FAR Review Day 1 Flashcards
Everything you need to know about stock dividends
Small vs. Large. You always fucking forget that. It is small if it is percentage of shares outstanding is less than 20. If it is a small one the fair value is capitalized. If it is a large one than you use the par value. Come on man.
When you have PARTICIPATING SHARES BETWEEN COMMON AND PREFERRED SHAREHOLDERS WHAT DO YOU ALWAYS DO FUCKING WRONG?
You have to take the percentage of common stock in the beginning as well as the end to find the amount that they have. So if the preferred shareholders only takes 9 and is only 1/3 of the stock outstanding the common shareholders take 18 and THEN YOU GO DO WHAT YOU THINK YOU”RE SUPPOSED TO DO YOU FUCKING IDIOT.
How are they going to trick you with the statement of activity and program services?
What you are going to do is think that you need to do something to get to Net Income because that’s common sense but really they are just talking about the expense part of it.
What are the three expense classifications in the statement of activities for NFP?
There isn’t three you retard. Program and Support.
What are the three expense classifications in the functional activities statement?
Program, Management, and Fundraising.
Formula for Accretion Expense because Becker doesn’t give it to you which is fucking hysterical
Beginning ARO (Fair Value not the CV, you’re probably going to get that wrong anyways) X risk adjusted expense
Name the components of the operating activities section in proprietary fund SoCF?
Cash inflows for goods and services
Cash outflows for payments to vendors
Cash inflows from interfund in LIEU OF TAXES
All ones that don’t meet the definition for something else
Name the components of the investing activities section in proprietary fund SoCF?
Cash inflows and outflows for loans to others
Cash inflows and outflows for equity transactions
Name the components of the capital and related financing activities section in proprietary fund SoCF?
Cash inflows from issuing debt tied to capital assets
Cash inflows from capital grants
Cash activity related to special assessments associated with capital asssets
Name the components of the noncapital financing activities section in proprietary fund SoCF?
Cash receipts from grants and subsidies
Cash from property taxes
Operating transfers
What are the four bug a boos for the direct method of the statement of cash flows and their components?
Cash received from customers (ORIGINAL INFLOW):
Revenues (start), Receivables, and Unearned Rev.
Cash paid to vendors (ORIGINAL OUTFLOW):
COGS(start), Inventory, A/P
Salaries and Wages (ORIGINAL OUTFLOW):
Increase and Decrease in Wages Payable
Other Operating Expense (ORIGINAL OUTFLOW):
Oper. Exp (start), Prepaids, Accrued Liabilities
In an operating lease where the amount of rent increases in the 5th year what happens to rent and interest expense?
NOTHING YOU STUPID FUCK. RENT IS THE SAME YOU’VE DONE CALCULATIONS LIKE THAT 5000 TIMES WHY THE FUCK CANT YOU REMEMBER ANYTHING. WHY THE FUCK CAN’T YOU JUST PUT IT TOGETHER
Where do you classify an increase in a capital lease payable in the SofCF?
You don’t. This is a disclosure requirement only. Don’t get it confused with a government and think it might be a capital related financing thingy.
Where do proceeds from restrictions for PROPERTY go in the SoCF for a nongovernmental NFP?
Financing Activities section. This is the biggest trick they can throw at you on the exam so expect it because it is usually investing when you are talking about commercial SoCF.
What do you need to remember for intercompany journal entries relating to equipment and depreciation?
You were right that you need to revalue the equipment back to it’s original fair value and adjust depreciation expense to what it should have been normally, but you forgot that the parent gets rid of all A/D when he sells the asset in the first place so you need to adjust that to what it SHOULD BE NOW. Also with the A/D you need to find the CARRY VALUE AT TIME OF SALE to calculate the actual gain on the sale to the sub.
