MISC - Review - Deck 2 Flashcards
What does BASE stand for when related to bad debts?
Beginning - Beginning balance, allowance for uncollectible accounts
Additions - Uncollectible accounts expense (Pos)
Subtract - Accounts written off (Neg)
Ending - Ending balance, allowance for uncollectible accounts
How to calculate double declining depreciation?
Year 1:
2 x 1/(Life of asset) x Amort amount
Year 2:
2 x 1/(Life of asset) x remaining amort amount
So on!
What are the key characteristics of OCBOA financial statements?
OCBOA financial statements should differentiate from accrual basis statements, report equity interests, and include disclosures similar to GAAP. They should include equivalents to the balance sheet and income statement, but a statement of cash flows is not required.
What is Inventory turnover ratio?
COGS / Average inventory
How are leasehold improvements accounted for?
Leasehold improvements are capitalized and amortized over the lesser of the life of the improvements or the remaining term of the lease. They are not expensed as incurred.
How should intangible assets should be amortized?
- Remining life 30 yrs
- Useful life 38 yrs
- Cash Flows 25 yrs
- Cash Flows 25 yrs
Intangible assets should be amortized over the lesser of the useful economic life or the legal life.
Calculating fair value of Land, which value to use?
- Purchase 120k
- FV Manufacturing 150k
- FV Undeveloped 130k
- FV Residential 180k
- FV Residential 180k
The highest and best use for the land is for residential development
How to calculate basic EPS?
- Beg Shares
- Issued shares Months % * Amount
- Purchase Treasury Months % * Amounts
- Sum all, weighted average
When would it be appropriate to capitalized cost?
-After the construction and assembly period on a production machine.
- Before the construction period begins on a building.
- On regular manufactured inventory items.
-During delays in obtaining permits to complete building construction.
-During delays in obtaining permits to complete building construction.
Waiting to obtain permits to complete the construction process is considered an ordinary delay in construction, and interest costs can be capitalized.
Which FS would provide information about the ongoing revenues and expenses?
- The statement of comprehensive income.
- The statement of activities.
- The statement of cash flows.
- The statement of financial position.
The statement of activities.
The statement of activities provides information about the ongoing revenues and expenses associated with a voluntary health and welfare organization similar to the income statement in commercial settings.
