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Flashcards in Financial Statements Deck (15):
1

Statement of Financial Condition & Statement of Changes in Net Worth

Personal Financial Statements

2

Estimated current value

Personal Financial Statements

3

Presented on Statement of Financial Condition between Liabilities and Net Worth

Personal Financial Statements

4

Assets
- Liabilities
- Estimated taxes on assets sold
: Net Worth

Personal Financial Statements

5

Only shown if there is cash surrender value

It is shown net of loans against the policy

Personal Financial Statements

6

Business Interests that constitute a large percentage of total assets should be separated from other investments

Personal Financial Statements

7

Interim period is a separate accounting period - not GAAP

Same accounting principles used for annual reporting should be used.

Personal Financial Statements

8

Interim period is a part of the annual period - GAAP

Gross profit method may be used to estimate COGS and inventory

Temporary declines in inventory aren't recognized

Interim Financial Statements

9

Aren't prorated

Fully recognized in Interim Period as incurred

If it occurs in Q3 - it's recognized in Q3

Interim Financial Statements

10

Reported as if they occurred in the first quarter

Interim Financial Statements

11

If inventory experiences a decline in value during an interim period - the loss is recognized in the interim period

If the loss is expected to be only temporary - no loss is recognized

Interim Financial Statements

12

The matching principle gets messed up - Expenses incurred in one period may benefit future periods

Interim Financial Statements

13

Publicly traded companies

Segment Reporting

14

Revenue of segment is 10% or more of total

Profit is 10% or more of total

Segment assets are 10% or more of total

75% Test - All segment revenues must equal 75% of total external revenues

Segment Reporting

15

If 10% or more of enterprise revenue comes from one customer - the segment making the sales must be disclosed

Segment Reporting