FAR: All: TBS 4/7/2018 Flashcards Preview

CPA: Tiffany's Notes > FAR: All: TBS 4/7/2018 > Flashcards

Flashcards in FAR: All: TBS 4/7/2018 Deck (11):
1

A company can use either the purchase or the pooling method for business combinations.

True or False?

False

2

A newly identified intangible asset must meet the contractual legal or the separability criterion to be recognized as an intangible asset at the time of consolidation.

True or False?

True

3

Identify which of the following items are disclosed as cash or cash equivalents on the balance sheet.

Sinking fund cash (cash or not cash)

Not Cash

4

Identify which of the following items are disclosed as cash or cash equivalents on the balance sheet.

Compensating balances against long-term borrowings (cash or not cash)

Not Cash

5

Identify which of the following items are disclosed as cash or cash equivalents on the balance sheet.

Cash restricted for new building (cash or not cash)

Not Cash

6

Identify which of the following items are disclosed as cash or cash equivalents on the balance sheet.

Postdated checks for customers (cash or not cash)


Not Cash

7

The terms listed below refer to lessee and lessor accounting for operating, capital, direct financing, and sales-type leases.

For each phrase or description, select the best term from the list provided. An answer may be used once, more than once, or not at all.

1) Interest revenue is the only item reported on the income statement over the lease term.

Direct financing lease

8

The terms listed below refer to lessee and lessor accounting for operating, capital, direct financing, and sales-type leases.

For each phrase or description, select the best term from the list provided. An answer may be used once, more than once, or not at all.

1) Initial direct costs should be treated as an asset and amortized over the life of the lease on a straight-line basis.

Operating lease - lessor

9

The terms listed below refer to lessee and lessor accounting for operating, capital, direct financing, and sales-type leases.

For each phrase or description, select the best term from the list provided. An answer may be used once, more than once, or not at all.

1) Produces a desired rate of return which causes the aggregate present value of the minimum lease payments to be equal to the fair value of the leased property.

Implicit rate

10

The terms listed below refer to lessee and lessor accounting for operating, capital, direct financing, and sales-type leases.

For each phrase or description, select the best term from the list provided. An answer may be used once, more than once, or not at all.

1) Produces a constant periodic rate of return on the net investment.

Interest method

11

The terms listed below refer to lessee and lessor accounting for operating, capital, direct financing, and sales-type leases.

For each phrase or description, select the best term from the list provided. An answer may be used once, more than once, or not at all.

1) Should be recorded as both an asset and a liability by the lessee when the lease contains a bargain purchase option.

Present value of the minimum lease payments