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19 Cards in this Set
- Front
- Back
- 3rd side (hint)
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_____________ CONCEPT - The effect of price change on assets held and liabilities owed are recognized as "holding G/L" and included in return ON capital.
The concept is applied to What income? |
FINANCIAL CAPITAL CONCEPT
NET INCOME AND COMPEHENSIVE INCOME |
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FINANCING ACTIVITEIS are associated with a company's __________ and ______________
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LIABILITIES AND SOCKHOLDER'S EQUITY
- cash effects of transactions obtaining resources from Owners and providing them with a return on Their investment |
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If LAND was held for resale and was indeed sold BEFORE issuance of the F/S, the land should be classified as ____________
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CURRENT ASSET
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In concept, REVENUES - increase assets rather than decrease liabilities, but a convinient shortcut is often to directly record _____________
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reduction of liabilities
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Calculate EQUITY if given
capital stocks revenue expenses cash dividends declared |
revenue
- expenses ______________ NI - cash dividends declared + capital stocks _________________________ EQUITY |
ch1
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Articulation means that the elements of F/S are _____________
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FUNDAMENTALLY INTERRELATED
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Conversion of Debt to Equity should be disclosed as ___________ in the SCF.
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SUPPLEMENTAL INFO
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F/S should not report an amount of cash flow _____________
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PER SHARE
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Calculate Cash proceeds of insurance settlement, given Extraordinary loss, Cost of the asset and Accumulated depreciation.
This amout is reported on SCF as ___________ |
Cost of the asset
- Accum. depr. - Loss ________________ Cash from "sale" INCREASE IN CF |
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The recognition of the realized Loss due to other than temporary change in value of ___________ security would result in a ________________ and no effect on NET NONCURRENT ASSETS
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AVALABLE-FOR-SALE
DECREASE IN NET INCOME |
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Constant Dollar Index =
Constant Dollars are dollars of equal Purchasing power |
Historic cost to be restated x
C/Y index / Base year index |
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Culculate the R/E for the year =
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Revenues
- expenses - income tax ------------------------ NI - Dividends (cash) ________________ R/E for the C/Y |
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The cost of company acquired in a Business Combination includes the _________ costs of the Business Combination. These costs will be included in the total _______ cost which will be allocated to identifiable assets.
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DIRECT
ACQUISITION |
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What type of the account is Costs in excess of billings on long-term contracts?
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Current asset
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What type of the account is Billings in excess of costs on long-term contracts?
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Liability acct.
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Available-for-Sale Sec.
2000 FMV of the stock is $1000 2001 FMV of the stock is $800 - decline in value is temporary 2002 FMV of the stock is $800 - decline in value is OTHER than temporary What should be the effect on NONCURRENT ASSETS and NET INCOME in 2002? |
NONCURRENT ASSETS -NO EFFECT. -- carring value would have to be lowered for 2001 using Valuation Allowance
NET INCOME - will DECREASE in 2002 |
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The total of Other Comprehensive income for a period must be transferred to a separate component of Equity Account _______________ in the B/S at the end for the accounting period.
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ACCUMULATED OTHER COMPREHENSIVE INCOME
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A single-step income statement example
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Sample Products Co.
Income Statement For the Five Months Ended May 31, 2009 Revenues & Gains Sales Revenues $100,000 Interest Revenues 5,000 Gain on Sale of Assets 3,000 Total Revenue & Gains 108,000 Expenses & Losses Cost of Goods Sold 75,000 Commissions Expense 5,000 Office Supplies Expense 3,500 Office Equipment Expense 2,500 Advertising Expense 2,000 Interest Expense 500 Loss from Lawsuit 1,500 Total Expenses & Losses 90,000 Net Income $ 18,000 |
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A single-step income statement
formula = |
Net Income = (Revenues + Gains) – (Expenses + Losses)
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