FAR Y201-216 Flashcards Preview

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Flashcards in FAR Y201-216 Deck (16):
1

When is it appropriate for a NFP entity to record contributed services?

Svcs create/enhance nonfinancial assets, specialized skills, entity would have purchased

2

Name the 3 types of financial hedges.

Cash Flow Hedge, Fair Value Hedge, Foreign Currency Hedge

3

Define callable preferred stock.

Preferred stock that can be repurchased by the entity at a certain price

4

What are the minimum requirements to be considered and operating segment?

Revenues & exp's, chief decision maker must evaluate segment, financial info can be broken out

5

What is the difference between and ordinary annuity and an annuity due?

Ordinary (in arrears)- due at end of period, Annuity Due-due at beginning of period

6

Can a partner's profit percentage be different from the partner's loss percentage?

Yes, if the partnership agreements describes such an arrangement

7

Describe the LIFO conformity rule.

If LIFO is used for taxes, it must also be used for books

8

Define a business combination.

A transaction where an entity obtains control of another. Gen rule: >50% of voting stock

9

When is the current rate method used to translate foreign currency?

When the functional currency is deemed to be the foreign currency

10

What types of assests are depleted?

Natural resources

11

Liabilities assumed by a partnership are recorded by the partnership at what amount?

Present Value

12

What is the focus of the Governmental Funds

Current Financial Resources Focus-They don't record Fixed Assets or LT Debt on the Fund F/S

13

Name the only authoritative source of GAAP.

The Accounting Standards Codification (ASC)

14

Available-for-sale securities are carried at what amount on the Balance Sheet?

Fair Market Value

15

How is basic earning per share calculated?

(Net Income - CY Pref Stock Div) // CY WEIGHTED AVG CS outstanding

16

How is the receivable turnover ratio calculated?

Net CREDIT Sales // AVERAGE NET Receivables