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Something Flashcards

1
Q

Types of special purpose funds

A

Petty cash
Sinking fund
Payroll cash account

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2
Q

How is gain on death of employee calculated

A

Life insurance proceeds- cash surrender value

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3
Q

Increases to retained earnings

A

Net income

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4
Q

Decrease in retained earnings

A

Property dividends

Cash dividends

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5
Q

What is plugged to APIC

A
  • When stock is issued, the difference between par and market value
  • under the cost method, excess of proceeds over cost of T/S sold
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6
Q

What reduces bond proceeds

A

Stock warrants

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7
Q

Total cost of equipment =

A

Cash paid + note( net of discount)

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8
Q

What date do we recognize termination benefits

A

Date of communication to employees

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9
Q

Units of production depreciation method calculation

A

(Cost- salvage)/ total # of units

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10
Q

Original bond price is reduced by

A

Interest accrued

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11
Q

COGS

A

=Sales x (1-GP%)
OR
=BI+ Purchases(net)-EI

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12
Q

Annual required pension contribution is recorded as what on the financial statements

A

Expense

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13
Q

Bond issue costs are amortized over

A

The life of the bond

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14
Q

Calculation of Ending Inventory

A

BI + Net Purchases- COGS

- also equals avg inventory

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15
Q

Bond carrying value at retirement

A

=FV of bonds retired - unamortized bond issued costs

  • remember to prorate for the share of bonds retired
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16
Q

AFS

A
  • Recorded at FV
  • temporary declines are recorded in OCI
  • permanent declines are written down to FV and recorded in current earnings
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17
Q

Extraordinary Items

A
  • not recorded for IFRS

- eliminated from GAAP . Now treats same as if unusual and infrequent now and includes in continuing operations

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18
Q

Initial cash debits for bonds issued

A

-for FV of bond + accrued interest less bond discount

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19
Q

Initial Bond credits

A
  • Bonds Premium
  • Bonds Payable( FV of bond)
  • interest payable
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20
Q

Difference between Bond interest expense and Bonds payable

A
  • bonds interest expense is carrying value at effective interest rate
  • bonds payable( interest paid) is state rate x FV of bond
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21
Q

Characteristics of Bonds Discount

A
  • debit balance
  • amortized over life of bond with a credit
  • carrying value increase over time to get to the Face Value
  • effective interest rate is higher than the state interest rate
    - interest expense is greater than cash interest( interest payable)
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22
Q

Fair Value Hedge

A
  • reported at FV

- must disclose when a hedged firm commitment no longer qualifies as a FV hedge

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23
Q

Cash Flow Hedge

A
  • recorded at cost ?
24
Q

Capital Expenditures

A
  • no current deduction therefore must recognize in the form of depreciation amortization or depletion
25
Q

Effective interest calculation

A

= time period x effective interest x carrying value of bonds

26
Q

memo entry

A
  • rights of stock issued without consideration
27
Q

Net Increase in SHE

A
  • gain on settlement of debt + increase in SHE (shares issued x FV)
28
Q

capital lease

A
  • if lease term exceeds 75% of assets useful life
  • lessee capitalizes lease at amount = PV of minimum lease payments =amount due at end of year x ordinary annuity for n periods at x %
  • include amount of bargain purchase option
29
Q

Interim reporting

A
  • integral part of annual reporting

- uses effective annual income tax rate

30
Q

OCI

A
  • has a normal credit balance

- unamortized prior period service costs for defined benefit plans is a debit here

31
Q

Cumulative dividends

A
  • are annul requirement calculated at par x cummulative %
32
Q

DGP

A

= GP% x accounts receivable

33
Q

Bonds paid semiannually

A
  • bond interest paid twice a year

- each time 50% of full year interest rate

34
Q

Statement of cash flows from financing activities

A 
Inflows
- proceeds from the sale of stock
Outflows
- payment for early retirement of long- term bonds
- dividends paid ( not declared)
35
Q

Operating activities

A

Starts with Net Income

Inflows

  • net change in a/r
  • opposite change in allowance for uncollectible accounts
  • net change in prepaid expense
  • opposite change in accounts payable
36
Q

HTM

A
  • recorded at cost
  • no unrealized gain or loss
  • reclassified to trading securities
  • reclassified to AFS adjust
37
Q

Compensation expense

A
  • record at FV at grant date / service period
38
Q

How to allocate purchase price of securities when bought in a group

A
  • allocate pro rata
39
Q

Under IFRS lawsuits are recorded

A
  • at best estimate

- discounted to PV

40
Q

temporary difference creating dta

A
  • net of temporary difference before dividends deductions minus dividends received deduction
  • investment account ok for book but different for tax
41
Q

Payroll tax liability

A

= federal tax expense + employee FICA + employer FICA

42
Q

Transfer of resources been and among funds

A

-reported in the governmental fund operating segment as other financing sources or other financing uses

43
Q

Eps

A

= net income/ Common shares outstanding

44
Q

Price to earnings

A

= market price /Eps

45
Q

If prices remain unchange

A

LIFO and FIFO will yield similar results.

46
Q

If prices rise, which of the following will happen

A

LIFO will result in smaller inventory costs and larger cost of goods sold than FIFO.

47
Q

If prices decline, which of the following will happen

A

FIFO will result in smaller inventory costs and larger cost of goods sold than LIFO

48
Q

Which of the following methods comes closest to matching current costs against current revenues

A

LIFO

49
Q

Discontinued operations result from a disposal that represents a strategic shift. Examples

A
  • a sale of a product line that represents 15% of the entity’s total revenues;
  • a sale of a geographical area that represents 20% of the entity’s total assets;
  • a sale of the entity’s stores in one of its two types of store formats that have provided 15% of current-period net income and have, in the past, represented 30% to 40% of the entity’s net income;
  • the sale of an equity method investment representing 20% of the entity’s total assets; or
  • the sale of 80% of a product line representing 40% of total revenue, but only if the entity retains 20% of its ownership interest.
50
Q

derivative instrument has three characteristics

A
  1. There is an underlying or notional amount.
  2. There is little or no initial net investment.
  3. Its term requires or permits net settlement
51
Q

IFRS uses different stock account titles than U.S. GAAP

A

Share Capital

52
Q

IFRS accounts for treasury stock retirements only by charging

A

an excess in purchase price and issue cost to paid-in capital.

53
Q

IFRS includes a “revaluation surplu

A

revaluation of property, plant, and equipment; mineral resources; and intangible assets.

54
Q

Goodwill

A

Goodwill is the excess of the fair value of the consideration given over the fair value of the net identifiable assets acquired.

55
Q

compensation expense

A

restricted stock is earned equally over the vesting period

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