Far Ch 1D Accounting Policies/notes To Fs

Front 1

Purchasing power G/L only result from holding_________ assets/liabilities.
During inflation , prices ___ resulting in a purchasing power __________

Back 1

MONETARY
INCREASE
LOSS

Front 2

The info about the effect of changing prices would be _____________ info to the FS

Back 2

SUPPLEMENTARY

Front 3

SFAS 89 defines the inflation component of the increase in current cost amount as the difference between the ________ dollar and _________ dollar measures.
inflation component =

Back 3

NOMINAL AND CONSTANT

increase in NOMINAL $
LESS increase in CONSTANT $
---------------------------------------------
= inflation component

Front 4

A summary __________ should be the first disclosure in the notes to the FS.
Examples
basis of consolidation
depreciation methods
amortization of intangible
inventory pricing
accounting for research and development costs
translation of foreign currencies
recognition of profits on long-term construction-type contracts.

Back 4

of significant accounting policies

Front 5

In the period of rising general price levels, wages payable would result in a purchasing power ___________
refundable deposits with suppliers would result in purchasing power _________.

Back 5

GAIN
LOSS

Front 6

________ security - reported in the net income of the current period and accumulated in a valuation allowance
________ security - reported as a separate (negative) component of S/Equity and accumulated in a valuation allowance, which may be debit or credit balance

Back 6

TRADING
AVAILABLE FOR SALE

Front 7

SFAS 89 describes current cost/constant dollar accounting as method of accounting based on measures of current cost or lower recoverable amounts in units of currency, each of which has the same general purchasing power. These statements include adjustments for both specific _________ change and general _________ change.

Back 7

PRICE
PRICE-LEVEL

Front 8

COGS on a __________ BASIS may be computed by:
multiplying the number of ___________
by the average _________of units during the year

Back 8

CURRENT
number of units sold
x
average current cost of units during the year
------------------------------------------
COGS on a CURRENT BASIS

Front 9

When _________ indexes are used to adjust major expense items (depr. COGS) the result is restated amounts that approximate ____________ COSTS for those items.

Back 9

SPECIFIC
CURRENT

Front 10

Info which becomes known after the B/S date, but before the F/S are issued, should be _________

Back 10

DISCLOSED

Front 11

__________ CONTINGENCIES should NOT be reflected in the accounts (accrued) but the adequate __________ should be made in Notes to the F/S

_________ CONTINGENCY would be accrued.

Back 11

GAIN
DISCLOSURE
LOSS

Front 12

__________ is the process of formally recording or incormporating an item into the FS of an entity as an asset, liability, revenue, expense, or the like

Back 12

RECOGNITION

Front 13

__________CONCEPT the effects of price change on assets held and liabilities owed are recognized as "holding G/L" and included in return on capital

Back 13

FINANCIAL CAPITAL

Front 14

the Board issues a Statement or Interpretation by simple _________ vote.

Back 14

MAJORITY