F1-F2

Question 1

Form 8-K

Answer 1

Major Corporate Events, asset acquisitions/ disposals, accountant changes, management changes, changes in securities.

Question 2

Basic EPS

Answer 2

Income available to common shareholders/ Weighted Average number of common shares

Question 3

10-Q for Accelerated Filers

Answer 3

40 Days

Question 4

10-K for Accelerated Filers

Answer 4

75 Days

Question 5

Out of the money stock options are antidillutive

Answer 5

True

Question 6

PUFI

Answer 6

Pension Adjustments
Unrealized gains and losses (from sale of debt securities and hedges)
Foreign Currency Items
Instrument specific credit risk

Question 7

Individual components of OCI may be either reported on a before tax basis with an aggregate tax amount reported after these items or individually on a net of tax basis

Answer 7

True

Question 8

Basic EPS

Answer 8

(Net Income -Preferred Dividends)/ WACSO

Question 9

Steps for Par Value Method for Treasury Stock

Answer 9

1. Calculate Gain or Loss (original price - repurchase price)
2. Reverse original entry for shares repurchased: debit treasury stock at par.
3. Credit cash price paid

Question 10

Under the cost method for treasury stock, when do you calculate the gain or loss?

Answer 10

Upon reissuance of shares (G or L = Reissue Price - repurchase price (cost)

Question 11

Dividends are not reported as a liability until the dividends are ______________?

Answer 11

Declared

Question 12

When does the Treasury Stock Cost Method affect retained earnings?

Answer 12

Only when shares are sold below cost and the difference exceeds any APIC from treasury stock.

Question 13

Stock Dividends are not recorded as income on the books of the recipient

Answer 13

True

Question 14

How are gains and losses in the fair value of foreign currency transaction hedges used to hedge a net investment in a foreign operation reported?

Answer 14

OCI

Question 15

How are fair value type foreign currency transaction hedges classified in earnings?

Answer 15

Current Income

Question 16

Who is required to disclose EPS?

Answer 16

All companies with publicly traded common stock or potential commons stock including options, warrants, convertible securities or contingent stock agreements.

Question 17

When are cumulative dividends recorded as a liability

Answer 17

When they are declared

Question 18

If a corporation sells treasury stock at a price that exceeds cost, the excess should be ____________

Answer 18

Credited to APIC

Question 19

Where are gains and losses in fair value currency transaction hedges classified as fair value hedges accounting for?

Answer 19

In Current income/ earnings

Question 20

When calculating income available to stockholders, only the dividend accumulated ____________ the period is subtracted from net income

Answer 20

During

Question 21

Under the remeasurement method, currency gain or loss is included in ________________

Answer 21

Net Income

Question 22

When a property dividend is declared, the fair value adjustment affects ___________

Answer 22

Earnings/ Net Income

Question 23

Unrecognized prior service costs and unrecognized net gains/losses must be reported in ____________________, net of tax, until recognized as part of pension expense through amortization.

Answer 23

AOCI

Question 24

Book value Per Common Share

Answer 24

Common Stockholders equity/ Common Shares Outstanding

Question 25

Entry for a large stock dividend

Answer 25

Dr RE
Cr CS

Question 26

When the cost method is used to account for TS, CS is reported on the BS as __________?

Answer 26

The total shares issued at par value. TS are shown separately as a reduction in equity, not as an adjustment to common stock at par.

Question 27

Participating preferred stock splits dividend distributions with common shareholders only after common shareholders have received percentage dividends ___________ to preferred shareholders

Answer 27

equivalent

Question 28

Shares issuable upon the exercise of a stock option are not considered contingent shares as the option holder ___________

Answer 28

is required to pay the strike price to exercise the options.

Question 29

Unrealized losses in a AFS Equity security must be included in __________ in the quarterly income statement

Answer 29

Net Income

Question 30

A gain that is both unusual and infrequent should be reported as ______________________________

Answer 30

Income from continuing operations

Question 31

A change from LIFO to FIFO is a change in ______________

Answer 31

accounting Principle

Question 32

COGS Formula

Answer 32

Beginning Inv + Purchases - Ending Inv = COGS