F1 - Income Statement/BS Flashcards

1
Q

Selling Expenses(anything you use for selling)

A
  • wages for sales
  • commissions
  • advertising
  • freight out(shipping cost)
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2
Q

General Admin. Expenses(office work)

A
  • officer salaries
  • legal fees
  • accounting fees
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3
Q

How is Freight - IN capitilized?

A
  • in inventory as part of COGS so need to double book it!!
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4
Q

Int Expense/Int Income are in operating or non operating?

A

NON Operating

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5
Q

When net income is recorded where does it go in BS?

A

Goes to R/E

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6
Q

Other Comprehensive Income (FUPIE)

A
  • Foreign currency translation gain/losses
  • unrelaized holding gains/losses on AFS
  • pension adj
  • instrument-specific credit risk
  • Effective portion of cash flow HEDGES
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7
Q

Total Comprehensive Net Income is:

A

Net income + OCI

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8
Q

Dodd Co.’s debt securities at December 31 included available-for-sale securities with a cost basis of $24,000 and a fair value of $30,000. Dodd’s income tax rate was 20%. What amount of unrealized gain or loss should Dodd recognize in its income statement at December 31?

A

$0 is correct. Available-for-sale debt securities are carried on the balance sheet at fair value. Unrealized changes in fair value between periods are reported in other comprehensive income (“OCI”) for the period.

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9
Q

Discontinued Operating is accrued after:

A

Taxes

“Income from cont. oper after tax”

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10
Q

What is a strategic shift for a component to qualify as discontinued?

A
  • major lines of business
  • major investment in other organizations
  • major geographical areas
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11
Q

First step on held for sale?

A

Find impairment so FV-Book value

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12
Q

Third/fourth step on held for sale?”loss on disc. oper. net of tax”

A

Impairment loss + operating loss = total loss before tax x (1 - tax rate) = loss on disc. oper. net of tax

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12
Q

Year of sale on on the disc. operation we look for the gain/loss of disposal by:

A

Proceed from sale - Adj NBV after impairnment = gain / loss on disposal

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13
Q

When regarding discontinued operations we only recognize when….

A

It was disposed so any accrued loss from previous year wouldnt affect the current year it got disposed only ANY LOSS IN THE SAME YEAR

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14
Q

a material transaction that is “infrequent in occurrence” and/or “unusual in nature” should be presented separately as a component of “income from continuing operations” when the transaction results

A

GAIN or LOSS

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15
Q
A
15
Q
A
16
Q
A