F2 - Financial Reporting & Disclosures Flashcards
(7 cards)
1
Q
SIM
So for Subsequent Event
A
If event happened, or you know it will happen BEFORE financials stmts have been issued you handle it
Is a contingent Liability - record exp and liability (needs to be netted if already recorded)
If not probable or reasonable probable then disclosure only
2
Q
IF CIP IS GREATER THAN PROGRESS BILLING, ITS A CURRENT ASSET
A
IF PROGRESS BILLINGS IS GREATER THAN CIP, ITS A CURRENT LIAB
3
Q
Conversion from Cash Basis Rev to Accrual Basis
A
Cash receipts from customers
Add END AR
SUB Beg AR
SUB END Unearned Rev or Def Rev
Add Beg Unearned Rev or Def Rev
4
Q
Net Profit Margin
A
NI / Revenue
5
Q
Times Interest Earned
A
Earning Before Interest and Taxes / Int Expense
6
Q
Debt To Equity
A
Total Debt / Total Equity
7
Q
Days in Inventory
A
Ending Inventory / (COGS/365)
