Other Financial Statement Presentations

Question 1

OCBOA presentation includes

Answer 1

cash basis
tax basis
definite set of criteria
regulatory basis

Question 2

OCBOA presentation does not include

Answer 2

statement of Cash flow

Question 3

Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:

Answer 3

Recognize certain revenues and expenses in different reporting periods.

Income tax-basis financial statements recognize events when taxable income or deductible expenses are recognized on the entity’s tax return. Non-taxable income and non-deductible expenses are shown on the financial statement and included in the determination of income (and become M-1 adjustments to arrive at taxable income).

Question 4

In financial statements prepared on the income-tax basis, the nondeductible portion of expenses (such as meals and entertainment) should be included in

Answer 4

the expense category in the determination of income.

Question 5

On personal financial statements, all items are reported at

Answer 5

fair market values (estimated current values).

Question 6

Personal financial statements usually include

Answer 6

a statement of financial condition (similar to a balance sheet) and a statement of changes in net worth (similar to an income statement)

Question 7

A business interest that constitutes a large part of an individual’s total assets should be presented

Answer 7

in a personal statement of financial condition as a single amount equal to the estimated current value of the business interest.

Question 8

personal financial statements should report assets and liabilities at

Answer 8

estimated current values at the date of the financial statements