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FAR Frame, Overview, Statements > Frame, Overview, Statements > Flashcards

Frame, Overview, Statements Flashcards

1
Q

General rule converting from Cash to Accrual

A

Add beginning liability balances and subtract ending liab balances: also subtract beginning asset balances and add ending asset balances

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2
Q

A $20 AR decrease implies that cash received on account was $20 ……….. Than accrual sales. Therefore Cash basis income is $20 …….. than accrual.

A

Greater

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3
Q

A $16 increase in AP leads to a ……. In cash basis income versus accrual because ……

A

Increase, because it implies that more inventory was purchased and included in accrual cost of goods sold than was paid.

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4
Q

Collection of a note receivable from a related party is what kind of activity in the Cash flow statement

A

Investing

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5
Q

What are inflows of economic resources only

A

Revenues…. Purchase discounts are netted against purchases not sales the recovery of accounts written off is not revenue it is an adjustment to the allowance for uncollectable accounts.

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6
Q

A dividend payment is what kind of activity on the cash flow statement?

A

Financing

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7
Q

Does the income statement contain all items of revenue expense gain and loss?

A

No this is included in the statement of comprehensive income.

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8
Q

The total amount included in cash or in cash equivalents in the statement of cash flows must be the same title and groups of accounts sed in the statement of financial position T or F

A

True

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9
Q

Name the 3 GAAP Principals

A

Recognize- when
Measure - how
Disclosure- additional info

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10
Q

Name the Statements that must comply with GAAP

A

BS statement of share equity
statement of cash flows
IS
Statement of Comp Income

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11
Q

The first three steps in the FASB standard setting process

A

1 add to agenda
2 research and issues DM
3 public hearing

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12
Q

The Second three steps in the FASB standard setting process

A

1 Issue exposure draft
2 modifies exposure draft
3 finalize and issue ASU

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13
Q

Are FASB concepts AICPA issues PAPERS and IFRS authoritative GAAP?

A

NO

IFRS is accepted by the SEC but not GAAP

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14
Q

Cash before earned is a….. Cash before exp is a…..

A 
Deferred Revenue (liab)
Deferred Exp (asset)
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15
Q

Rev before earned is a…. Exp incurred before cash is paid is a……

A 
Accrued Rev (asset)
Accrued Exp (liab)
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16
Q

LT Receivables measure in?

A

PV of future cash flow

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17
Q

Available for sale securities measure in?

A

Current MV

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18
Q

Equipment measure in?

A

Historical cost unless liquidation is taking place

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19
Q

Warranty Obligations measure in?

A

Net realizable value or settlement rate

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20
Q

ST payable measure in?

A

Historical Cost

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21
Q

A/R measure in?

A

Net realizable value or settlement rate

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22
Q

Bonds payable due in 10 years measure in?

A

PV of future cash flow

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23
Q

Trading Securities measure in?

A

Current MV

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24
Q

What kind of entry is this?
Dep exp
Acc dep

A

Defferal

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25
Q

What kind of entry is this?
Int Rec
Int Rev

A

Accrual

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26
Q

What kind of entry is this?
Rent Exp
PPD Rent

A

Defferal

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27
Q

What kind of entry is this?
Unearned rent
Rent Rev

A

Defferal

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28
Q

What kind of entry is this?
Wages Exp
Wages Payable

A

Accrual

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29
Q

Statement of Comp Inc reports what?

A

Non owner changes to equity over a pd of time.

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30
Q

Fasb Codification official name?

A

ASC accounting standards code

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31
Q

Are ASU’s GAAP?

A

Not GAAP but how updates to GAAP are communicated.

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32
Q

How is the codification organized?

A

Areas-topics-subtopics-sections-subsections-paragraphs

Sections are standardized.

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33
Q

What happens to accrual vs cash sales when A/R decreases

A

Accrual sales declines

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34
Q

How to calculate the amount of insurance left in PPD?

A

Expense for the year-Beginning+Left in PPD

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35
Q

Which accounting characteristic of information allows users of financial statements to generate predictions?

