FAR 2.6 - Special Purpose Frameworks

Question 1

Under the cash basis financial statements, what 2 items are included?

Answer 1

Statement of cash and equity
Statement of cash receipts and disbursements

Question 2

Under the modified cash basis financial statements, whaat 2 items are included?

Answer 2

Statement of assets and liabilities
Statement of revenues collected and expenses paid

Question 3

Under the tax basis financial statements, what 2 items are included?

Answer 3

Statement of assets and liabilities and equity
Statement of revenues and expenses and retained earnings

Question 4

What is the formula that can be used to convert from cash basis revenue to accrual basis revenue?

Answer 4

Cash basis revenue
+ ending AR
- beginning AR
- Ending unearned revenue
+ beginning unearned revenue
= accrual basis revenue

Question 5

What is the formula that’s can be used to convert from cash paid for purchases to accrual basis cost of goods sold?

Answer 5

Cash paid for purchases
+ ending AP
- Beginning AP
- ending inventory
+ beginning inventory
= cost of goods sold

Question 6

What is the formula that can be used to convert from cash payments for operating expenses to accrual basis operating expenses?

Answer 6

Cash paid fr operating expenses
+ ending accrued liabilities
- beginning accrued liabilities
- ending prepaid expenses
+ beginning prepaid expenses
= accrual basis operating expenses