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Flashcards in Key Notes Deck (18):
1

Order of Discounts

Trade discounts chained
then
Sales discounts

2

Beginning Year operations (Inventory #)

If company is in the first year of operations beginning inventory will be 0

3

Accounts Receivable (4 Factors)

Trade discounts
Cash discounts
Sales Returns and Allowances
Uncollectible accounts

4

Lower Of Cost Or Net Realizable Value (FIFO, WTD Avg)

NRV = Selling Price - Disposal cost

5

Lower of Cost or Market (Lifo)

Ceiling is NRV = Selling Price - Disposal Cost

Replacement Cost

Floor = NRV - normal profit margin

6

Five Steps of Revenue Recognition

1) Identify Contract with Customer
2) Identify Performance Obligations
3) Determine Transaction Price
4) Allocate transaction price to Performance obligations
5) Recognize Revenue when performance obligations are satisfied

7

Capital Account

Beginning purchase price
+ Investment
+ Income
- Drawings
-----------------
Ending Capital

8

Actual Return Plan Assets (Pension)

Ending Plan Assets
- Beginning plan Assets
+ Benefits
- Contributions
------------------------------
Actual Return Plan Assets

9

Permanent Tax Differences

Municipal bond interest
Penalties and Related Interest

10

Investing Activités (PAST CHILL)

PPE purchase sale
Acquiring bonds afs purchase and sales
Stocks bonds afs purchase and sales
Trading securities purchased

Component of business sold
Held to maturity bond sold
Loans to other entities
Loan principle

11

Operating Activities (SOCD ITT)

Supplies cash paid for suppliers
Operating expenses
Customers cash received
Dividends received

Interest paid
Interest received
Taxes paid
Trading securities purchases
Trading securities sold

12

Financing Activites (CDDL)

Common stock
Dividends paid
Debt short or long term proceeds
Loans principle

13

Net Income Equation

NI = (Assets - Liabilities) - Contributed Capital + Dividends

14

Cash To Accrual

SE = A - L

15

Accrual To Cash

Cash = L + SE - OA

16

Governmental Fund types

General Fund
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds

17

4 Currency Hedges

1) Unrecognized Firm Commitment
2) Available for sale securities
3) Forecasted transactions in foreign currency
4) Net Investments in Foreign Operations

18

5 Statistical information categories GASB

Financial trends information
Revenue capacity information
Debt Capacity information
Demographic and Economic information
Operating information