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Flashcards in Deck 28 Deck (20):
1

Journal entry for purchasing a fixed asset?

Debit the asset and credit an expense

2

Journal entry to record costs incurred to date:

Dr. Construction in progress and Cr. Cash

3

Progress billings in excess of cost and estimated earnings:

Current liability account

4

Costs and estimated earnings in excess of progress billings:

Current asset account

5

Rule for leasehold improvements/renovations:

Capitalize and amortize the shorter of the different lives

6

Employee's compensation for future absences (vacation) should be accrued if:

1) services have been rendered; 2) obligation relates to vested or accumulated rights; 3)Amount can be reasonably estimated; and 4) payment is probable

7

What characteristic is the most difficult to report for a governmental entity?

Relevance

8

Net bond liability is equal to

Face amount of bond - bond issuance costs

9

An enterprise fund receives interest on long-term investments; where is this located in Statements of cash flows?

Investing section

10

Any change in ARO after it has been depreciated will be recognized in:

Profit or loss

11

Amount to expense related to software costs (two things)

1) amortization expense and 2) any impairment loss

12

How does purchasing/issuing/reissuing shares affect outstanding shares?

Purchase: decrease; issue: increase: reissue: increase

13

Lease began on 12/31 and first payment was made on 12/31, is there any interest during the first year?

NO (accrue interest if lease began earlier in the year)

14

Acquisition costs associated with a business transaction must be:

Expensed as incurred

15

Difference between internal service/enterprise funds

Internal service: service internal users (one department services another); Enterprise: services the public ex: utilities

16

Life insurance policies are recorded at what amount?

Cash surrender value (FMV) less any loans against the policy

17

Amortization of prior service cost =

Unrecognized prior service cost/remaining service life

18

Gain amortization for defined benefit pension plan =

(Excess of unrecognized gain over he greater of 10% of beg PBO or 10% of beg. FV plan assets)/ average remaining service life

19

How does the purchase of treasury stock affect equity and EPS?

Decrease equity and increase EPS

20

What should Marvin record as the current maturity on the lease at year end?

Total amount of amortization