A

Relevance because this term captures predictive value.

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36
Q

What cost basis is used for Equipment when a firm is in liquidation?

A

Net Realizable value. only the amount that will be recovered because going concern no longer applies which is why Historical cost was in place before liquidation.

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37
Q

According to the conceptual framework the usefulness of providing information in financial statements is subject to the constraint of?

A

Cost- Benefit. When the cost of the information exceeds the benefit it should not be reported even if useful!

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38
Q

When a parent and subsidiary relationship exists consolidated financial statements are prepared in recognition of what accounting concept?

A

Economic Entity.

consolidated fin statements are trying to account for the economic entity that comprises more than one legal entity.

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39
Q

Conceptual Framework

A

Guides the standard setting process based on the over riding decision of financial reporting. Decision making. Has two primary and four enhancing characteristics.

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40
Q

What are the Primary Characteristics of the Conceptual Framework?

A

Faithful Representation and Relevance.

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41
Q

What are the components of the primary characteristic to Conceptual framework of Faithful Representation?

A
  1. Free from error
  2. Complete
  3. Neutral
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42
Q

What are the components of the primary characteristic to Conceptual framework of Relevance?

A
  1. Predictive Value
  2. Material
  3. Confirmatory Value
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43
Q

What are the enhancing characteristics of the conceptual framework?

A
  1. Comparable
  2. Verifiable
  3. Timely
  4. Understandable
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44
Q

What are the 4 accounting assumptions?

A
  1. entity- separate and distinct
  2. going concern- indefinite life
  3. unit of measure- measured in a stable monetary unit no inflation
  4. Time period- life broken to frames such as yr qtr month
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45
Q

What are the 4 accounting principles?

A
  1. Rev Recognition- wen realized earned and recorded.
  2. Exp Recognition- matching principal must be in time pd with rev generated.
  3. measurement- value that we record normally cash equivalent
  4. Full disclosure- foot notes
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46
Q 
Measurement Info:
Land
PP&E
AR
Inventory
Bonds
Investments
A 
Historical Cost
Amortized Cost
Net realizable value
replacement cost
net present value
fair value
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47
Q

What are the two ways to use Cash Flow for Present Value?

A
  1. Discounted Cash Flow: CF value using the risk adj rate

2. Expected Cash Flow: Probability weighted CF discounted using a risk free rate.

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48
Q

How do you calculate estimated FV?

A

summation of diff is $ times probability times rate equals $ then add if more than one and that is the FV.

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49
Q

Current Asset

A

12 months or operating cycle whichever is LONGER

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50
Q

NCA=

NCL=

A

Intangibles

bond, pension

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51
Q

Retained Earnings=

A

NI-Dividends

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52
Q

Income Statement Order

A

Revenues, Expenses, G&L

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53
Q

Net Income=

A

Sales-COGS=GP-op exp-G&l- interest=Income from contin ops b4 tax - inc tax= income after tax -discontinued-extraordinary=NI

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54
Q

Statement of Comprehensive income=

A

NI+other comp inc

EX: unrealized gl for AFS securtities pensions currency trans and derivative transactions

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55
Q

Operating Activity Examples

A

Sale of trading sec, dividend income, cash from customer, interest income, pay suppliers, purchase trading securities, interest exp, other op exp, payroll, inc taxes, lawsuits

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56
Q

Investing Activity Examples

A

Sales PPE just cash, Sale debt and equity sec, collect loan principal, purchase PPE just cash part, purchase debt and equity sec, maturity and AFS, Sale of patent, lending, purchase patent, loans to other

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57
Q

Financing Activity Examples

A

Sale of Own stock, proceeds from borrowing(bond, notes, etc), repurchase own stock (treasury stock), paying back lenders only principal, payment of dividends

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58
Q

Cash Flows presentation options

A

Direct- presents by classes and uses shows rec and paid

indirect- presents by adjusting accrual NI to op cash flow

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59
Q

Indirect Cash flow method conversion Equation for NI and Sales

A 
#Cash=#L+#E-#other assets
You must add back any Non Cash exp:dep,loss,amort and subtract any non cash gains
Based off of Change in assets = change in liabilities plus change in owners equity
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60
Q

