Day 30 / Cram Day Flashcards
What is included in OCI
PUFI
Pension adjustment
Unrealized G/L on AFS
Foreign currency
Instrument specific credit risk
MCQ-15674
When are software costs capitalized?
Costs associated with software that is developed to be sold, leased, or licensed may be capitalized once technologically feasible
Capitalize from technologically feasible until the date it is ready to be sold
MCQ-08579
How are capitalized software costs amortized?
The greater of amortizing of:
- Amortization resulting from the percentage of revenue
OR
- SL
MCQ-12656
Sum of the Years Digits Method of depreciation:
Basis for depr = Cost - Salvage Value
Estimated useful life = N
S = N×(N+1) / 2
Calculate depreciation expense each year
Add Depr expense to Original Purchase Price
= Carrying Amount
MCQ-00142
When is LT debt classified as a Current Liability?
When it matures within 1 year, unless retirement is to be accomplished with other than current assets
MCQ-00361
How should the acquirer recognize a bargain purchase in a business acquisition?
As a gain in earnings at the acquisition date
A & L acquired in a business combination must be valued at FMV
A bargain purchase is when the FMV of the assets is more than the consideration exchanged
MCQ-08232
During periods of inflation, a perpetual inventory system would result in the same dollar amount of ending inventory under a periodic inventory system, under which methods?
FIFO periodic and FIFO perpetual will always result in the same dollar valuation of ending inventory
LIFO or average will not
MCQ-00075
When is the net income of a newly acquired subsidiary included in consolidated net income?
As of the date of acquisition
LOOK THIS UP FOR AJE
MCQ-00421
What does accelerated tax depreciation create?
Accelerated Depr reduces the basis available for future tax projections and creates a deferred tax liability
Equal to the cumulative change in temporary differences multiplied by the tax rate
Note: Municipal bond interest = PERMANENT Difference
MCQ-05070
How should a company report it’s decision from cash basis accounting to accrual basis accounting?
As an error correction (net of tax), by adjusting beg. RE
A change from a non-GAAP to a GAAP method of accounting is an error correction adjusting beg. RE
MCQ-14613
Which method is used to report OCI items net of tax or before related taxes, with one amount shown for the aggregate income tax expense or benefit related to the total of all comprehensive income items?
Trick Question
Both methods can be used, The Single Stmt or the Two Statement Approach can be used
MCQ-07481
In periods of rising costs which inventory method will result in the lowest ending inventory?
Remember: LIFO = Lowest
LIFO
LIFO gives you the highest COGS and lowest Net Income
MCQ-00304
During periods of inflation, how would ending inventory and income tax payable using LIFO be compared to FIFO?
Lower and Lower
MCQ-11081
Governmental Reporting Classifications:
GRSPP SE CIPPOE
Governmental Funds
- General
- Revenue (special)
- Service (debt)
- Projects (capital)
- Permanent
Proprietary Funds
- Service (internal)
- Enterprise
Fiduciary Funds
- Custodial
- Investment
- Private purpose
- Pension and Other Employee Benefit
MCQ-08581
New York City levied property Taxes of $600k for the CY, and estimated that $25k would be uncollectible. What is the journal entry for the general fund to record property tax levy?
Dr - Property Tax Receivable $600k
Cr - Property Tax Rev $575k
Cr - Allowance for Uncollectible $25k
Note: Gov. Funds are subject to Modified Accrual & Recognized revenues will be adjusted for the Allowance or Deferred accounts. NEVER BAD DEBT EXPENSE
MCQ-08276
