Day 3 - Cumulative Exam Flashcards
What pension adjustments are reported in OCI?
- Unrecognized prior service cost
- Unrecognized pension gains
MCQ-07435
ABC received a donation of 2,000 shares of it’s $5 par value common stock from a Stockholder. The stock markets value of the stock was $35 and ABC originally issued the cost at a cost of $25. What amount would SH Equity decrease by?
trick question
None
JE=
Dr - Donated stock @ FMV
Cr - APIC @ FMV
MCQ-01095
What are required disclosures for Comprehensive Income and OCI?
- For each component of OCI, report the changes in accumulated balances
- Report total accumulated OCI on the BS as an item in equity
- The tax impact for each item in OCI must be reported
MCQ-07403
Stock Dividends for common stock should be recorded at FMV by the investor when the investment is accounted for under the Cost or Equity Method?
Neither
Stock Dividends and splits are considered income to the recipient
Investors relocate the investment account balance over more shares, thus DECREASING the value per share
MCQ-01562
ABC declared a 10% stock dividend on 15,000 shares outstanding of $5 par value common stock when the fair value was $10. What is the JE?
Dr - RE $15k
Cr - Common Stock $7,500
Cr - APIC $7,500
MCQ-12614
When the cost method is used to account for Treasury stock, common stock on the BS is reported as?
Common Stock = Total # Shares issued × Par Value
MCQ-05396
Amortization of prior period pension service costs affects accumulated OCI how?
Initially period service costs decrease OCI
However, when they are AMORTIZED Accumulated OCI will Increase
MCQ-07468
ABC issued 100,000 shares of common stock. Of these 5,000 were held as treasury stock. How many stocks were issued and outstanding?
100,000 = Issued
5,000 = Treasury Stock
95,000 = Outstanding
MCQ-00976
For stock JEs APIC equals?
Par Value - Original Selling Price
MCQ-00982