Indirect Cash flow method conversion Equation for expenses and Sales/ NI

A

Exp= - increase in liab + increase in assets

Sales & NI= + increase in liab - increase in assets

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61
Q

Increase in A/P implies what related to COGS

A

That more COGS taken from sales on accrual basis leading to higher cash sales when compared

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62
Q

Who decides reporting ways

A

Parents even if the sub differs the parent can report how they chose for their purposes

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63
Q

Large accelerated filer for form 10 Q

A

Large Accelerated= 700 mill or more

They have 40 days

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64
Q

Ratio Purpose: Liquidity / solvency

A

ability to meet maturing obligations

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65
Q

Ratio Purpose: Operational

A

Efficiency of operations

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66
Q

Ratio Purpose: Profitability

A

operational results

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67
Q

Ratio Purpose: Equity

A

sources of equity

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68
Q

ROA

A

NI / Avg total asset

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69
Q

Profit Margin

A

NI / Sales

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70
Q

Total Asset TO

A

Sales / Avg total asset

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71
Q

Short term liquidity ratios

A

CR, WCR, QR

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72
Q

Long term solvency

A

Debt to equity, interest coverage

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73
Q

ROE

A

NI / Ave share equity

this considers how is financed

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74
Q

Leverage

A

Avg total asset / avg share equity

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75
Q

Profit Margin

A

NI / Sales

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76
Q

Asset Turnover

A

Sales / total average assets

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77
Q

WC

A

CA - CL

If positive CR will be greater than 1
If negative CR will be less than 1

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78
Q

CR

A

CA / CL

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79
Q

Acid/quick Ratio

A

cash + AR + mark sec / CL

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80
Q

Times Interest Earned

A

NI + int exp + tax exp / Int exp

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81
Q

AR Turnover

A

Net credit sales (or use) / Avg AR (must be net AR)

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82
Q

days in Receivable

A

365 / AR Turnover

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83
Q

Inventory Turnover

A

COGS / Avg Inv

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84
Q

days in Inventory

A

365 / Inv turnover

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85
Q

Changes in CA and CL to Ratios

A

increase CA only = higher wc
increase CL only = lower wc
if wc greater than 1 = increases in ca and liab decrease wcr decreases increase wcr
if less than 1= increase then increase and decrease then decrease

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86
Q

EPS (profitability ratio)

A

NI - Pref div / weighted avg common shares out (common stock plus RE avg) Past info

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87
Q

Price Earned Ratio

A

Stock price per share / EPS

Future info

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88
Q

Dividend payout ratio

A

DPS / EPS

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89
Q

CGS

A

BI + purchases - end inv

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90
Q

Debt to equity leverage

A

L/E is L times E
E/A is financed by
L/A is financed by

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91
Q

What statements are included in personal fin statements

A

BS (stmt fin pos)
Statement of changes in NW (NW= CA-CL)
(BNW +- #in A+-# in L= ENW)
Measure items at current value and use accrual basis

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92
Q

Value of life insurance

Value of Securities

A

Cash value - loans against ins

Market quote current

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93
Q

Inc Tax provision equation

A

Tax rate X(CV of A- CV of L- CV tax basis)

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94
Q

How are liab valued on personal fin stmts

A

lower of settlement value or liab

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95
Q

Private Company Council (PPC)

A 
Little GAAP anything not public
Subsidiary is always public if parent public
Goodwill amort over 10 yrs
Hedge only swap diffs
intang not requ to disclose
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96
Q

Liquidation of Liab

A

Recorded in compliance with GAAP do NOT assume these will leave

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97
Q

IASB Structure

A

Monitoring board- oversees all org involved in setting IAS formal link btw IFRS and public.
IFRS Foundation- contains trustees on 3 yr term most important appoints members of the council trustees provide oversight
IFRS Interp comm- aids in interp and sees issues appointed by IASB
IFRS Adv Council- Appointed by IFRS reps diff countries and committees

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98
Q

IASB Goal

A

Develop single set of standards globally accepted and promote acceptance.

