Deck1

Question 1

How is Total Other Comprehensive Income calculated

Answer 1

= Net income +/- Comprehensive Income(net of Tax)

Question 2

Where is Accumulated(total) comprehensive income reported

Answer 2

reported in SE portion of balance sheet

Question 3

what is included in comprehensive income - FADUP

Answer 3

Foreign currency translation
AFS Sec changes in FV that were previously impaired
Derivate
Unrealized Gains and Loss on AFS Securities and Debt
Pension

Question 4

what is the formula for Basic EPS

Answer 4

=NI-preferred dividends/ Weighted avg common shares

Question 5

what is the formula for Diluted EPS

Answer 5

=NI-preferred dividends+After tax interest on convertible debt/ Weighted avg common share + Dilutive common shares

Question 6

When FASB makes an amendment to the FASB Accounting Standards Codification they issue what?

Answer 6

A proposed accounting standards update

Question 7

For a nongovernmental not for profit organization name the four classifications of the statement of functional expenses. PFMM

Answer 7

PFMM
Program Services
Fundraising
Management
Membership

Question 8

When a company factors its receivables explain the difference between factoring with recourse and factoring without recourse.

Answer 8

With recourse - is where the seller agrees to pay the factor, if the customer fails to pay the factor.
Without recourse - is where the seller is not responsible to pay the factor, if the customer does not pay the factor.

Question 9

Explain the difference between assignment and pledging of AR.

Answer 9

Assignment —When AR is assigned, the borrower assigns rights to specific accounts receivable as collateral for a loan. The lender has the right to seek payment from these receivables should the borrower (original creditor for the AR) default on the loan. The borrower reclassifies the receivables as accounts receivable assigned, a subcategory of total accounts receivable. The borrower maintains the receivable records, and as cash is received, it is remitted to the lender in payment of the loan. The loan and the receivables are not offset on the borrower’s balance sheet. When the loan is repaid, any remaining accounts receivable assigned are returned to ordinary accounts receivable status.
Pledging of AR—Pledging of AR is less formal than assignment. The financial institution does not have the right to specific accounts receivable cash flows, the company who pledges their receivables retains title to and is responsible for collecting the receivables. pledging gives the right to use AR as collateral to the financial institution.

Question 10

If a company recovers $750 in AR that was previously written off as uncollectible what would the JE be?

Answer 10

AR 750
ALL DA 750
Cash 750
AR 750

Question 11

Describe FIFO periodic

Answer 11

What was acquired at beginning of the period is sold first. Regardless of when the sale occurred. Ending Inventory would consist of purchases at end of month.

Question 12

Describe LIFO periodic

Answer 12

What was acquired at end of the period is sold first. Regardless of when the sale occurred. Ending Inventory would consist of purchases at beginning of month.

Question 13

Describe FIFO perpetual. For example sold inventory mid month 15th how would you value CGS and EI

Answer 13

Start with inventory sold on day 1,2,3,4….-14th as items sold. EI would be what is left over and would mostly consist of purchases from 31st-15th and what was left over after sale on the 15th (which would most likely be purchases on the 15,14,13…..

Question 14

Describe FIFO perpetual. For example sold inventory mid month 15th how would you value CGS and EI

Answer 14

Start with inventory sold 15,14,13,….-1st as items sold. EI would be what is left over and would mostly consist of purchases from 31st-15th and what was left over (which would be most likely purchases on day 1,2,3…..