Deck 25 Flashcards Preview

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Flashcards in Deck 25 Deck (20):
1

Donor-imposed restrictions that are met in the same period they are received may be recorded as:

Unrestricted support (contribution revenue)

2

Journal entry for property taxes collected in advance

Dr. cash and Cr. deferred inflows of resources

3

Reciprocal interfund activity

Includes exchange-type transactions between funds (interfund loans and interfund services provided)

4

Nonreciprocal interfund activity

Represents non-exchange transactions between funds (interfund transfers and interfund reimbursements)

5

Analysis of significant budget variances shows up where in the GWFS?

MD and A

6

Most likely cause of a decline in bond's market value?

Increase in interest rates

7

Conditional promises (ex: uncertainty about someone's death); revenue recognition?

No revenue recognition in the current year

8

Unconditional gift is recognized at:

Fair value as an unrestricted donation and an offsetting expense

9

3 methods to create a new partnership interest with investment of additional capital

1) exact 2) bonus and 3) goodwill

10

3 Conditions that must be met in order to consolidate a VIE

1) Variable interest; 2) VIE; and 3) Is there a primary beneficiary

11

Ending ARO =

Beg. ARO + PV of new ARO + accretion expense - settlement paid

12

Accretion expense =

Beginning ARO x risk-adjusted rate

13

initial journal entry for ARO

Dr. Asset retirement cost (asset) and Cr. Asset retirement obligation (liability) (both at PV)

14

Journal entry for accretion expense

Dr. Accretion expense and Cr. ARO (liability)

15

Troubled debt restructure; Gain =

Carrying amount of the payable - FV asset/equity transferred

16

Ordinary gain/loss on troubled debt restricting (transfer of asset) =

Carrying amount of asset transferred - fair value of asset

17

What rate is used to calculate interest income on a note?

Market interest rate

18

Interest revenue earned =

Total cash to be received - PV of note

19

In order for losses to be accrued, they must be both:

Probable and estimable

20

Gain contingencies can not be recognized as revenue until:

They are settled and realized