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99
Q

IASB Info

A

Standard setting body no enforcement power replaced the IASC in 2001

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100
Q

ASAF

A

All over the world simply helps with input on standards

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101
Q

Hierarchy of International

A

Mont board (accountibility)-found trustees (governce and oversight) -foundation -IASB (standard setting) -interp commitee

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102
Q

Hierarchy in using IAS

A
  1. IFRS
  2. Definition, criteria, look to frame
  3. other countries standards
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103
Q

SME’s are

A

Small and medium sized entities that are not publicly traded can use for 3 years

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104
Q

IFRS Standard Setting Process

A

Research - discuss paper - proposal - Exposure Draft - Publish IFRS - impl review

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105
Q

Primary and Secondary Characteristics under GAAP and IFRS

A

Faithful Rep- Complete, neutral, free from error

Relevance- predictive value comfirmatory value material

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106
Q

Enhancing Characteristics GAAP

A

Comparable Verifiable Timely understandable

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107
Q

IFRS Assumptions

A

Going concern

Accrual

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108
Q

IFRS General Purpose Fin Statements

A

Bs, Is, Stmt comp inc, stmt cas flow

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109
Q

Diff between Fin statements

A

IFRS requires comp periods only 1 GAAP doesnt but SEC does so both have.
Change in equity IFRS must be in separate Stmt not footnote
Extraordinary not allowed
DPS is a required disclosure
IFRS permits reval of PPE through OCI must go through OCI not NI and per share measures on comp inc is not prohibited.

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110
Q

Stmt of Cash Flows under IFRS:

Interest Paid

A

Operating or Financing

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111
Q

Stmt of Cash Flows under IFRS:

Interest Received

A

operating or investing

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112
Q

Stmt of Cash Flows under IFRS:

Tax Paid

A

operating or inv or fin ( if with specific item)

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113
Q

Stmt of Cash Flows under IFRS:

Dividend Received

A

operating or investing

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114
Q

Stmt of Cash Flows under IFRS:

Dividend Paid

A

Operating or Financing

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115
Q

Stmt of Cash Flows under IFRS:

Cash and Equivalents

A

May include bank overdraft GAAP doesnt allow that unless netting allowed.

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116
Q

What accounting methods can be used for Income Tax Basis

A

Modified Cash

Accrual

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117
Q

On personal Fin Stmt how should est inc taxes in excess of cv of assets be reports in stmt fin condition

A

between liab and NW

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118
Q

IASB Parent to ?

A

IFRS Foundation

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119
Q

Does the IASB have enforcement power?

A

NO

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120
Q

In IASB framework Income is defined as

A

increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liab that lead to increases in equity other than those relating to contributions of equity.

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121
Q

Defensive interval is a measurement of?

A

how long available cash and highly liquid assets can support normal cash requirements.
= Quick assets / daily oper expenses

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122
Q

Converting Cash to Accrual Equation

A

= - BA + EA + BL - EL

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123
Q

Change in estimate is treated?

A

Prospectively

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124
Q

Accounting Error Requires

A

A prior pd adjustment

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125
Q

A change in reporting entity requires

A

all prior periods to be restated

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126
Q

Unacceptable Acct Principle

A

Error

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127
Q

What do you do when change in principle and estimate are unseperable

A

assume estimate and report in pd of change and prospectively

128
Q

Sum of years digits equation

A

yrs rem at beg of ye/ og yrs(ogyrs+1)/2

129
Q

What type of activity is a dividend pmt

A

Financing

130
Q

Governmental Closing Entry

A

DR:app
CR:expend
CR: encumb
CR: bud fund bal

131
Q

Where is acc other comp inc reported?

A

Stock equity section of BS

132
Q

Summary of accting policies should include

A

ALL methods and principles

133
Q

Purpose of Comp Inc Stmt

A

Report a measure of overall enterprise performance

134
Q

How do we get FV when no principal market exists

A

market with lowest est transaction fees is deemed most advantageous and gives us FV

135
Q

Extraordinary losses are shown net of ?

