Day 22 Flashcards
ABC has 3 years of net profit and in year 4 they have a $100k loss. What is the result?
The carryforward times the tax rate equals the tax benefit
MCQ-12709
PSU received notice that a recent graduate named PSU as though beneficiary of $10k in the graduates will. Is this recognized in the Stmt of Activities?
No, bc the graduate may change their will and they may live a long time
MCQ-05198
Why is deferred Revenue not included in Comprehensive Income?
It shows as a Liability bc revenue was received before it was earned
MCQ-08562
Cash Flows from operating activities using the indirect method:
Net Income
LESS: Increase in AR
ADD: Increase in AP
MCQ-05698
When does deferred tax expense arise?
Due to temporary differences
Tax-exempt income = Permanent differences
Multiply deferred tax expense by the future tax rate
MCQ-05653
How are debits to accumulated depreciation determined?
Year 1 A/D
ADD: Year 2 Depr Exp
LESS: Year 2 Ending A/D
= Debits to A/D
MCQ-00147
When calculating EPS using the weighted average and year 10 and year 11 are presented, but there is a stock split in year 11. How is this accounted for?
The stock split applies to ALL YEARS being presented when calculating EPS
MCQ-09397
Components of OCI:
Pension Adjustments
UNREALIZED G&L AFS
Foreign Currency Items
Instrument-Specific Credit Risk
MCQ-07375
Equation: Days Sales in AR
Ending AR / (Sales / 365)
MCQ-02641
What is true regarding a discount bond redeemed at a premium to par?
Any unamortized issuance costs will be deducted from the bonds carrying value of the bond at the time the bond issue is redeemed
MCQ-01514
