capitalized to the land!
60
What are the conditions for interest capitalization?
The interest capitalization period begins when, and continues as long as, all three of the following conditions are met: Expenditures for the asset have been made. Activities necessary to get the asset ready for its intended use are in progress. Interest cost is being incurred.
61
How is Interest capitalized relating to the land treated ?
Interest capitalized relating to the land becomes part of the cost of the building because the land is being developed together with the building. Even though land itself is not depreciable, the interest cost connected to the land is capitalized as part of the cost of the building and depreciated.
62
If land is not being used in business and held for resale and it is reported at
Fair Value
63
The Expenditures control account of a government is credited when
Temporary accounts are closed at the end of the year.
64
The effective tax rate should reflect anticipated
investment tax credits, foreign tax rates, percentage depletion, capital gains rates, and other available tax planning alternatives.
65
What is the specific characteristic of moving average ? ?
The cost per unit changes with every purchase
66
In accordance with ASC Topic 255, the Consumer Price Index for All Urban Consumers is used to compute information on a
Constant dollar basis
67
``` Examples of financial instruments with off-balance-sheet risk include all of the following except Outstanding loan commitments written. Recourse obligations on receivables. Warranty obligations. Futures contracts. ```
The value of derivative financial instruments is typically derived from the value of an underlying asset or is tied to an index. As the price of the underlying asset changes, the price of the derivative changes. Outstanding loan commitments written, recourse obligations on receivables, and futures contracts are all tied to an asset account. Warranty obligations are the result of the sale of goods.
68
What is a non-monetary asset
Per ASC Topic 255, nonmonetary items include assets and liabilities whose amounts may change over time in terms of a monetary unit (e.g., the U.S. dollar). Examples of nonmonetary assets and liabilities included inventory, property, plant, equipment, and obligations under warranties. Accumulated depreciation is a nonmonetary item because it relates to equipment.
69
Under ASC Topic 350, goodwill should be tested periodically for impairment
At the operating segment level or one level below. Goodwill is allocated to reporting units which are operating segments of the business or one level below. Goodwill is also tested for impairment at the level of the reporting unit.
70
The main pronouncements published by the SEC are
the Financial Reporting Releases (FRR) and the Staff Accounting Bulletins (SAB).
71
How is equipment purchased for current and future periods treated in accounting ?
It should be allocated to the periods in which the assets are used.
72
Which expenses are R&D expenses ?
1. Equipment purchased for current research and development projects should be expensed as R&D. 2. Research and development salaries, and material and labor costs for prototype products are also classified as R&D and expensed.
73
How are gains and losses treated for H-T-M debt securities ?
Unrealized gains and losses on held-to-maturity securities are not reported. Gains on securities sold should always be included as realized gains in the income statement of the applicable period. A permanent decline in value requires that the impaired security be written down to fair value. The amount of such a write-down is included in earnings as a realized loss.
74
What is the revaluation model ?
The revaluation model recognizes increases in other comprehensive income for the period and decreases in profit or loss for the period. The exception is if the increase represents the reversal of a previously recognized decrease of the same asset in which case the increase would go directly to profit or loss.
75
Per IFRS, when can development expenses be capitalized ?
Capitalize development costs if the following criteria are met: (1) technological feasibility of completing the asset for use or sale has been achieved; (2) the entity intends to complete and use or sell the asset; (3) the entity has the ability to use or sell the asset; (4) the entity understands how the asset will generate probable future economic benefits; (5) technical, financial, and other resources are available to complete development of the asset; (6) the entity has the ability to reliably measure the expenditures.
76
When computers are ordered by the city controller's office, the purchase order should be recorded in the General Fund as a debit to
Encumbrances
77
Careful : Add annual amortization as interest expense in the numerator while calculating DEPS
NOTE
78
For purposes of nonmonetary exchanges, the configuration of cash flows includes
The risk, timing, and amount of cash flows of the assets
79
The fair value of the advertising services provided can be reliably measured by reference to a nonbarter transaction for similar advertising with a different counterparty
NOTE
80
How much SAR entitle the holder to receive ?
The SAR entitles the holder to receive cash equal to the excess of the market price of the stock on the exercise date over the market price on the grant date. If rights are exercise immediately then the compensation expense does not need to be amortized
81
What is dilutive effect on EPS mean ?
Means it decreases EPS | Conversely anti-dilutive means it increases EPS
82
Is Residual equity transfers out equal residual equity transfers in considered an objective of a governmental unit ?
No Residual equity transfers are nonrecurring or nonroutine transfers of equity between funds (GASB Codification 1800.102). These transfers occur within one accounting period and do not support interperiod equity as an objective of financial reporting.
83
What is a Special Revenue Fund ?
Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific current purposes. The capital facilities resource funding would be recorded in a capital projects fund. The resources for creation of a permanent trust would be recorded in a permanent fund.
84
What does "accrued interest receivable" refer to ?
The term "accrued interest receivable" refers to the cash amount of interest due. The cash amount of interest due is based on the contractual interest rate and face value. The loan origination fee is a way of increasing the effective interest but it does not affect the cash interest component.
85
What does Overstating of Y2 Ending inventory affect ?
It Overstates Y2 Income and Y3 Beginning Retained earnings
86
Where are Discretely presented component units presented ?