A

Income tax so

loss-(loss*tax)

136
Q

G&L from extinguish of debt is reported where?

A

IS

137
Q

Fv is based on?

A

Price received to sell an asset

138
Q

Income approach determines FV by

A

future cash flows of assets

139
Q

8-K shows what?

A

Information on material events

140
Q

10 Q is

A

Reviewed and not audited

141
Q

Purchase discount account

A

contra account not related to net sales

142
Q

Installment sales rev is calculated by

A

amount received in that year. GP is that amount times GP %

143
Q

Int exp on borrowing

A

$x full % rate x # month passed/12

144
Q

GP

A

Net sales- COGS

145
Q

Principle change gets what kind of application

A

Retrospective

146
Q

Dividends pd on CS do not affect what?

A

Comprehensive Income

147
Q

Is TS and surrender value of ins an asset?

A

TS- NO

Surrender- Yes

148
Q

Unreal G&L for A for S recognition

A

reported in OCI till sold then reported in NI so affect on OCI becomes zero at sale

149
Q

NI from RE #s requires

A

add Dividend back

150
Q

End RE

A

Beg RE + NI -div

151
Q

Int expense is part of what activity

A

Operations

152
Q

Net Sales

A

GM# - cogs

153
Q

days sales in inventory

A

AVG inv @cost / avg sales per day at cost

154
Q

% complete income

A

Cost incurred / est cost ( Contract price - Est Cost)

155
Q

When net method of cost is recorded you take out?

A

the net 2% ex: 2/10 discount

156
Q

Completed contract method is used

A

when there is a lack of dependable estimates or hazards cause forecasts to be doubtful

157
Q

Shipping in =

Shipping out=

A

inventory exp

Selling exp

158
Q

Which method maximizes profits in a pd of rising prices

A

FIFO

159
Q 
Recognize these items where?
G sale of MS
unreal loss A for S sec
unreal gain trading debt sec
Int rev trading sec
unreal gain on held to maturity
unreal loss on trading sec
A 
inc stmt inc from ops
other comp inc
inc stmt inc from ops
in stmt inc from ops 
not on fin stmts
inc stmt inc from ops
160
Q

Ceiling is?

Floor is?

A

NRV

NRV -NP

161
Q

NRV=

A

SP- cost to sell

162
Q

Cash collected on acct and bond and dividend for A for S sec are what type of activity

A

operating

163
Q

Cash received from sale of A for S activities

A

investing

164
Q

Personal Fin stmts include?

A

Change in NW and stmt of fin position

165
Q 
Exchange rate translations:
inventory at cost
BP
Marketable Sec at MV
Common Stock
Accrued Liab
Land
A 
Historical Cost
Current
Current
Historical
Current
Historical
166
Q

What is used when translating IS from one currency to another

A

Weighted average

167
Q

Hard and fast rule for translation

A

when at cost use historical when at mv use current

168
Q

when func currency is local currency bs accounts are remeasured at what rate?

A

Current and if func was us it would be the mixture hard and fast rule

169
Q

When us is func currency means all BS and IS

A

are trans at HRates

170
Q

If func currency is local currency use…. for trans

A

weighted average current to trans IS

rate at bs date for BS

171
Q

Remeasure GL is recognized in IS when

A

func currency is not local currency

172
Q

Consignor

A

owns goods

173
Q

Ceiling

A

Selling cost- disposal

174
Q

Sales commissions are not factored in

A

GM

175
Q

Total cost incurred

A

Current % x est cost - prev yrs

176
Q

Cost

Market

A

Cost is OG cost

Market is Rep cost

177
Q

Composite Depreciation on a group is a group of

A

heterogeneous assets no gl for retirement of single assets

178
Q

For impairment compare

A

CV to FV

179
Q

When no commercial sub record at?

