jog the brain Flashcards
give 2 examples of imposed non-exchange revenues:
property taxes
fines
give 2 examples of derived tax revenues
sales tax
income tax
when short term debt is refinanced with long term debt, how is it classified and reported?
non-current liability
disclosed
what characteristics is difficult for governmental reporting?
relevance
how does sum of the years’ digits work?
- depreciation base: $20,000
- 4 year useful life
year 1: 4/10 * 20,000
year 2: 3/10 * 20,000
year 3: 2/10 * 20,000
year 4: 1/10 * 20,000
Cobb contributes $100 for 25% of the partnership.
Andrew contributed $200 for 75%
Bear contributed $50 for 25%.
how much is Cobb’s capital account under the bonus method?
add up all contributions = $350
$350 *25% = $87,500
bonus = 100,000 - 87,500
bonus can swing either to new or existing partners
Cobb contributes $100 for 25% of the partnership.
Andrew contributed $200 for 75%
Bear contributed $50 for 25%.
how much is Cobb’s capital account under the goodwill method?
Cobb’s capital account: $100
if $100 = 25% then the total capital = $400
the actual capital is $350 which means goodwill is $50
goodwill is distributed to the existing partners only
gain from troubled debt restructuring?
cancellation of debt - FMV of asset exchanged
gain/loss from transfer of asset for troubled debt restructuring?
FMV of asset exchanged - CV of asset exchanged
how do you report loan guarantee?
accrued and disclose
tax treatment for:
life insurance of proceeds received?
life insurance paid (when the company is the beneficiary)
subtract
add
estimates are reported as deferred tax
assets
when tax depreciation expense is greater than book depreciation expense, you get a deferred tax
liability
in interim reporting, how should expenses and losses be reported?
expenses - allocated across periods
losses - in FULL in the period incurred
form 3
form 20-f
form 11-k
- directors, officers or beneficial owners of equity securities
- non-US registrant annual report
- annual report of benefit plan
what are the rights for:
call options
put options
right to buy
right to sell
buy a call if you think the price will
increase
buy a put option if you think the price will
decrease
sell a call if you think the price will
decrease
sell a put if you think the price will
increase
when are these applied?
translation
remeasurement
functional currency = local currency
functional currency does NOT = local currency
exchange rate application for translation
assets and liabilities - current
equity - historical
dividends - historical
income statement - average
exchange rate application for remeasurement
monetary assets and liabilities - current
nonmonetary assets and liabilities - historical
common stock - historical
balance sheet related items on income statement - historical
(cogs, depreciation)
asset retirement cost will
decrease with depreciation
asset retirement obligation will
increase with accretion rate
what is treasury stock’s normal balance?
debit
which hedge is reported in OCI?
cash flow - effective portion
how do you determine if a security is dilutive?
apply the what if method if convertible cumulative preferred stock
how do you find the credit loss for a held to maturity security?
amortized cost - PV
