Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Financial Accounting & Reporting - CPA > Module 9A Part 1 > Flashcards

Module 9A Part 1 Flashcards

1
Q

Cash Collections X Gross Profit %

A

Realized Gross Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Ending Accounts Receivable X Gross Profit %

A

Deferred Gross Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Beginning Accounts Receivable for that Year

A

Installment Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Installment Sales - Cost

A

Gross Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Gross Profit / Installment Sales

A

Gross Profit %

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When to use Installment Sale method?

A

Cannot estimate collectibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

When to use Cost Recovery Method?

A

Can’t determine collectibility of receivables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Definition of Conservatism

A

Bias in all U.S. GAAP - The accountant, when confronted with alternative methods of accounting treatment, will choose the one that does not overstate assets or earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

3 part Definition of Assets

A
  1. Obtain it or control it today
  2. It will provide benefits in the future
  3. It occurred as a result of a past transaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

3 part Definition of Liabilities

A
  1. Owe it as of today
  2. You will sacrifice something in the future
  3. It occurred as a result of a past transaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Comprehensive Income SFAC Definition

A

Any change in Shareholder’s Equity that does not involve the owners (investments or distributions)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Normal Balance for Assets on T Account

A

Debit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Normal Balance for Liabilities on T Account

A

Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Normal Balance for Shareholder’s Equity on T Account

A

Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Normal Balance for Revenue on T Account

A

Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Normal Balance for Expenses on T Account

A

Debit

17
Q

In calculating present value in a situation with a range of possible outcomes all discounted using the same interest rate, the expected present value would be…

A

the sum of probability-weighted present values

18
Q

The two fundamental qualitative characteristics of accounting information are…

A

Relevance and Faithful Representation

19
Q

According to the Statement of Financial Accounting Concepts, neutrality is part of:
Faithful Representation?
Relevance?

A

Faithful Representation - Yes

Relevance - No

20
Q

According to the FASB conceptual framework, which of the following is an enhancing quality that relates to both relevance and faithful representation?

a. Comparability
b. Confirmatory Value
c. Predicative Value
d. Freedom from error

A

a. Comparability

Financial Accounting & Reporting - CPA (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions