Select Financial Statement Accounts Flashcards

1
Q

What is the floor and the ceiling for replacement cost?

A

NRV less normal profit margin is the floor; NRV is the ceiling. Market CANNOT exceed the ceiling or be lower than the floor.

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2
Q

When prices are rising using FIFO, COGS is the ___ and provides the _____ net
income

A

lowest and highest

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3
Q

Costs are the same under a perpetual and periodic inventory system for what method?

A

FIFO

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4
Q

If market yield rate is higher than stated rate, the note is issued at a ____

A

discount; opposite for premium

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5
Q

Lower of Cost or Market is used for what inventory methods?

A

LIFO and Retail Method

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6
Q

Significant Accounting Policies include -

A

Depreciation methods, consolidation basis, interperiod tax allocation, inventory pricing, and revenue recognition methods.

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7
Q

Book Value per Share Formula

A

Total Stockholder’s Equity/# of Shares Outstanding

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8
Q

When stated interest rate > market rate, bonds are sold at a ___

A

Premium (i.e., 12% sold to yield 10%)

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9
Q

When stated interest rate < market rate, bonds are sold at a ____

A

Discount (i.e. 8% sold to yield 10%)

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