Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR > 3. General Purpose Financial Stmt > Flashcards

3. General Purpose Financial Stmt Flashcards

1
Q

BS element

A

Current, non current

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Current assets definition

A

Expected to be consumed or sold during a normal operation cycle or 12 mo, whichever is longer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Current liability

A

Expected to be extinguished through the use of current assets or by incurrence of other CL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Current ratio

A

CA / CL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Quick or acid test ratio

A

Cash, ST investments, AR / CL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Internally generated GW on BS?

A

No, expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Classify accrued liab, deferred taxes

A

AL: CL
DT: NCL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What valuation accounts?

A

Used to increase/decrease BV of an item to current value = adjunct accts
Not all contra or adjunct accts are valuation accts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Examples of valuation accts?

A

Allowance for uncollectible accts (contra), Valuation allowance (adjunct)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Examples of contra and adjunct accts?

A

Accum. Depreciation (contra), Bond premium (adjunct), Bond discount (contra)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What’s liquidation value?

A

MV of net identifiable assets. Remaining after paying off liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What’s market capitalization?

A

Total value of a firm’s outstanding stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

GW computing using market capitalization

A

Market capitalization - MV of net identifiable assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does expenses provide that losses do not?

A

Benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does comprehensive income includes?

A

NI and OCI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Income Stmt structure and presentation for top and bottom parts

A

Top: income relating to operations, no specific format
Bottom: unrelated to continuing operations, specific presentations, discontinued operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Operating margin included in single step or multiple step format?

A

Multiple step

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Stmt of comprehensive income can be presented separately or together?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Individual component of OCI must be reported where?

A

BS, stmt of OE, or footnote

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How many yrs of OE required by SEC?

A

Three

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How to calculate average issue price: par $2, increase in CS $2000, APIC $10,000.

A

$2000/2=1,000 shares. $10,000/1,000=$10. $2+10=$12

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Cash equivalent examples

A

Treasury bills, money market funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Is investment in equity securities cash equivalent?

A

No, because they are not convertible to a known amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Policy to designate cash equivalent should be disclosed?

A

Yes. If the policy changes, it’s a change in accounting policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Presentation of Stmt of CF

A

OIFF (operating, investing, financing, foreign currency translation)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Can disclosure of non cash activities be on the face of stmt of CF?

A

No

27
Q

Which method shows the actual operating activities? Direct or indirect?

A

Direct method

28
Q

Divi rcvd which activity?

A

Operating

29
Q

Divi pmt, which activity?

A

Financing

30
Q

Interest rcvd and pd, which activity?

A

Operating

31
Q

Examples of investing activity

A

Sales/purchase of LT assets, collection of loan principal, purchase/disposals of debt/equity securities, lending,

32
Q

Examples of financing activity

A

Sale/purchase of own stock, proceeds from borrowing, paying back lenders

33
Q

Stmt of CF: add back

A

Depreciation, regular amortization, depletion, losses, increase in unearned revenue

34
Q

CF: subtract

A

Gains, amortization on discount on bond investment, premium on bond payable, increase in CA, decrease in CL, decrease in unearned revenue

35
Q

Risk/uncertainties disclosure required by GAAP?

A

Yes

36
Q

Risks and uncertainty required in condensed or summarized interim stmt?

A

No

37
Q

Proposed changes in government regulations, accounting principles, possible effects of wars, deficiency in internal controls - a part of risks and uncertainties?

A

No

38
Q

Disclosure required items

A

Nature of operations, use of estimates, certain significant estimates (if probable near term - yes), significant concentration (if severe - more than material), management going concern assessment

39
Q

When is “subsequent”?

A

After the date of financial stmt, but before issuance

40
Q

Do conditions existed at the date of BS require recognition? If not existed, treatment?

A

Yes. Footnote only

41
Q

Stock dividend, splits required to adjust financial stmt if occur after BS date but before issuance date?

A

No

42
Q

Inventory turn over

A

COGS / Inbentory

43
Q

Receivable turn over

A

Sales / AR

44
Q

Fixed asset turn over

A

Sales / Fixed assets

45
Q

Total asset turn over

A

Sales / Total assets

46
Q

Total debt ratio

A

Total assets - Total equity / Total assets

47
Q

Debt to equity ratio

A

Total debt / Total equity

48
Q

Times interest earned ratio

A

EBIT / interest

49
Q

OE ratio

A

Total OE / Total assets

50
Q

Profit margin

A

NI / Sales

51
Q

Return on assets

A

NI + (1-tax) x interest / Average assets

52
Q

Return on equity

A

NI / Average equity

53
Q

EPS

A

(NI - current pref. divi) / weighted average # of shares outstanding

54
Q

PE ratio

A

Market price com. stock / EPS

55
Q

Com. Stock divi payout ratio

A

Cash divi to com. shareholders / NI

56
Q

Per share basis

A

Cash divi per com. shareholders / Earning per com share

57
Q

Com. Stock yield

A

Divi per com share / market price per com. share

58
Q

BV per com. share

A

Com. Shareholders equity / # of outstanding com. shares

59
Q

BV per pref. share

A

Pref. Shareholders equity / # of pref. shareholders stock

60
Q

How is the cash equivalent reported on stmt of CF?

A

No effect

61
Q

Is cash flow per share reported on stmt of CF?

A

Not allowed

62
Q

Is pricing of inventory a significant account policy?

A

Yes

63
Q

Does indirect method display interest paid, net of amounts capitalized and income tax paid?

A

Yes

FAR (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions