financial notes-Restudy these Flashcards
goodwill
Why is it important to investigate discrepancies between financial statement notes & source date regarding goodwill impairment ?
To ensure accurate valuation of intangible assets
To assess the percentage of a company’s assets financed by debt, which ratio would you use?
Total Debt Ratio is used it provides insight into the company’s leverage
What should be done when the selling price of an asset held for sale is renegotiated to a value higher than its carrying amount?
No adjustment to the carrying is necessary
A company with Debt-to-Equity Ration of 0.5 indicates what about the company’s financing structure?
That it has twice as much equity as debt
Which statement is true regarding accounting treatment of true sale of receivables?
The receivables are removed from the balance sheet
For financial statement prepared under a special purpose framework related to contractual agreement, what title for this statement summarizes the financial status of year-end?
Contractual Basis Balance Sheet, this title is specific & indicated exactly what is happening provides clarity about the framework being used
In th five-step model, what does indentifying performance obligations in the contract entail?
Determining the activities that constitute a single performance obligation. This is the second step in the model. Indentifiying performance obligations involves determining the activities or goods/services promised in the contract that are distinct.
Settlement of ARO(Asset Retirement Obligation) what is journal entry?
Debit Asset Retirment Cost
Credit ARO Liability
What is a Simple Capital Structure?
Common Stock, Preferred Stock, Debt Outstanding
What are the government funds ?
General, Special, Capital Project, Debt Services & Permanent Funds
What Measurement Focus does Governmental Funds use and Basis of Accounting?
Current financial of measurement & Modified Accrual Basis of Accounting-No expenses are recognized -Expenditures are decreased only, they are measurable when goods or services acquired, the related liability is recognizable when incurred.
What Measurement Focus does Government Wide Funds use and Basis of Accounting?
Economic Focus of measurement & the Accrual Basis of Accounting-Expenses are recognized when goods or services are used or consumed- Encumbrances (Budgetary cost estimates) .
What are the government-wide funds?
There are two Proprietary and Fiduciary- Proprietary consists of Enterprise funds & Internal Service Funds . Fiduciary consists of Trusts -Pension, Investment, Private-purpose, Custodial Trusts.
