FAR Module 12 Misc Flashcards
T/F
Treasury Stock are examples of cash?
FALSE
T/F
Checking accounts are examples of cash?
TRUE
T/F
Treasury Bills are examples of cash?
TRUE
T/F
Money Market Funds are examples of cash?
TRUE
T/F
Petty Cash are examples of cash?
TRUE
T/F
Trading Securities are examples of cash?
FALSE
T/F
Savings Accounts are examples of cash?
TRUE
T/F
Sinking Fund Cash are examples of cash?
FALSE
T/F
Compensating balances against long-term borrowing are examples of cash?
FALSE
T/F
Restricted cash funds are examples of cash?
FALSE
T/F
Postdated checks for customers are examples of cash?
FALSE
T/F
Available for sale securities are examples of cash?
FALSE
A change from using the percentage of sales method to the aging method is considered what type of change and therefore is treated how
Change in accounting estimate - therefore this change is applied prospectively
What is the entry to set up an allowance for doubtful accounts
Debit bad debt expense
credit the allowance account
What is the entry to write off an allowance
Debit the allowance account
credit accounts receivable
What is the entry to record a recovery under the allowance account
First, reverse the write off:
Debit accounts receivable
credit the allowance account
Second, recognize the cash receipt:
Debit cash
credit accounts receivable
When no number is better than another in a range, what number do you use?
The minimum number
What is the risk of accounting loss?
This is the amount of write off a company would record if any party failed to fully perform
What is off balance sheet risk?
When an accounting loss exceeds the associated assets/liabilities on the balance sheet
T/F
segregated cash accounts can be current or no current assets, depending on the timing
FALSE
segregated cash accounts are never considered current assets no matter what timing is involved. They should be classified as non current assets.
T/F
Always use PV when calculating the liability of a note payable
FALSE
use the face amount if the note matured within one year! If the note matures in greater than one year, then use PV
T/F
you don’t need to do anything with gain contingencies until they are recognized
FALSE
Gain contingencies are disclosed when realized
T/F
whether or not a CD is considered a current asset is based on its original maturity date, not how soon it can be used
TRUE
T/F
an employer only has to accrue a liability for non vesting rights
FALSE
An employer must accrue a liability for vesting rights but does not have to accrue a liability for non vesting rights !
T/F
the FASB ASC 825-10-25-1 per mints the FV election on a contract by contract basis
TRUE
