Formulas

Question 1

Assets =

Answer 1

Liabilities + Equity

Question 2

Net Income/(Loss) =

Answer 2

Revenues - Expenses + Gain - Lossess

Question 3

COGS =

Answer 3

Beg FG Inv
+ Purchases or COGM
= Goods Available for Sale
- End FG Inv

Question 4

COGM 1 =

Answer 4

Beg WIP
+ Sum of Manufacturing Costs
- End WIP

Question 5

COGM 2=

Answer 5

End FG Inv
+ COGS
- BEG FG Inv

Question 6

BEPS=

Answer 6

Inc Avail to Comm SHS/Weighted-Avg Number of SHS Outstanding

Question 7

Income Available to Comm SHS

Answer 7

Net Income (Or Op Income)
- Dividends on Pstock for Current Period, (Cumm Pstock or Declared Non-Cumm)

Question 8

DEPS =

Answer 8

(BEPS Numerator + Effect of Dilutive PCS)/(BEPS Denominator + Effect of Dilutive PCS)

Question 9

Incremental Effect - Pstock =

Answer 9

(Pstock Dividend % x Pstcok Par Val)/PCS

Question 10

Incremental Effect - Bonds

Answer 10

(Bonds Face Amount x Interest Rate) x (1-TR)/PCS

Question 11

Tstock Methods (Options & Warrants) - Assumed Proceeds

Answer 11

SHS x Exercise Price

Question 12

Tstock Methods (Options & Warrants) - Repurchased Shares

Answer 12

Proceeds/Avg Market Prices

Question 13

TStock Increase in BEPS Denominator

Answer 13

SHS Exercised - Repurchased Shares

Question 14

Effective Interest Rate Method - Interest Inc/Exp

Answer 14

Carrying Amount x Effective Interest Rate

Question 15

Premium Amortization

Answer 15

Interest Paid - Interest Expense

Question 16

Discount Amortization

Answer 16

Interest Paid - Interest Expense

Question 17

Equity Method Carrying Amount of Investment

Answer 17

Initial Investment
+ Share of Earnings
- Share of Dividends Received
- Share of Dep Expense (Net Assets in Excess of Carrying Amount)

Question 18

YE A/R Balance

Answer 18

Beg Bal
\+ Credit Sales
- Collections
- Amounts Written-off
- Sales Returns

Question 19

YE Allow for Doubtful Accounts

Answer 19

Beg Bal
+ Bad Debt Expense
- Write-offs

Question 20

Discounting Notes - Total Int Rec Note

Answer 20

Face Amount x Stated Rate x Note Term

Question 21

Discounting Note - Maturity Amount

Answer 21

Face Amount + Total Int Rec

Question 22

Discounting Notes - Accrued Int Rec

Answer 22

Face Amount x State Rate x Time Elapsed

Question 23

Discounting Notes - Bank Discount

Answer 23

Maturity Amount x Bank Discount Rate x Time Remain

Question 24

Discounting Notes - Cash Proceeds

Answer 24

Maturity Amount - Bank Discount

Question 25

Discounting Notes - Carrying Amount

Answer 25

Face amount + Accrued Interest Rec

Question 26

Discounting Notes - Gain/Loss

Answer 26

Proceeds - Carrying Amount

Question 27

Net Total Interest

Answer 27

(Sum of Payments - NPV of N/R

Question 28

Weighted Avg Method (Periodic)

Answer 28

(Cost of Beg Inv + Cost of Purch During Period)/(Unit Beg Inv + Unit Purch During Period)

Question 29

Price Index

Answer 29

End Inv at CY Cost/End Inv at Base Year Cost

Question 30

Depreiciable Base

Answer 30

Historical Cost - Salvage Value - Impairment

Question 31

Straight-Line Periodic expense

Answer 31

Depreciable Base/Estimated Life

Question 32

Declining Balance Periodic Expense

Answer 32

Carrying Amount x Declining Balance %

Question 33

Sum of Years Digits Periodic Expense

Answer 33

Depreciable Base x (Remaining Years/Sum of All years)

Question 34

Usage Periodic expense

Answer 34

Depreciable Basex (units current period/total est units

Question 35

Depletion - Per Unit Depletion Rate

Answer 35

Depletion Base/Total Estimated Recoverable Units

Question 36

Depletion - Periodic Depletion

Answer 36

Units Extracted x Unit Depletion Rate

Question 37

Boot Potential Gain

Answer 37

FV of other asset received +Boot Received - Carrying Amount of Asset Given Up

Question 38

Portion of Assets represented by Boot

Answer 38

Boot Recevied/(FV of other asset received + Boot Received)

Question 39

Boot Gain Recognized

Answer 39

Total Potential Gain x Portion of Asset rep by boot

Question 40

DTA/DTL

Answer 40

(Tax Basis - Carrying Amount) x Tax Rate

Question 41

Pension Expense Formula - Periodic Expense

Answer 41

``` Service Costs + Interest Cost - Expected Return on Assets +/- Amortization of Net Gain/(Loss) +/- Amortization of Prior Service Cost/(Credit) ```

Question 42

Pension Liability Gain/(Loss)

Answer 42

``` Beg Pension Benefit Obligation + Service Costs + Interest Cost + Prior Service Cost - Prior Service Credit - Benefits Paid +/- Gain/(Loss) Liability (Solve For) = End PBO ```

Question 43

Pension Actual Return on Plan Assets

Answer 43

``` Beg FV of Plan Assets + Contributions - Benefits Paid +/- Actual Return on Plan Assets (Solved For) = End FV of Plan Assets ```

Question 44

Pension Liability

Answer 44

PBO - FV of Plan Assets

Question 45

Pension Assets

Answer 45

FV of Plan Assets - PBO

Question 46

Interim Period Tax Expense

Answer 46

= (Estimated effective tax rate x YTD ordinary income) - tax expense recognized in prior interim periods