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FAR > General > Flashcards

General Flashcards

1
Q

What rate is used to discount PV in stock-based compensation?

A

Risk Free Interest Rate.

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2
Q

When does an entity measure the cost of employee services in exchange for an award of equity interest?

A

Date granted.

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3
Q

When you sell treasury stock for more than the acquisition price, the gain you recognize is…

A

You recognize ZERO GAIN.

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4
Q

Price Earnings Ratio

A

Market price per share / EPS

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5
Q

Which government/non profits use a statement of cash flows?

A

All non-profits/ no governmental.

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6
Q

What’s used by stockholders to acquire unissued or treasury stock?

A

Stock Warrants.

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7
Q

Dividends per share payout ratio…

A

Dividends per share / Earnings per share.

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8
Q

Price Earnings Ratio

A

Market price per share / EPS

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9
Q

A liquidation dividend is a dividend that….

A

Exceeds RETAINED EARNINGS.

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10
Q

How is equity affected by a stock dividend?

A

Stockholder’s equity remains the same, it’s just a shift between issued stock and retained earnings.

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11
Q

Stock rights are only recognized in common stock when…..

A

Exercised, yo.

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12
Q

When calculating APIC on exercised stock options, remember to take into account….

A

Compensation expense on the stock options.

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13
Q

Which govvy funds require budgets in the CAFR (annual statement)?

A

General & special revenue. Enterprise & fiduciary do not have legal budgets.

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14
Q

Which of these are derived or imposed govvy revenues: Fees, income tax.

A

Fees are imposed and income tax is derived. You do not derive fees from actions, you impose.

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15
Q

In a modified accrual govvy fund, the paying of a matured principle is accounted as an…

A

Expenditure.

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16
Q

Funds held by a county for a school is a _____ fund.

A

Agency.

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17
Q

Which government/non profits use a statement of cash flows?

A

All non-profits/ no governmental.

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18
Q

What is the focus of government wide statements, current financial or economic?

A

Economic.

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19
Q

What type of one sided exchange is a grant given from the state to a smaller government?

A

Voluntary.

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20
Q

When reporting foreign translation accounts, monetary items or items carried at market value are reported as _____________ and items reported at cost are reported as __________.

A

Current rate, historical rate.

21
Q

Gains from currency changes in receivables and payables are _________. Gains from currency differences in assets are________.

A

Transaction, translation.

22
Q

On restructuring of troubled debt, a gain is realized if the carrying amount of the debt…

A

Exceeds the future cash payments of the settlement.

23
Q

What is the process of bifurcation?

A

Separating a derivative from a “host” security.

24
Q

How is the pension asset (liability) calculated.

A

The excess of the amount funded (service cost + funding of prior service cost) over the pension expense (service cost + amortized service cost)

25
Q

What do you do with the discount rate when calculating pension obligations?

A

Multiple the discount rate by the actuarial estimated projection.

26
Q

What rate is used as a discount rate when calculating pension obligations?

A

The market rate for high quality bonds.

27
Q

What does the interest included in net pension expense represent?

A

Increase in projected pension benefits due to the passage of time.

28
Q

How do you treat capital leases that are renegotiated into an operating lease?

A

As a sale-leaseback.

29
Q

At what point does a capital lease turn into a financing lease?

A

When the risk of ownership is completely transferred to include a bargain purchase option.

30
Q

Under a lease with a bargain purchase option, the lease liability is the….

A

PV of the lease payments and PV of the bargain purchase option calculated separately, then added.

31
Q

If electing fair value option, unrealized gains and losses from AFS securities is reported….

A

On the income statement (along with trading securities).

32
Q

If not electing fair value option, unrealized gains and losses from AFS securities are reported…

A

As other comprehensive income or loss.

33
Q

T/F - You can elect to report the fair value method on securities on a security by security basis.

A

TRUE

34
Q

AFS securities, when fair value method is not elected, temporary losses go to ______ while non temporary losses go to ______.

A

Other comprehensive income, income statement.

35
Q

On the statement of cash flows, dividends from investment stock are…..

A

Operating cash flows, yo.

36
Q

Under a sales type lease, gain is recognized…..

A

In the first year.

37
Q

What type of hedge is recognized by GAAP, but not by IFRS?

A

Foreign currency hedge.

38
Q

Where are gains/losses for fair value hedges/cash flow hedges reported?

A 
FV= income statement
CF = other comp inc
39
Q

In a sale leaseback, the gain is….

A

Amortized over the life of the loan.

40
Q

On the statement of cash flows, dividends from investment stock are…..

A

Operating cash flows, yo.

41
Q

Study partnerhip buy in/ buy out goodwill method and bonus method….

A

seriously…

42
Q

Unrealized gains on AFS securities electing not to use the fair value method are….

A

Presented only in the footnotes.

43
Q

If not electing fair value, a temporary decline in AFS securities is ________ while a permanent is ________.

A

Temporary - other comprehensive, permanent - income

44
Q

Under a sales type lease, gain is recognized…..

A

In the first year.

45
Q

AFS securities recognize an unrealized loss in comprehensive income. When sold the next year, what number is used to calculate the loss?

A

The original purchase price. The loss is reversed as a gain in other comprehensive income, then the loss is recognized after.

46
Q

Under IFRS FVTPL method of reporting securities, held to maturity changes in market value are reported….

A

In current earnings.

47
Q

In a sale leaseback, the gain is….

A

Amortized over the life of the loan.

48
Q

Stock dividends received are recorded as….

A

Nothing.

FAR (6 decks)

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