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Financial Analysis and Reporting > [SELF ASSESSMENT] REVIEW OF FINANCIAL STATEMENTS > Flashcards

[SELF ASSESSMENT] REVIEW OF FINANCIAL STATEMENTS Flashcards

1
Q

CURRENT OR NON-CURRENT: Cash and Cash Equivalent

A

CURRENT

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2
Q

CURRENT OR NON-CURRENT: Property, plant and equipment

A

NON-CURRENT

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3
Q

CURRENT OR NON-CURRENT: Financial assets

A

CURRENT

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4
Q

CURRENT OR NON-CURRENT: Prepaid expenses

A

CURRENT

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5
Q

CURRENT OR NON-CURRENT: Long-term investments

A

NON-CURRENT

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6
Q

CURRENT OR NON-CURRENT: Intangibles

A

NON-CURRENT

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7
Q

CURRENT OR NON-CURRENT: Trade and other receivables

A

NON-CURRENT

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8
Q

CURRENT OR NON-CURRENT: Inventories

A

CURRENT

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9
Q

Cash on hand and cash in bank is valued at

A

face amount

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10
Q

Cash on hand and cash in bank is treated as

A

Current asset as part of line item cash and cash equivalents provided unrestricted for current operations

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11
Q

Cash in foreign currency is valued at

A

current exchange rate

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12
Q

Cash in foreign currency is treated as

A

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

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13
Q

Cash deposits in foreign countries is valued at

A

current exchange rate

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14
Q

Cash deposits in foreign countries is treated as

A

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

If subject to restrictions and amount is material, shown as part of non-current assets

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15
Q

Cash in closed-bank or under receivership is valued at

A

net realizable value

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16
Q

Cash in closed-bank or under receivership is treated as

A

Current asset as part of line item cash and cash equivalent provided unrestricted for current operations

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17
Q

Bank overdraft is valued at

A

excess amount drawn against deposit

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18
Q

Bank overdraft is treated as

A

Current liability and not offset against bank account with debit balance except (1) amount is immaterial and (2) there are two or more bank accounts maintained in one bank

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19
Q

Compensating balance is valued at

A

face amount

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20
Q

Compensating balance is treated as

A

Current asset as part of line item cash and cash equivalent provided not restricted for withdrawal.

If restricted and related loan is short term – presented as a separate item in current assets

If restricted and related loan is long-term – presented as noncurrent investment

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21
Q

Petty cash fund is valued at

A

net amount established

22
Q

Petty cash fund is treated as

A

Current asset and part of line item cash and cash equivalent. Petty cash unreplenished vouchers should be excluded

23
Q

Post dated checks are valued at

A

face amount of check
issued/received

24
Q

Post dated checks are treated as

A

Post dated checks received from:

a. Customers – treated as receivables (part of line item trade and other receivables)
b. Suppliers/ creditors – liability

25
Q

Accounts/ notes
receivable are valued at

A

Initially valued at face amount of original invoice price.

Subsequently valued at net realizable value

26
Q

Accounts/ notes
receivable are treated as

A

Current assets and part of the line item trade and other receivable

27
Q

Short-term loans and other receivables are valued at

A

fair value usually equal to original exchange price

28
Q

Short-term loans and other receivables are treated as

A

Current assets and part of the line item trade and other receivable

29
Q

Non-interest bearing long term loans and other receivables are valued at

A

face value

30
Q

Non-interest bearing long term loans and other receivables are treated as

A

Noncurrent asset as long term investment or other noncurrent assets, whichever is
appropriate

31
Q

interest bearing long term loans and other
receivables are valued at

A

Initially valued at present value.

Subsequent acquisition, valued at amortized cost

32
Q

interest bearing long term loans and other
receivables are treated as

A

Noncurrent asset as long term investment or other noncurrent assets, whichever is
appropriate

33
Q

Trading securities (debt or equity securities) are valued at

A

fair value usually equal to original purchase price plus all cost directly related to the acquisition

34
Q

Trading securities (debt or equity securities) are treated as

A

Current assets as a separate line item after cash and cash equivalents

35
Q

Available for sale securities are valued at

A

fair value

36
Q

Available for sale securities are treated as

A

Usually classified as noncurrent asset unless held for less than 1 year in which case it will be shown as current assets

37
Q

Held to maturity
securities are valued at

A

Initially valued at fair value

Subsequent to the acquisition, valued at amortized costs

38
Q

Held to maturity
securities are treated as

A

Non-current assets

39
Q

Inventories are valued at

A

lower of cost or net
realizable value

40
Q

Inventories are treated as

A

Current assets as one line item INVENTORIES

41
Q
A
42
Q

Investment in equity
securities are valued at

A

cost

42
Q

Sinking fund is valued at

A

cost adjusted for
other assets in the fund

43
Q

Investment in equity
securities are treated as

A

Noncurrent asset as one line item LONG TERM INVESTMENTS

44
Q

Sinking fund is treated as

A

noncurrent as part of line item long term investment. If related bonds payable is reclassified to current liabilities, sinking fund is shown as part of the current asset

45
Q

Noncurrent funds are valued at

A

cost as adjusted for other assets in the fund

46
Q

Noncurrent funds are treated as

A

Noncurrent asset as part of the line item LONG TERM INVESTMENT

47
Q

Property plant and
equipment is valued at

A

cost of acquisition

Subsequent to acquisition, valued using cost model or revaluation model

48
Q

Intangibles are valued at

A

Initially, valued at cost

Subsequently, valued using cost model or revaluation model

49
Q

Intangibles are treated as

A

Classified as noncurrent assets as one line item INTANGIBLE

50
Q

Liabilities are valued at

A

Initially, valued as fair value

Subsequently, measured at amortized cost

51
Q

Liabilities are treated as

A

current if they meet the criteria for current liabilities, else classified as noncurrent liabilities

Financial Analysis and Reporting (9 decks)

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