MDS F3 Flashcards
What is included in pension expense?
SIRAGE \+Service Cost \+Interest Cost -Actual return on plan assets \+Amortization of Prior Service Cost \+/- Gain or Loss =Pension Plan Expense
What is included in post-retirement benefit expense?
SIRAGE \+Service Cost \+Interest Cost -Actual return on plan assets \+Amortization of Prior Service Cost \+/- Gain or Loss =Post-retirement Benefit Expense
What is the journal entry to initially record prior service cost?
Accum. OCI
Liability for pension benefits
What is the attribution period in post-retirement benefit pension accounting?
The attribution period is the period starting on the date of hire and ending on the “full eligibility date”
Add-subtract formula for Deferred Taxes
Beg. Current and Deferred Tax Accounts Add: Current deferred tax expense or benefit Subtotal Less: Tax payments End: Current and Deferred Tax Accounts
Formula for Current Income Expense
Taxable income x income tax rate (The Form 1120 amount)
Formula for Deferred Tax Expense
Difference between beg. DTA and end. DTA
What is the formula for total income tax expense?
Current income tax + Deferred income tax
What type GAAP v. Tax differences affect the deferred tax account?
Temporary differences
List 5 Common Temporary Differences
Warranty costs Rents collected in advance Goodwill amortization Bad debt expense Equity method of accounting v. cost method Depreciation methods Installments sales
What is the inventory turnover ratio?
COGS/ Avg. Inventory
What is the A/R Turnover Ratio?
Credit Sales/ Avg. A/R
What is the formula for days in inventory?
365 x Average Inventory/ COGS
What is the formula for days in receivables?
365/ A/R Turnover
What is the formula for days in operating cycle?
Days in Inventory + Days in Receivables
