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
When does partnership dissolution occur
When there is a change in ownership, ie new partners join, a partner dies or retires. The business can continue under new ownership
The financiing activities section of the stmt of cash flows includes items from which section of the B/S
Noncurrent Liabilities and equity
The investing activities section of the stmet of cash flows includes items from which section of the B/S
Noncurrent assets
When the expected return on pension plan assets differs from the actual return, this is called:
Actuarial Gain/Loss
the unamortized portion of prior svc costs are accounted for in
OC (FRACA) Adj for pension plans
What effects does a stock split have on the # of shares
of shares increases, par value per share decreases
What is the focus of fiscal accountability
compliance with laws and reg’s
An entity is developing software to be sold. All costs are expensed as R&D expense until the entity reaches what point
The point of Technological Feasibility
Name the 2 types of revenue earned on an installment sale
Realized gp and interest income
What are the 3 approaches to measuring fair value
Market, Income, and Cost
When is revenue recognized under the modified accrual basis
When it is measurable and available
How is an investment in a closely held business presented on a personal fin stmt
Appraised value
How are assets and liabilites presented on a personal fin stmet
estimated current value
