FAR Review Day 2 Flashcards
Royalty expense will always be the larger of what?
Minimum royalties (given) or a % of sales
What do current cost financial statements do?
Report holding gains for pretty much everything I guess. Can’t even remember the page at this point.
What is monetary and what is non monetary?
Definitely going to try and trick you with the stocks and bonds. Bonds and receivables are actually monetary while stocks or common equity is non-monetary. it makes no sense when you compare it to the rest of the book so its a great question for them to fuck you on.
How are they going to trick you with a depreciable base question?
They will say that it was transferred at a certain carrying value so that everything you have learned, everything they have taught you, is wrong. You have to take the original consideration paid - sv to get the depreciable base because it was probably TERANFSRERRED to the new owners
Program Revenues mnemonic
SOC
Services
Operating Grants and Contributions
Capital Grants and Contributions
What happens to operating cash flows, direct method when you issue refunds to the customers BUT it is per the companies policy?
hahaha you got confused in the wording, but what else is new. this is a cash outflow. also remember that interest income is a cash inflow for CFOs too even though you know that it should be on a financing thing.
