Flashcards in FAR Deck (30):
FASB ASC 718-10-30-2 requires a method of accounting for stock-based compensation plans that is based on:
The price-to-earnings ratio
the relationship between the stock price per share to the earnings per share
A corporation issuing stock should charge retained earnings for the market value of the shares issued in:
a 10% stock dividend.
Do liquidation preferences need to be disclosed?
A deferred tax liability a deferred tax asset is a .
is a credit balance (a future taxable amount) and
deferred tax asset
debit balance (a future deductible amount)
Royalty expenses should be recognized in the income statement
as they accrue, as incurred.
The retail inventory method includes which of the following in the calculation of both cost and retail amounts of goods available for sale?
The service cost component of Visor's net periodic pension cost is measured using the:
projected benefit obligation.
What cost should be included in the cost of manufactured goods?
Should interest costs be capitalized to inventories manufactured routinely in large quantities?
Interest costs should not be capitalized to inventories manufactured routinely in large quantities.
When a right to return is allowed, sales revenue is often?
deferred until the right of return lapses unless all six required conditions are met sooner than that
Which is the most appropriate financial statement to use to determine if a company obtained financing during a year by issuing debt or equity securities?
Statement of cash flows
Wren Co. sells equipment on installment contracts. Which of the following statements best justifies Wren's use of the cost recovery method of revenue recognition to account for these installment sales?
There is no reasonable basis for estimating collectibility.
What is the purpose of reporting comprehensive income?
To summarize all changes in equity from nonowner sources
What are the Statements of Financial Accounting Concepts intended to establish?
The objectives and fundamental concepts that will be the basis for development of financial accounting and reporting guidance.
Which of the following would be reported as a decrease in the statement of changes in net assets available for benefits of an employee benefits plan?
Benefits paid to participants
For the purpose of estimating income taxes to be reported in personal financial statements, assets and liabilities measured at their tax bases should be compared to assets and liabilities measured at their:
estimated current value (assets) and historical cost (liabilities).
According to the FASB conceptual framework, which of the following does relates to both relevance and faithful representation?
Comparability, Verifiability, Timeliness
From the prior year to this year, service costs should usually be ________ because the employees are accruing more benefits with their additional service years.
Service cost keeps track of the ___________ owed to employees from their additional year of service.
From the prior year the funding of the benefits to the plan was made, but the projected benefit obligation had yet to be set up, and thus the plan was ________..
Interest expense is the carrying value of the bonds multiplied
Bond or premium amortization is the difference
in interest expense and cash interest paid.
Donated assets should be recored at
When are Organization costs are start-up costs and are required to be expensed
Liquidating dividends are distributions to shareholders from other contributed capital accounts rather than
A liquidating dividend represents a return ___ the shareholders' investment
A cash dividend represents
return on investment to shareholders.