A

BV and no GL Comm sub means diff in cash flows

180
Q

Goodwill is not

A

AMORTIZED unless private then you can less than 10 or equal to

181
Q

Paid in capital calc

A

NYSE ( or what is traded) x share - Par x shares

Use whatever is more reliable NYSE wins normally

182
Q

Impairment on Fixed assets

A

NOT REVERSED

183
Q

Sale of AR is called

A

Factoring

184
Q

An IFRS provision is

A

Probable and measurable

185
Q

Servicing A and L are recorded at

A

FV

186
Q

When loss is not known you accrue what amount in the range given?

A

Lowest

187
Q

Working capital goes down on what dividend date?

A

When declared

188
Q

If current ratio is greater than 1 then pmt of curr liab ending in equal top and bottom affect with do what to CR?

A

Increase

189
Q

Entry when previously written off amount is collected

A

DR: ar
CR allow restab AR then
DR cash
CR ar

190
Q

Sale of AR is called

A

factoring

191
Q

IFRS provisions are

A

probable and measurable

192
Q

Servicing A and L are recorded at

A

FV

193
Q

When no best guess and best guess of loss

A

accrue lowest and best guess

194
Q

Working capital does what when divided declared on what date

A

goes down on declared date

195
Q

If current ratio is greater than one an equal change top and bottom will do what to CR

A

increase

196
Q

What is the entry when previous written off account is collected

A

reestab AR this increases the allowance account
DR: ar CR: allowance
DR: cash CR:ar

197
Q

change in FV of servicing assets is reported in?

A

earnings stmt

198
Q

weighted average interest -=

A

$x%(days/days in yr)

199
Q

when recording BP expense you what happens to the allowance account

A

it is credited

200
Q

Is commercial paper a cash equivalent?

A

YES

201
Q

of days in AR=

A

365/(net cred sale/Avg net AR)

202
Q

Acid test ratio (quick) =

A

cash + temp inv+ mark sec+net rec/Cl

203
Q

What do you do with negative bank balances

A

they are a liab do not net btw banks

204
Q

When do you record note at FV

A

is inc borrowing rate is higher than stated rate

205
Q

Effective interest rate calc

A

PV note x going rate

206
Q

annuity due concept

A

first payment is due when first established

207
Q

BV method never records g or l on conversion what happens?

A

Bonds are removed at BV and stock is then recorded at the removed BV

208
Q

Interest method calc for bonds

A

Int exp = bv of bonds out x yeild rate
int pd cash amt= face of bonds x stated rate
diff between these is bond disc amort if exp is higher
Face amount= $ x #bonds and amort disc total is face amount - amount issued for.

209
Q

If stated rate is less than effective rate bonds are at a

A

discount

210
Q

Issue price of bonds =

A

face value x PV +(facexstated)(ord rate)

211
Q

Is interest for EIM less or more than SL in early years

A

LESS

212
Q

Are convertible interest rates more or less than non

A

LESS

213
Q

Int Exp =

Int Pay=

A

BV x yeild x time
face x state x time
diff is discount if expense is larger

214
Q

Allocating to warrants and bonds

A

FMV without war/ FMV w war x purch price=amort to bond

215
Q

Bond Premium

A

amt assign to bond-face value bonds

216
Q

Interest rec=

A

state rate x state value

217
Q

Int Rev=

Cash of int rev=

A

amt pd x yeild

face amt x face %

218
Q

BV conversion method never records what?

A

G or L

219
Q

Carry amount =

A

Face + unamort bond premium

220
Q

Gain on debt restructure=

A

CV of note- FMV of what was pd

221
Q

When do you recog pension A and L on BS?

A

when Fv of plan A is less than obligation

222
Q

IFRS pension method

A

projected unit credit method

223
Q

Interest exp on a lease=

A

pv of the annuity x %

224
Q

What rate is used to compute lease interest

A

implicit

225
Q

Capital lease criteria

A

90% FV is PV of pmts or 75% of life

226
Q

How is lease bonus income treated

A

amort over the life of the lease

227
Q

Lessee records an asset at (leased)

A

lower of pv of pmts or fv of leased asset

Liab recorded should not exceeed the FMV of leased prop

228
Q

Liab for operating lease=

Liab for Capital lease=

A

Cash amount

PV of pmts

229
Q

Sales type lease info

A

Title transfers at lease begin date
Inc is received in the yr of sale
If sale back lease is cap then profit is deff and amor over lease term.