Discretely presented component units are presented in the Government-Wide Financial Statements only and not in the fund-level statements.
87
How are Temporary declines in inventory market values treated?
Temporary declines in inventory market values are not recognized. Only declines that are apparently permanent or other than temporary need to be recognized.
88
For contingent issue agreements requiring passage of time or earnings threshold that is met, before issuing stock, these should be
included in computing DEPS BUT not in computing EPS
89
How is the finder’s and consultant’s fees incurred while issuing stock treated ?
Expensed
90
How is SEC registration costs while issuing stock treated ?
It is debited to APIC-CS
91
What does Division of Corporate Finance oversee ?
The Division of Corporate Finance oversees the compliance with the securities acts and examines all filings made by publicly held companies.
92
A firm is applying international accounting standards to its defined-benefit pension plan and has pension gains and losses. How will it treat it ?
Pension gains and losses are recognized immediately and in full in accumulated other comprehensive income. However, they are not subsequently amortized to earnings.
93
How is ARO valued ?
The asset retirement obligation (ARO) is recorded at its fair value in the period in which it is incurred. Subsequently, it is adjusted for revisions in estimates and the passage of time.
94
Are buildings considered infrastructure assets ?
NO
95
What is SFAC7?
SFAC 7 provides a framework for using future cash flows as the basis for accounting measurements at initial recognition or fresh-start measurements and for the interest method of amortization. FASB limited SFAC 7 to measurement issues (how to measure) and chose not to address recognition questions (when to measure). SFAC 7 introduces the expected cash flow approach, which differs from the traditional approach by focusing on explicit assumptions about the range of possible estimated cash flows and their respective probabilities
96
How is pledging of A/R to get a loan or as a collateral treated ?
A general assignment of receivables is another term for pledging AR, and thus should be disclosed parenthetically or in the notes to the financial statements
97
How is annual amortization of capitalized cost calculated as ?
Per ASC 985, the annual amortization of capitalized software costs shall be the greater of (1) The ratio of the software’s current sales to its expected total sales, or (2) The straight-line method over the economic life of the product.
98
How is collection of a note receivable from a related party classified as ?
Investing activity
99
How to calculate amortization for costs that are to be capitalized ?
Amortization will be higher of the greater of amount calculated under SLM or volume of output approach. Volume of output approach = Current sales / Current sales + total estimated sales * CV of amortizable assets
100
What are the only securities classified as FVTPL for IFRS ?
The held-for-trading securities are the only securities classified as FVTPL and FVTPL remeasurement gains and losses are recognized in earnings of the period.
101
How does Codification 330-10-30 treat fixed overhead rates ?
It assumes normal activity to be used in denominator. Also costs like idle facility expense, excessive spoilage, wasted materials etc. should be treated as current period costs. It invokes "definition of asset" not matching principle
102
How does perpectual LIFO differ from periodic LIFO ?
In a year of steadily rising prices, perpetual LIFO yields a lower COGS than periodic LIFO
103
What the J/E for recording loss on holding inventory at year end using direct method and indirect method ? Say Total cost = 30,000 and total market value - 27 K
Direct Method: COGS Inventory Indirect Method : Holding Loss Allowance to reduce inventory
104
Which cost flow assumptions use which inventory valuation methods ?
FIFO and Wgt Average - use LC-NRV | LIFo and Retail Inventory method - use LC-M
105
What is the rule for interest capitalization during construction ?
Assets which "qualify" for interest capitalization are those constructed or otherwise produced for an enterprise's own use and those intended for sale or lease that are discrete projects. The capitalization period shall end when the asset is substantially complete and ready for its intended use.
106
Which account is reduced when stock is retired ?
Additional paid-in capital is reduced when stock is retired because the additional paid-in capital from treasury stock transactions is closed. Retained earnings can never be increased through transactions with owners, nor can income be affected by such transactions.
107
Are Beginning inventory and net markdowns included in C/R computation under DV LIFO method ?
DV LIFO retail uses the FIFO (not LCM) cost-to-retail ratio. Under LIFO, a layer added during a period should reflect only the cost and retail amounts pertaining to that period. Thus, beginning inventory amounts are not used in calculating the ratio. Also, because LIFO may contain inventory layers for several preceding periods, excluding net markdowns is not an effective way to accomplish the LCM valuation objective. Thus, net markdowns are included in the cost to retail computation.
108
How is common stock of combined entity calculated in a business combination ?
In a business combination, the common stock account of the combined entity is the number of shares outstanding multiplied by the par value of the stock.
109
What is accounting equation for change from accrual basis to cash basis & vice versa ?
Accrual to cash = Change in Liab - Change in Assets Cash to accrual = Change in Assets - Change in Liab
110
How is compensation expense calculated for stock compensation plans?
Total compensation expense is computed as the excess of the fair value of the equity instrument over the amount contributed by employees
111
What are the 2 required schedules by GASB for pension trust funds ?
1. Schedule of changes in Net Pension Liability | 2. Schedule of employer contributions
112
What are the key ratios presented in Schedule of changes in net Pension Liability ?
1. Funded ratio (ratio of plan fiduciary net postion / Total pension liability) 2. Net pension liab (asset) as a % of covered payroll

CPA notes (3 decks)

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