Deck 17 Flashcards Preview

FAR 2 > Deck 17 > Flashcards

Flashcards in Deck 17 Deck (30):
1

Journal entry to record costs incurred for percentage of completion method?

Debit Construction in progress and credit cash

2

Journal entry to record billings related to percentage of completion method?

Debit Contracts receivables and credit Progress billings

3

Gross profit under cost recovery method

Cash collected - cost of sales

4

Dividends in arrears =

Accumulated dividends - dividends paid (Disclose this amount, not a liability until declared)

5

Bond issuance costs

Direct reduction to the carrying amount of the bond; Amortized over the life of the bond

6

Journal entry to record loss on inventory

Debit inventory loss and credit inventory

7

What happens to carrying value of bond when market rates decrease?

Higher carrying value but lower amortization discount

8

Cash basis income of the company

Not shown on the statement of cash flows

9

Bonds payable is always shown at what amount

Face amount

10

Journal entry to record the conversion of bonds into common stock (under book value method)

Debit bonds payable (face); Credit C/S and APIC; either debit a premium or credit a discount for the CV of bond

11

Accumulated benefit obligation vs. PBO

ABO includes both current and past compensation levels while PBO doesn't

12

Journal entry to record compensation expense

Debit comp. expense and credit APIC

13

conditional promises (dependent on future event) recorded as

Refundable advance

14

Bonds are reported on the balance sheet equal to

Face amount - discount - bond issuance costs

15

Periodic amortization for bonds =

Premium/discount divided by number of periods outstanding

16

Journal entry for bond extinguishment

Debit Bonds payable; credit discount on BP, gain, and cash

17

When is a deferred gain recognized?

When PV of payments is more than 10% of the FV

18

Common stock is always recorded at what amount for bonds payable?

Par value

19

How does the sinking fund increase?

Increases by revenue earned on the investments

20

How to account for temporary market declines?

Not recognized at interim when a turn-around is expected

21

APIC has a normal credit or debit balance?

Increase on the credit side

22

Property in the governmental funds should be capitalized at what amount?

Lower of cost or FV

23

What situation would increase the unassigned fund balance?

Appropriations exceed expenditures

24

Deferred tax assets and liabilities are classified as current or non current based on

Their related asset or liability and the expected reversal date

25

If unrecognized gain/loss balance is less than corridor balance...

No amortization recorded for the gain/loss

26

Gains/losses on disposals of governmental operations are displayed as

Special item

27

Gasoline taxes to finance road repairs is recorded in what kind of fund?

Special revenue fund

28

The term "other financing source/use" is recorded in what category of funds

Governmental funds only

29

Exercise price greater than average market price

Anti-dilutive security

30

Average market price greater than exercise price

Dilutive security