Random Flashcards
What is impairment of an asset?
Carrying amount is no longer recoverable.
What are the 2 steps of the recoverability test?
- Carrying amount exceeds the sum of future cashflows
- The loss is equal to excess of carrying amount over FV
What are the 3 accounting changes?
Change in
accounting principle
accounting estimate
reporting entity
What is the time frame to file 10k for non accelerated filer?
90 days
What is the time frame to file 10k for large accelerated filer?
60 days
What is the time frame to file 10k for accelerated filer?
75 days
What is filing time frame for 10Q for large accelerated and accelerated filers?
40 days
What is filing time frame for 10Q for non accelerated filers?
45 days
What is the time frame to file 8k?
4 days
What 5 events require an 8k to be filed?
1Changes in control
2Acquisition/disposition of significant assets
3Bankruptcy
4resignation of director
5change in accountant
What is the revenue threshold for large accelerated filers?
700 million or more
What is the revenue threshold for accelerated filers?
75 million to 699 million
What does MD & A stand for?
Management Discussion & Analysis
What 3 items does MD & A cover?
Liquidity
Capital resources
Results of operations
5 categories of government funds?
General fund
Special revenue funds
Capital project funds
Debt service funds
Permanent funds
What are the 4 types of fiduciary funds?
Pension trusts funds
Investment trust funds
Private purpose trust funds
Custodial funds
What are the 2 categories of proprietary funds?
Enterprise funds
Internal service funds
What are the 3 statements for NFPs?
Statement of
Activities
Financial position
Cashflows
Are cash, cash equivalents and restricted cash reported in the statement of cashflows?
No
What are operating activities?
Anything not classified as financing and investing activities.
On the statement of cashflows, what are Expenditures intended to generate future income and cashflows?
Investing Activities
On the statement of cashflows activities that relate to issuing, settling, or reacquiring debt or equity are known as?
Financing activities
What is the payment of a cash dividend on the stmt of cashflows?
A financing activity
What is cash received in the form of a dividend on the stmt of cashflows?
An operating activity
What are examples of debt issues cost?
Promotion cost
Engraving and printing
underwriters commission
Attorney fees
What 3 things are added to the book balance on bank recon?
Interest earned
Deposits collected
Errors
What is subtracted from the book balance on the bank recon?
Service charges
NSF checks
Errors
What is added to the bank balance on a Bank recon?
Deposits in transit
errors
What is subtracted from the bank balance on a bank recon?
Outstanding checks
Errors
What is the formula for an impairment loss?
Carrying amount of asset minus the FV
What are the components of OCI?
Gains/losses on AFS debt securities, foreign currency translations, cashflows hedges and pension liabilities
What is the Cash to accrual formula for expenses and revenues?
Rev: A/R & Accrued liabilities, add increase & subtract to decrease. Exp: pp exp & deferred revenue, subtract increase &add decrease
What is straight line depreciation?
Depreciable base/estimated useful life
What is the carrying amount formula?
Historical cost minus accumulated depreciation and impairment losses
What is the measurement of inventory subsequent to initial measurement for LIFO?
LCM subject to a ceiling and floor. Market can’t exceed NRV (ceiling) of fall below NRV-npm (floor). Market is replacement cost.
What is the measurement of inventory subsequent to initial measurement for FIFO?
Lower of cost or NRV.
What is the formula for NRV in LCM?
NRV is acquisition cost minus selling cost or CDT(cost of completion, disposal and transportation)
What is historical cost?
Acquisition cost plus cost to bring the asset to the necessary C & L (condition and location)
What is the the depreciable base?
Historical cost minus salvage value and impairment loss
What is the declining balance method?
Carrying amount X declining balance percentage
(multiply carrying amount by declining balance percentage)
What is sum of the years digits?
Depreciable base times remaining years in useful life divided by Sum of all years in useful life.
How to do sum of the years digits numbers denominator
Example: 5 years useful life is 15 years denominator.
1+2+3+4+5=15
How to do sum of the years digits numbers numerator
Yr 1: 5 years remaining
2: 4 years remaining
3: 3 years remaining
4: 2 years remaining
5: 1 years remaining
What is the COGM formula
Ending Inventory
Plus purchases (Cost of sales)
Minus beginning inventory
=COGM
What is the COGS formula
Beginning inventory
Plus purchases for period
Minus ending inventory
Additions to book balance on bank reconciliation include…
Interest earned
Deposits collected
errors
Subtractions from book balance on bank reconciliation include…
Service charges
NSF checks
Errors
Subtraction from bank balance on bank reconciliation include…
Outstanding checks
Errors
Additions to bank balance on bank reconciliation include…
Deposits in transit
Errors
Additions to book balance on bank reconciliation include…
Interest earned
Deposits collected
Errors
What are the 4 examples of debt costs?
Promotion cost
Engraving and printing costs
Underwriters commission
Attorney fees
What are the 5 criteria for finance leases?
Trf of ownership, option to purchase, lease term at least 75% of economic life, PV of lease payments at least 90% of FV, specialized asset
Least term & Economic life = years
PV & FV = time
What is composite depreciation?
A group of dissimilar assets depreciated together. It uses straight line depreciation
What is group deprecation?
A group of similar assets depreciated together. It uses straight line depreciation
What are the 3 levels of Fair Value Heirarchy?
Level 1: most reliable (identical assets and liabilities)
Level 2: observable (similar items)
Level 3: Least Reliable
When are contribution of services recognized?
- Create or enhance non financial assets. 2. Require special skills 3.provided by those w/special skills 4.would be purchased if not donated
How are intangible assets amortized when they have a finite useful life?
They are amortized over the useful life. Not the legal life.
T or F. An intangible asset with an indefinite useful life is NOT amortized.
True
What amounts are expenses in a business combination?
1 Finders fees
2 Professional & consulting fees
3 General and administrative cost
How are capital donations classified?
Capital donations should be classified as non-operating revenue.
What are the 4 components of OCI?
• Unrealized gains and losses on AFS debt securities
• gains and losses on Foreign currency translation adjustments
• gains and losses on pension benefits
• gains and losses on derivatives
What is consistency?
Consistency refers to the use of the same accounting methods and policies from period to period within a company, allowing for comparability over time.
Fun fact
A decline in fair value that is due to credit losses is included in net income
Trading securities
Are brought and held for sale primarily in the near term
