Deck 9 Flashcards Preview

FAR 2 > Deck 9 > Flashcards

Flashcards in Deck 9 Deck (20):
1

Journal entry for amount contributed to pension plan by the company

Dr. Pension benefit liability and Cr. cash

2

Liabilities for post employment benefit are accrued if the following conditions are met:

1. Employer's obligation is attributable to services rendered; 2. Obligation relate to rights that vest or accumulate; 3. payment of the compensation is probable; and 4. amount can be reasonably estimated

3

Sick pay benefits must be accrued for

Vesting (not accumulating rights)

4

Deferred income tax expense =

current period temporary differences x future enacted tax rate

5

Current income tax expense =

Taxable income x tax rate

6

Deferred income tax liability =

Future taxable amounts x future enacted tax rate

7

Under IFRS, in the BS, all deferred tax assets and liabilities will be classified as

Noncurrent

8

Deferred tax asset

Future financial income > future taxable income

9

Effective tax rate =

Income tax expense/pretax income

10

When is a valuation allowance needed?

When it is more likely than not that part or all of a deferred tax asset will not be realized

11

Changes in tax laws or rates are recognized in what period?

Period of change (considered a change in estimate)

12

Tax carrybacks are considered a

Tax benefit (asset)

13

Increase in valuation account for Deferred tax assets increases what other account

income tax expense

14

Impairment loss related to AFS security should be recorded in

OCI

15

Ending retained earnings =

Beg income - cash dividends - property dividends

16

Gains on TS transactions are credited to

APIC - TS ( not RE)

17

How is APIC affected in issuing stock, purchasing TS, and reissuing TS?

Stock and reissuing TS: Increase APIC; purchase TS: decrease APIC

18

Liquidating dividend is the amount of

Dividends that is greater than RE

19

How do increases in expenses affect RE?

Decreases RE

20

Shares of common stock outstanding does not include what?

Shares of convertible preferred stock