230
Q

IFRS deferred tax A & L are only

A

NONCURRENT

231
Q

Where is tax bene from disc ops recorded

A

Inc from cont ops

232
Q

Is dividend a CL

Is interest a CL

A

NO

YES

233
Q

Effect of stock dividend

A

decreases RE by debiting and does not effect stock holder equity

234
Q

What date do you record when equity interest is paid for service?

A

grant date

235
Q

Basic EPS=

A

NI-Pref Div / weighted avg cs out

236
Q

Preffered dividend calc

A

% x par of pref out

237
Q

APIC is recorded for subscription when?

A

recorded

238
Q

Getting TS does what to stock holder Equity

A

reduces under cost and par

239
Q

What does a liquidating dividend declaration effect?

A

decreases RE and APIC

240
Q

Vest options hit

non vest options hit

A

RE

Compensation exp

241
Q

PIC is a what normal balance account

A

credit

242
Q

Recorded subscribed stock when?

A

contracted for

243
Q

A stock dividend is treated how?

A

Outstanding for the whole year

244
Q

Equation to see if situation would be dilutive

A

Interest which is %*$ of 1 bond - tax / shares

If less than EPS then dilutive

245
Q

TS gets what and not what when rebought and recorded

A

NO G or L

gets PIC and RE

246
Q

What approach does IFRS segment reporting use

A

MGT approach

247
Q

Enterprise wide disclosures include

A

products and services not depreciation

248
Q

External sales should be what percent of unaff rev

A

75%

249
Q

COGS is not a required segement disclosure

A

YOU CAN DO IT :)

250
Q

In partnership assets are at what value when formed

A

FV

251
Q

Amount to be contributed when a partner comes in =

A

Partner interest % x (capital of existing+ amt cont)

252
Q

When do you report as a segment

A

If contributes more than 10% of entity wide profit/loss, Revenue or Assets.

253
Q

Gain on sale of an asset in the indirect method is what part of cash flow

A

Operating

254
Q

BV of CS per share=

A

Total OE- Pref stock

255
Q

Amount of stock allocated to pref stock

A

par of ps out+Div in arrears

Div in arrears is (total value par pref stock x %)

256
Q

Dividend less than 25% is small use FV of stock on date that it was declared DR RE and CR CS for out x par and rest is APIC if large then par trans from RE.

A

You can do it!

257
Q

What method of accounting does Gov use for Rev

A

Accrual

258
Q

What amount is AP measured at when a government files for bankrupcy

A

Plan adjustment

259
Q

Permanent funds

A

sources restricted so that only earnings can support other operations

260
Q

Agency Funds

A

are for assets held by a gov unit as an agent for individual private organizations other funds and units.

