Overall Review Flashcards
Accumulated Other Comprehensive Income is Reported in what statement?
Is a Balance Sheet account and is reported in Statement of Financial Position
Materiality and relevance are both defined by:
What influences or makes a difference to a decision maker
For sales commission payable at the end of a month:
Take net sales x Commission percentage. When they receive a salary advance you adjust the commission earned up to that dollar amount. The final amount to accrue is the fixed salary amount to get total accrual amount.
When going from cash basis to accrual basis of accounting, you and add and subtract the following:
Add Increases in current assets
Subtract Decreases in current assets
Add Decreases in current liabilities
Subtract increases in current liabilities
Under IFRS, intangible assets
Internally generated goodwill cannot be recognized as an asset
Goodwill is:
is the excess of the purchase price over the fair market value of the net assets acquired
The discount resulting from the determination of a note payable’s present value should be reported on the balance sheet as (an):
Direct reduction from the face amount of the note.
Warranty expenses where costs are estimated to be a percentage of sales
Take the Warranty sales x estimated percentage. Then subtract out actual costs incurred to get the total warranty expense for the year
Calculate Accrued Salaries Payable
Beginning Balance
Add: Salaries Expenses during the year
Subtract: Salaries paid during the year (gross)
Operating Profit by segments is based on:
The measure of profit reported to the “Chief Operating Decision Maker.” Interest Expense, Income taxes, and general corporate expenses are not allocated to the divisions solely for the purposes of segment disclosures; they may be allocated if that is how the segments report to the “Chief Operating Decision Maker.”
A common modification used to prepare modified cash basis financial statements is:
Capitalizing inventory
In a single period statements, you should not reflect the following as an adjustment to the opening balance of retained earnings:
Effect of a decrease in the estimated useful life of depreciable equipment. This is done prospectively
The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of:
Total costs incurred to date to total estimated costs
A company that is large accelerated filer must files its Form 10-Q with the United States Securities and Exchange Commission within how many days after the end of the period?
40 days.
45 days for small corporations
Undervalued assets amortization affects both the investment account (an asset) and the investment income account (a revenue), while cash dividends affect the
investment account but not the investment income account.
Conceptually, interim financial statements can be described as emphasizing which enhancing qualitative characteristics?
Timeliness by providing financial information based on actual performance to date and estimates prior to year end.
Under the IASB framework, ______is the underlying assumption of financial statement preparation and presentation.
Going Concern.
Under a royalty agreement with another company, Wand Co. will pay royalties for an assignment of a patent for three years. The royalties paid should be reported as expense:
In the period incurred.
According to the FASB conceptual framework, certain assets are reported in financial statements at the amount of cash or its equivalent that would have to be paid if the same or equivalent assets were acquired. What is the name of the reporting concept?
Replacement Cost
Deb Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments. According to the FASB’s conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the:
Current asset section as a contra account.
The amount of deferred gross profit relating to installment AR collections 12 months beyond the balance sheet date should be reported in the current asset section as a contra account.
When service contracts are sold,
Deferred revenue increases but service revenue doesn’t increase until services are performed.
Form 10K is filed annually. How many days after close for each of the following:
- Large Accelerated
- Accelerated
- All Others
- Large Accelerated - 60 Days
- Accelerated - 75 Days
- All Others - 90 Days
Form 10Q is filed quarterly. How many days after close for each of the following:
- Large Accelerated
- Accelerated
- All Others
- Large Accelerated - 40 days
- Accelerated - 40 days
- All Others - 45 days
