F10 - Other Liabilities and Debt Covenants Flashcards Preview

FAR Section - CPA Exam > F10 - Other Liabilities and Debt Covenants > Flashcards

Flashcards in F10 - Other Liabilities and Debt Covenants Deck (4)
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1
Q

How should the discount resulting from the determination of a note payable’s present value be reported on the balance sheet?

A

As a direct reduction of the face value

2
Q

When should dividends be accrued for?

A

When declared

3
Q

T/F: If a note is sold with recourse, it is not discounted to present value

A

True

4
Q

T/F: Loan origination fees are deferred and recognized over the life of the loan as an adjustment of interest income

A

True; it is similar to the treatment of bond discount amortization