261
Q

Property taxes are recorded in what fund for Gov

A

General

262
Q

Budget for gov Rev entry includes

A

DR: Est rev
CR: Approp
CR: Budgetary fund balance

263
Q

What fund records depreciation for gov

A

internal service fund

264
Q

What is a unrestricted grant recorded as for gov

A

revenue

265
Q

Apps are recorded as for gov

A

non operating rev

266
Q

Reserve for encumbrances is a what balance

A

credit

267
Q

What happens when PO is approved for encumbrance accounting

A

DR: Encumb
CR: res for encumb

268
Q

Gov Wide has what activities

A

gov activities, business activities, and component units

269
Q

Propriety Funds use what accounting

A

FULL accrual

270
Q

Special reserve is closest to what fund accounting

A

general

271
Q

Internal serv is closet to what fund accounting

A

enterprise

272
Q

What funds use accrual for gov

A

enterprise internal service and pension trust

273
Q

A loss is deduction in NI but must be added back when determining cash flows

A

ALmost there

274
Q

Bond Discount is what cash flow section

A

operating

275
Q

Dividends Rec is what cash flow section

A

operating that increases cash

276
Q

Operating Expense =

A

Exp per NI+increase in PPD -dep-increase in accrue exp

277
Q

Purchase of TS is what cash flow act

A

Financing

278
Q

Interest pmts are what cash flow

A

operating

279
Q

Sale of PPE is what cash flow

A

investing

280
Q

Amort of Bond disc and prem are

A

deductions from NI

281
Q

Making and collecting on loans is what cash act

A

investing

282
Q

Cash equivalents like T bills do not effect cash flow stmt

A

:)

283
Q

Sale of A for S and held for mat is what cash act

A

Investing

284
Q

Collection of note rec is what cash act

A

investing

285
Q

Increase in cash from operating activities =

A

NI-AR+AP+inc in allow+ dec in ppds

286
Q

Inc tax and int are reported as what for indirect method of cash

A

supplemental disclosures

287
Q

Invest cash flow=

A

inc in NC assets + inc in marketable sec

288
Q

Fin Cash flow=

A

inc in NP+ inc in CS

289
Q

Conditional Promise is a

A

liab and subject to return

290
Q

Non for P stmts include

A

stmt fin pos
stmt of act
stmt of cashflows
and Health must provide a change in net assets stmt

291
Q

Non for P investments are reported at

A

FV this is updated at YE

292
Q

Charity care is accounted for how?

A

only disclosed in the notes

293
Q

Governmental does not require a cash flow stmt

A

:)

294
Q

Term and regular endowments are restricted how?

A 
Term= Temp
Reg= perm
295
Q

Cash rec from perm invest is what activity

A

financing

296
Q

Change in FV of Trading goes to what stmt

A

NI

297
Q

Change in A for S is on what stmt?

A

OCI then on NI if FV option is selected also is lowered in NI if decrease in value is PERM

298
Q

For equity method CS div reduces anchors investment acct by % own and NI goes up by % owned Pref div inc is inc by % owned. What about for FV?

A

For FV NI increases by percent for both div and NI

299
Q

Life ins policy exp=

A

Cash surr Beg V- cash surr end V - Cash
DR:plug
CR:cash surr B-E value
CR: Cash

300
Q

Hedge effectiveness is evaluated when?

A

Every time stmts are sent or at least every 3 months

301
Q

Foreign currency hedge does not exist under?

A

IFRS

302
Q

Ins cash value surrender value =

A

Difference between Exp charged and annual premium amount

303
Q

FV is used when for reporting instead of Equity?

A

When no sig control and own less than 20%

304
Q

Allocation values for stock with warrants

A

W/S+w price x purch price=warr alloc

S/ s+w price x purch price = stock alloc

305
Q

Equity method affect of Pref Div

A

Increase in Rev

CS is a decrease in the investment account

306
Q

Liquidating dividend is what affect on Finances

A

Deduction in Rev

307
Q

Record Div Inc when?

A

Declared

308
Q

At sale of sec rec loss in amount of begin to sale.

A

other times is is written down as unreal

309
Q

Shares of stock div given as div is account as?

A

NOT as Revenue or div inc

310
Q

put options can be sold when?

A

At anytime.

311
Q

Any dividend that exceeds RE is what type?

A

Liquidating by the amount it exceeds RE

312
Q

Stock Dividend JE

A

DR: RE (FV x shr) CR: CS (Shr x Par) CR: PIC ( plug)

313
Q

Retained Earnings =

A

Income- Cash Div – Stk Div

314
Q

RE decreases by FV of Stk given out when issued or declared if FV is available

A

You can do it!

315
Q

Conversion entry of PS to CS

A

DR: Pref Stk DR: APIC Pref Stk CR:Comm Stk (parxShr) CR: PIC CS (Plug)

316
Q

Cash Div what happens to RE?

A

Debit RE then CR cash and Dividend Payable

FAR Frame, Overview, Statements (2 decks)

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