Practice Test Flash Cards
When should warranty costs be recognized?
When the device is sold
What is the impairment test, it has two steps: test for recoverability and then the actual impairment
Recoverability test: test to see if the carrying value is greater than the undiscounted future cash flows. If so, then the amount of impairment is the DIFFERENCE BETWEEN Carrying amount of the asset and its fair value
What is the difference for how unrealized gains and losses are reported for Trading Securitys and Available For Sale Securities
Trading Securities: Reported af Fair value, and Gains/losses are reported in earnings
WHILE AFS is also reported at Fair Value, the Gains and losses go to OCI
What is the equation to find the partial goodwill under IFRS?
Partial Goodwill = Purchase Price - FV of Net Assets acquired
Where are gains or losses recognized from changes in Fair Value of Derivatives/hedgin instruments recognized?
In Net Income
When are revenues recognized for a government
when they are measurable and available
What method must the proprietary funds use when making their statements of cash flows
DIRECT METHOD YOU ASSHAT
If you are changing from LIFO to another inveotry evaluation, you only worry about what amount, beginning of the year, end of the year, or difference between the too? and is it net of tax
you worry about only the beginning of the year amount, as that is the basis of your adjustment, and it is net of tax
Under regulation S-X, an entities interim financial statements would not include what aspect of the usual financial statements
there is no statement of cash flows
IFRS requires Component depreciation, can you tell me what that means
so you have an asset, and included in the cost is th cost of th equipment, the component, and inspection costs.
all three of those are broken out seperately and depreciated
In a consolidation, how much of the subsidiarys stock holders equity section is eliminated
all of it.
Under IFRS, if you have DTA’s and DTL’s do you net them or keep them seperately stated? and then are they reported as current or non current
you net them together and report them as noncurrent
How does a NONGOVERNMENTAL NON PROFIT report donor restricted contributions for long-term prurposes on the statement of cash flows
they report them as financing activities
For a government, you do a reconciliation of the fund financials to the actual government wide financials, where do you find this reconciliation
in the basic financial statements
When is going concern evaluated, like how often?
At each interim and annual financial reporting period.
Are losses from discontinued operations gross, or net of tax? What is included in discontinued operations in terms of valuation
they are net of tax and can include the impairment losses in them as well
If you are given a trial balance, how would you go about finding the ending retained earning amount
Revenue LESS: Expense =Pretax income Less tax = Net income \+Beginning RE =End Retained Earnings
What is form 8-K?
it lists major events that happened, just is written whenever the event occurs.
For a not for profit, what are the program services and support services
program services are those which relate to activities which support the main reason why the NFP is even operating
Support services are everything else, like fundraising and member development
How do you find the issue price of a bond?
You do the face amount times the PV factor of $1 using the market rate and considering how many payment periods and ADD the interest amount paid for one period using the stated rate and apply the PV of an annuity for the right amount of periods and at the market rate.
When you record an ARO, you have expenses arise for both X and Y what are X and Y
for both depreciation expense and accretion expense
