FAR Y201-216 Flashcards
When is it appropriate for a NFP entity to record contributed services?
Svcs create/enhance nonfinancial assets, specialized skills, entity would have purchased
Name the 3 types of financial hedges.
Cash Flow Hedge, Fair Value Hedge, Foreign Currency Hedge
Define callable preferred stock.
Preferred stock that can be repurchased by the entity at a certain price
What are the minimum requirements to be considered and operating segment?
Revenues & exp’s, chief decision maker must evaluate segment, financial info can be broken out
What is the difference between and ordinary annuity and an annuity due?
Ordinary (in arrears)- due at end of period, Annuity Due-due at beginning of period
Can a partner’s profit percentage be different from the partner’s loss percentage?
Yes, if the partnership agreements describes such an arrangement
Describe the LIFO conformity rule.
If LIFO is used for taxes, it must also be used for books
Define a business combination.
A transaction where an entity obtains control of another. Gen rule: >50% of voting stock
When is the current rate method used to translate foreign currency?
When the functional currency is deemed to be the foreign currency
What types of assests are depleted?
Natural resources
Liabilities assumed by a partnership are recorded by the partnership at what amount?
Present Value
What is the focus of the Governmental Funds
Current Financial Resources Focus-They don’t record Fixed Assets or LT Debt on the Fund F/S
Name the only authoritative source of GAAP.
The Accounting Standards Codification (ASC)
Available-for-sale securities are carried at what amount on the Balance Sheet?
Fair Market Value
How is basic earning per share calculated?
(Net Income - CY Pref Stock Div) // CY WEIGHTED AVG CS outstanding
