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26 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Journal entries :
1. to collect royalties - B/S only 2. to recognized earned royalties - I/S impact |
DR Cash
CR Unearned Royalties 2 DR Unearned Royalties CR Earned Royalties |
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ORGANIZATIONAL EXPENSES are ______________ as an intangible asset; they are_____________immediately.
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NOT CAPITALIZED
EXPENSED |
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When testing a fixed asset or and intangible asset with a FINITE LIFE for impairment
1. Determine the impairment - use __________ 2. Amount of impariment - use |
1. Undiscounted future net CF
2. fair value (FV) or discounted (PV) future CF |
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When testing a fixed asset or and intangible asset with a INDEFINITE LIFE for impairment perform __________ test. Amount of impairment =
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ONE-STEP
Carring Value - FAIR VALUE |
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The impairment loss is reported as a component of ___________
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INCOME STATEMENT FORM CONTNUING OPER.
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B/S presentation of DEFERRED GROSS PROFIT
DEFERRED GROSS PROFIT is _____________ |
A/R
less DEFERRED GROSS PROFIT ----------------------------------------------- balance is a CONTRA RECEIVABLE |
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You will be able to easily remember approximately 85% of the adjustments made to the operating activities section under the INDIRECT METHOD by remembering the mnemonic CLAD
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Current assets and liab.
Losses and Gains Amortization (BONDS) and Depreciation Deferred Items + CA↓ - CA ↑ - CL ↓ + CL ↑ + Losses/ - Gains + Amortization (BONDS) and Depr. |
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COGS =
given Sales and GMR |
GMR =
(SALES - COGS) / SALES = SALE/SALES - COGS/SALES =1- COGS/SALES => COGS = SALES X (1- GMR) |
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GMR=
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SALES - COGS
-------------------------- SALES |
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Dollar-value LIFO inventory =
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end of PY INVENTORY + CY layer x PRICE INDEX
PRICE INDEX = INVENTORY @ CY COST / INVENTORY @ PY COST |
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IF Replacement cost is < Market ceiling but > Market floor =>
to calculate End Inventory? |
EI = # units x REPLACEMENT COSTS
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ROA - return on assets=
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NET INCOME/ AVG ASSETS
AVG ASSETS = .5 X (BEGINIG ASSETS+ ENDING ASSETS) |
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DEFERRED GROSS PROFIT =
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DEFFERRED REVENUE ( instalment receivables) X GP rate
GP rate= (sale - COGS) / sale |
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SALES before sales Tax =
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sales revenue / (1 + tax rate)
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BOND DISCOUNT represents _____________ at the bond maturity and is amortized over the life of the bond; amortized amounts ___________ interest EXPENSE each period
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ADDITIONAL INTEREST TO BE PAID TO INVESTORS
INCREASE |
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BOND PREMIUM represents _____________ who then receive a return of this primium in the form of larger periodic payments; amortized amounts ___________ interest EXPENSE each period
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INTEREST PAID IN ADVANCE TO THE ISSUER BY BONDHOLDERS
DECREASE |
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CARRYING VALUE OF THE BOND =
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FACE
+ UNAMORTIZED PRIMIUM - UNAMORTIZED DISCOUNT OR CV + DISCOUNT AMORTIZATION FOR THE PERIOD - PRIMIUM AMORTIZATION FOR THE PERIOD |
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EFFECTIVE INTEREST METHOD
for the amortization of DISCOUNTS/PREMIUMS is required by GAAP INTEREST EXPENSE = INTEREST PAID = DIFFERENCE ? |
(I/S impact) INTEREST EXPENSE = NET CARRYING VALUE X Effective Interest Rate
(B/S impact) INTEREST PAID = BOND FACE X STATED RATE DIFFERENCE = INTEREST EXPENSE less INTEREST PAID |
PASS KEY
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Gain/loss due to EXTINGUISHMENT OF DEBT =?
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Pass key
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% of completion method:
4 steps |
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PARTNERSIP
Exact method Bonus method Goodwill method |
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Book value per C/S=
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Common shareholders' Equity
______________________________ Common shares outstanding |
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Common shareholders' Equity=
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Total S/Holders Eq (Assets -Liab)
- Preferred stocks outst. ( at greater call or par) - Cumullative preferred divid in Arrears _________________________ Common shareholders' Equity Book value per C/S= Common shareholders' Equity/ Common shares outstanding |
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Accounting for Treasury Stock - COST METHOD
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Treasury Stock PAR METHOD
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SUBSCRIPTION OF STOCK is recorded as
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Contra Equity,
No Total Equity Change |
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