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Flashcards in 20A Wrong Answers Deck (10):
0

Personal statement of financial condition:

Only estimated amount of income taxes on differences between estimated current values and current amounts of assets and liabilities is...

Presented between liabilities and net worth

1

Personal statement of financial condition:

The difference between estimated current values of assets and liabilities is reported between...

Liabilities and net worth

2

Personal statement of financial condition:

Tax on income earned during the first quarter of the year is...

A current tax liability

3

On a personal statement of financial condition, if someone owns 50% of the stock...

The equity method is irrelevant

Fair value is used if known

4

When calculating a vesting interest in a 401K plan, the employees contributions and returns...

Employer contributions?

Best right away, while employer contributions/returns don't
Vest until after specified period

5

Noncancelable personal commitments should be reported at...

Their discounted cash flow

6

3 attributes noncancelable personal commitments must have

1 for fixed or determinable amounts

2 not contingent on others life expectancies or occurrence of
Particular event

3 don't require performance of future service by others

7

not contingent on others life expectancies or occurrence of
Particular event examples

Disabilities and death

8

Personal statement of financial condition:

Income taxes payable should include 3 things

1 unpaid income taxes for completed tax years

2 estimated tax for elapsed portion of current year

3 estimated income tax on difference between current value of
Assets, current amounts of liabilities and their respective tax bases

9

2 types of personal financial statements

1 statement of financial condition

2 statement of changes in net worth