acct exam 2
what account can either go in selling expense or g&a expense
depreciation
what needs to be recorded net of taxes on an income statement
discontinued operations
tax expense can be part of...
discontinued or continued operations
deficit is part of _____
earned capital
what is the last item on the income statement
eps
using up an asset or incurring liabilities from delivering or product
expense
what is not part of ongoing operations
expenses
short term investments or available for sale securities are measured at ____ value
fair
an exit value or what you can sell for
fair value
what is the best measure of fair value
find identical asset
what makes up net sales revenue
gross sales revenue-sales returns and allowances-discounts
what is the purpose of the balance sheet
helps investors, creditors have information about risk, liquidity, and financial information
price you paid for something
historical cost
short term prepaids are measured at ____ value
historical cost
on a single step i/s, revenues and expenses add up to...
income from continuing operations
what is a performance based statement
income statement
what looks towards past income and past performance as an indicator of future performance
income statement
what shows the results of companies operations
income statement
what are 3 items shown net of tax
income tax expense discontinued ops prior period adjustments
what are four exceptions that bypass the income statement
pensions foreign currency derivatives gains/losses on afs securities
cash is measured at ____ value
present
discount in bond payable are measured at ____ value
present
held to maturity securities are measured at ____ value
present
short term notes receivable are measured at ____ value
present
accrued pension costs are measured at ____ value and is classified as a...
present current liability
long term liabilities are valued at...
present value
what something costs for you to replace it or an entry value
replacement cost
what are the key factors of a liability
1. arise from a present obligation 2. arise from a past transaction that gives rise to the liability
what are the levels of fair value
1. find identical asset 2. find similar asset 3. make something up
what are the 5 steps of revenue recognition
1. identify contracts 2. identify performance obligations 3. determine transaction price 4. allocate price to performance obligations 5. recognize when entity satisfies performance obligations
what are the key factors of an asset
1. provide future benefit 2. have to have control over 3. from a past transaction
net income+other comprehensive income=
comprehensive income
APIC is part of
contributed capital
patents are measured at____
cost
unearned rent paid in 6 months measured at ____ value
cost
advances to sales personnel is a ____
current asset
allowance for doubtful accounts are _____
current asset
cash equivalents are _____
current asset
certain gains/losses on derivatives are _____
AOCI
certain pension liability adjustments are _____
AOCI
foreign currency translation adjustments are _____
AOCI
unrealized decrease in fair value for available for sale securities
AOCI
unrealized gains/losses are _____
AOCI
accounts receivable are measured at ____ value
NRV
net income is the ____ basis of accounting
accrual
expense recognition is similar to...
accural accounting
what goes on the statement of shareholders equity
anything that causes equity to change
probable economic benefits obtained by a company as a result of a past transaction
asset
anything that causes equity to change except investments by owners and distributions to owners
comprehensive income
what does a shareholder's equity statement begin with
balance at the beginning of the year
what makes up COGS
beg inv +purch +freight in = cost of purch - purchase returns =COGAFS -end inv
shows a measure of wealth at the beginning and the end, the components that caused the changes
capital maintenance concept
operating cash flow is the ___ basis of accounting
cash
what are the main types of accounting changes
change in accounting principle change in accounting estimate
what kind of accounts are directly affected by inventory
cogs
what are the components of shareholder's equity
common stock APIC retained earnings AOCI
the change of equity during a period from any event except those relating to owners
comprehensive
what is considered other items on the income statement
interest income dividend income loss of equipment interest expense
what account is on both the income statement and the balance sheet
inventory
when you see the word interest, that means it is a ____ activity
investing
probable economic benefits from a present obligation to transfer goods or services
liability
cash surrender value of life insurance policy is _____
long term investment
sinking fund is _____
long term investment
long term advances are _____
long term investments
deferred tax liabilities are
long term payables
pension and post employment employee benefits are _____
long term payables
how do we measure equity
mixed attribute measurement
short term receivables are measured at ____ value
net realizable
amount of money you think youre going to collect
net realizable value
arises when a parent company owns a majority of the common shares of another company but does not own 100% of the shares
non controlling interests
represents the amount of equity capital attributable to the minority investors
non controlling interests
assets of a discontinued component are _____
other assets
bond issue costs are _____
other assets
deferred tax assets are _____
other assets
long term prepayments are _____
other assets
dividends affects _____
retained earnings
net income closes to ___ so it affects ____
retained earnings
increases in assets or settlements of liabilities part of ongoing operations
revenue
what are the 3 tests for a reportable segment
revenue profit asset
available for sale securities are _____
short term investments
unearned rent is _____
short term payable
deferred and unearned revenues are
short term payables
takes beginning and ending balance of cash and adds/subtracts operating, investing, and financing activities
statement of cash flows
what is another name for the balance sheet
statement of financial position
reconciles beginning and ending balances of shareholder's equity
statement of shareholder's equity
for depreciation, it is recognized as an expense through...
systematic and rational allocation
