Flashcards in Deck6 Deck (20):
The SEC comments on accounting and auditing issues are called
Financial Reporting Releases (FRR's)
What division of the SEC oversees compliance with security acts
Division of Corporate Finance
The mission of the SEC is to protect (a) corporations (b) investors
Regulation S-X governs the form and content of financial statement disclosures T or F
Large accelerated filer ($700million) must file quarterly reports_______ days after the end of the period
40 days - note: none of the SEC guidelines are 30 days.
How many days does an excelerated filer (not $700million) have to file 10-K after the end of the fiscal year?
75 days - LARGE accelerated filers only have 60 days
Is the "product market share" a mandatory inclusion in the 10-K (annual report)?
Which financial statement is dividends reported on?
Statement of owners equity
Reporting accounts receivable at Net Realizable Value is a departure from the accounting principle of Historical Cost. T or F
Net Realizable Value is a reasonable estimate of __________.
What is Net Realizable Value?
The amount that is expected to turn into cash
A gain/loss has to be considered "infrequent" and "unusual" to be left out of ordinary income. Where is it put then?
It is put below Income from Continuing Operations
What are General and Administrative Expenses?
Expenses that arent attributable to specific activities. G and A costs benefit the Entire firm instead of one specific function.
A Material Loss should be reported separately as a component of Income from Operations when it is Infrequent but not Unusual
G&A expenses benefit the entire firm and not just one specific unit
Only extraordinary income is reported net of taxes
Contingencies are disclosed when the occurrance of the liablility is "probable" not just "possible"
Beg Inv + COGM - End Inv = Cost of Sales
Unrealized gains on available for sale securities are recognized as income