Deck 15 Flashcards Preview

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Flashcards in Deck 15 Deck (20):
1

Governmental funds are classified by

Character

2

Transfers between governmental funds are classified as

Other financing sources/uses

3

Proprietary funds are typically classified by

Object

4

Examples of deferred inflows of resources

1. Fees that are billed in advance and 2. revenue that is not measurable and available until a later year

5

Fair value definition

Price received to sell an asset or paid to transfer a liability

6

Variable interest

We have a financial stake in another company

7

Upon formation of a partnership, tangible assets are recorded at

Fair value

8

What does new partner get when admitted to a partnership under bonus method? (1/3 interest)

Total capital contribution (including new partner) divided by 3

9

Order of distribution of assets in a liquidation of a partnership

1. Creditors; 2. partners who are creditors; and 3. Partners capital

10

Bonus method vs goodwill method in a withdrawal

Bonus: change the individual partners capital accounts but no change to assets; Goodwill: change accounts and total assets

11

Ending ARO =

Beg. ARO + PV of new ARO + accretion expense - AR) settled

12

Journal entry to record ARO

Dr. ARC - asset; Cr. ARO - liability; both amounts recorded at PV

13

Journal entry to record accretion expense each year

Dr. Accretion expense and Cr. ARO

14

Recognize ordinary gain/loss (troubled debt)

FV of asset - CV of asset

15

Gain on restructuring =

CV of liability (plus any accrued interest) - FV of asset

16

Troubled debt restructuring involving modification of terms; compare what to the carrying value of liability?

Total future cash payments

17

Total interest revenue =

total cash received - PV of note

18

Notes receivable is recorded at

Present value

19

Note payable issued that is due in 9 months; it should be reported at:

Face amount (PV if due later than 1 year)`

20

Accrued interest payable =

Original note - principal payment x interest rate and time