Yaeger Flashcards
What method is used to account for business combinations
The Acquisition Method
Define a business combination
A transaction wherein a entity obtains control over another entity (over 50% of voting stock)
What does operational accountability measure
How effective and efficient the org has been
What amounts are included in the capitalized cost of an asset
All costs incurred in order to put the item into use, i.e. invoice price, sales tax, installing, and testing
What is GAAP treatment of start-up costs
GAAP-expensed, Tax law allows for capitalization over 15 yrs
Name some examples of permanant tax differences
Municipal bonds, Lifeinsurance premiums where the org is the beneficairy, fed income tax exp
In order to classify debt securities as held to maturity, what req. must be met
the entity must have the ability and the intent to hold it to maturity
When investments are reclassified from AFS to TS, how do you recognize the U/R gain/loss
The U/R gain/loss is recognized immediatley on the I/S upon reclassifiaction
The entity that has controlling financial interest over a Variable Interest is called the
Primary Beneficiary
Held to Maturity securities are carried at what amount on the B/S
Amortized Costs
Which type of NFP entity is required to present a stmt of functional expenses
Voluntary Health and Welfare Organizations
When is it appropiate for a NFP entity to record contributed svc’s
- The svc’s create or enhace nonfinancial assets 2. the svc requires specialized skills 3. The entity would have had purchased the svc’s if they were not contributed
Name the proper titles fo r the NFP financial stmt’s included in the fiduciry funds
Stmt of fid net position and stmt of changes in fid net position
Which cash flow method is permitted by nf; entities
direct and indirect
Name the 3 expense categories that must be presented in a nfp entity’s stmt of functional expenses
programs, mgt and general, and fund raising
