Quiz Touch Ups Flashcards
Where/How would a gain on Remeasuring a foreign subsidiary’s financial statements from the local currency into the functional currency that occurred in the current year be classified in the financial statements?
Income from continuing operations
With separate disclosure on face of statement or in notes
Investments in equity securities with a readily determinable market value are reported at…
Market value on that date
Net assets of internal service funds are reported with…
2) Why?
Governmental activities in government wide financial statements
Because these activities are more governmental than business
Type in nature
Enterprise funds are reported as what in government wide financial statements?
Business type activities
In a business combination problem when you see an investment in sub equity method line item…
Only calculate parent’s stockholder’s equity
In the statement of cashflows under the indirect method a gain on sale of equipment…
Would be deducted from operating activities
If an entity reports a cumulative effect of a change in accounting principle, it shall present…
Basic and diluted EPS for cumulative effect of change in accounting
Principle
What is the entry for a reissuance of stock for less cash, where it exceeds over par raised at issuance under the cost method?
Cash. Xxx
Pic. Xxx
R/E. Xxx
T/S. Xxx
Non profit hospital:
Operating results are reported among…
Total changes in unrestricted net assets
Non profit hospital:
Revenues from educational would be considered…
Other operating revenues
Non profit hospital:
Gifts and contributions would…
Not be considered operating revenues
Non profit hospital:
Operating results reported among total changes in unrestricted net assets is an indicator that is analogous to…
Income from continuing operations in a for profit enterprise
In quarterly financial statements, extraordinary items should be…
Recognized Totally in the period where they occurred
Gain or loss resulting from changes in fair value of cash flow hedge is included in…
Other comprehensive income
Gain or loss resulting from changes in fair value of fair value hedge is included in…
Net income in period where change in fair value takes place
GASB requires a summary reconciliation between…
Fund financial statements and government wide financial statements
Under GASB for a reconciliation, Capital asset purchases and payments of long term debt principal would be considered…
Expenditure reductions of government fund balances and
Would be added back
Under GASB for reconciliation, the book value of capital assets sold during the year…
Requires subtraction to reconcile to changes in net assets
Issuance of rights to existing shareholders without consideration is recorded as…
A memo entry only
Issuance of rights to existing shareholders without consideration, when rights are then exercised…
Cash increases as well as common stock and paid in capital
Deferred income tax expense equation
Deferred income tax expense =
Temporary differences x effective tax rate
If a non interest bearing note due in 3 years is issued in connection with a contract to purchase merchandise…
A discount on notes receivable exists
When should warranty costs be recognized for sale of machines with warranty?
When machines are sold
During exchange of assets if, the asset given up has a fair value that is less than its carrying amount, when should a loss be recognized?
An impairment loss should be recognized before exchange is
recorded
In the year 20X2, When an asset decreases in value by $50,000 and a company values its equipment using the revaluation model under IFRS, How is the decrease in asset recorded?
Decrease the operating income in 20X2 by decrease in FV
of $50,000
Costs of one time termination benefits are recognized and measured at fair value at…
It’s communication date (to employees fired)
On January 28th 20X2, before the issuance of its 20X1 financial statements, Cali issued long term bonds and used the proceeds to repay a note payable that was due on March 20X2. How should Cali classify the note in its December 20X1 financial statements?
As Noncurrent liability, with separate disclosure of note refinancing
When an entity undertakes an obligation to service financial assets (collecting principal, interest, etc.) it should recognize…
Either servicing asset or liability
Servicing assets
Total servicing revenue is expected to exceed total servicing costs
Servicing liabilities
Total servicing costs are expected to exceed total servicing revenues
Under any basis of accounting for income taxes, expenses are deductible only when…
Paid or accrued
Under cash basis of accounting to determine taxable income…
There is no current deduction for capital expenditures
The expense for capital expenditures will be recognized in the form of…3
Depreciation, amortization or depletion
When a $10,000 note receivable with 3% interest is calculated on an outstanding balance, with interest payable at maturity (in 5 years) and a present value of $1 due in 5 years = .6806, how do you calculate the amount for the note receivable?
Present value of note = maturity amount x present value factor
= ($10,000 + (3% x $10,000 x 5 yrs)) + .6806
Short term obligations should be reported as long term liabilities if a company…2
1 intends to refinance the short term obligation on long term basis
And
2 demonstrates ability to refinance it on long term basis
For generating proceeds to refinance short term debt, Even if common stock is issued subsequent to the balance sheet date and before date of financial statement issuance…
This shows intent to refinance and classify short term debt on long
Term basis
Trade in allowed calculation
Trade in allowed = price of asset - cash paid
