Key Notes

Question 1

Order of Discounts

Answer 1

Trade discounts chained
then
Sales discounts

Question 2

Beginning Year operations (Inventory #)

Answer 2

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

Question 3

Accounts Receivable (4 Factors)

Answer 3

Trade discounts
Cash discounts
Sales Returns and Allowances
Uncollectible accounts

Question 4

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

Answer 4

NRV = Selling Price - Disposal cost

Question 5

Lower of Cost or Market (Lifo)

Answer 5

Ceiling is NRV = Selling Price - Disposal Cost

Replacement Cost

Floor = NRV - normal profit margin

Question 6

Five Steps of Revenue Recognition

Answer 6

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

Question 7

Capital Account

Answer 7

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

Question 8

Actual Return Plan Assets (Pension)

Answer 8

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

Question 9

Permanent Tax Differences

Answer 9

Municipal bond interest

Penalties and Related Interest

Question 10

Investing Activités (PAST CHILL)

Answer 10

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

Question 11

Operating Activities (SOCD ITT)

Answer 11

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

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

Question 12

Financing Activites (CDDL)

Answer 12

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

Question 13

Net Income Equation

Answer 13

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

Question 14

Cash To Accrual

Answer 14

SE = A - L

Question 15

Accrual To Cash

Answer 15

Cash = L + SE - OA

Question 16

Governmental Fund types

Answer 16

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

Question 17

4 Currency Hedges

Answer 17

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

Question 18

5 Statistical information categories GASB

Answer 18

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