QQ Not yets Flashcards
(45 cards)
A company is planning to sell a parcel of land that has been divided into several smaller lots. In order to determine the fair value of the land, which of the following unit of account assumptions should be considered?
Valuing each individual lot separately
The unit of account assumption refers to how an asset should be grouped or disaggregated for valuation purposes. In this scenario, the company is selling a parcel of land divided into smaller lots, so the appropriate unit of account would be valuing each individual lot separately.
In governmental fund financial statements, how are capital assets typically reported?
Not reported in the fund financial statements
How to calculate net cash flow after taxes?
Earnings before taxes
Subtract tax expense
Add back depreciation expense
Which of the following best describes the role of the COSO ERM framework in managing environmental, social, and governance (ESG) related risks?
The framework provides a systematic approach to identifying, responding to, and reporting ESG risks
What is the primary objective of benchmarking?
To identify best practices
What is the formula for the debt service coverage ratio?
Operating income/total debt service
debt service is principal and interest payments
What disclosure related to pension plan contributions is typically included in the notes to the financial statements of a defined benefit pension plan?
The contributions made by the employer and employees separately.
Which of the following non-GAAP measures represents a company’s profit from core business operations, excluding non-operating income and non-recurring items?
Operating earnings
What does the requirement for a derivative to be “net settled” imply?
The derivative must be settled in cash or another financial asset
estimating growth rates for individual products or business segments and aggregating these estimates to determine the company’s overall revenue growth
bottom-up approach
most suitable for companies that produce a large number of unique, custom products, as it assigns costs to individual jobs or projects based on the specific costs incurred for each job.
job order costing
Under IFRS, how are segment liabilities treated in segment reporting?
Reporting segment liabilities is optional and at the discretion of management.
What is the treatment of the ineffective portion of gains and losses in a hedging relationship?
Recognized in the income statement.
to guarantee a minimum and maximum exchange rate for a future transaction
purpose of a currency collar
reflect the perspective of hypothetical buyers and sellers in the market.
market participant assumptions
is a measure of a company’s operating performance that excludes the effects of financing (interest) and tax. It helps assess a company’s ability to generate income from its operations, independent of its capital structure and tax situation.
EBIT (Earnings Before Interest and Taxes)
________ __________including those between an Enterprise Fund and a General Fund, are eliminated in the preparation of government-wide financial statements because they represent internal movements of resources and do not affect the overall net position of the government.
interfund transfer
a key metric used in cost-benefit analysis to compare the relative value of different project alternatives by taking into account the time value of money.
Net present Value
a non-GAAP measure that helps assess the value generated from an entity’s customer base by calculating the average amount of revenue generated per user over a specific period.
Average revenue per user (ARPU)
What are the eight components of the COSO ERM framework?
Internal Environment
Objective Setting
Event Identification
Risk Assessment
Risk Response
Control Activities
Information and Communication
Monitoring
tokenization, stemming, and stop-word removal, are used to convert unstructured text data into a structured format.
natural language processing (NLP)
Agency funds typically exhibit a _______ net position because they reflect custodial activities (assets equal liabilities). The agency fund collects and disburses funds on behalf of others, and any balance is owed to other entities.
zero
measures the increase in a company’s sales, excluding the impact of acquisitions, divestitures, and currency fluctuations. This metric helps assess a company’s ability to grow its core business operations.
organic revenue growth
a natural language processing technique used to convert unstructured text data into a structured format. It is not used for filling in missing values.
tokenization