formula sheet mini test

8/8/2019 Formula Sheet Mini Test

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FAR Formula Sheethttp://cpacfa.blogspot.com

Chapter 1

Statements of Financial Accounting Concepts (SFAC) -

What are the Four most authoritative GAAP

What are the characteristics of accounting information

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1a.

2a.

What components are on the income statement?

What component is on the statement of retained earnings?

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Cumulative effect of change in accounting principleAccounting changes are broadly classified into 3 categories:

Examples

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Examples

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Examples

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Define comprehensive income and its components -

Public companies must report segment information about

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Must report as operating segment if its greater than _______ of either:

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2.

3.

= Operating profit (loss) for segment

Chapter 2

What is the patent amortization length?

Define technological feasibility

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How does that affect costs for Computer software development costs, developed to be sold, leased or licensed?

How do you capitalize the software costs:

How does that differ from Computer software developed internally or obtained for internal use only?

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Are the capitalized costs amortized?

= ending bal prepaid insurance

= end bal rent receivable

= end bal accrued salaries payable

Sales revenue =

Completed contract method

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Percentage of completion method, When do you use this method?

How is income recognized under % completion method?

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When is the installment method used? And how is revenue recognized

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Gross profit earned =

Gross profit % =

Gross profit =

Deferred gross profit =B/S A/R =

Define an exchange that has commercial substance

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Record the J/E for exchanges with commercial substance

Exchanges lacking commercial substance or when __________________________

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When do you use the exact method in P/S?

New total P/S equity =

New partner contribution amount =

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When do you use the bonus method for P/S?

Book value =

Bonus =

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When do you use the goodwill method for P/S?

Implied value =

Goodwill =

Then allocate

In periods of inflation

FX transactions

FX translation

Functional currency

Remeasurement ( )

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Translation ( )

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Remeasurement method: _____________________________B/S

Monetary =

Non-monetary =

I/S

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Non B/S related items (COGS) -

B/S related items (Depreciation, Bond Amortization) =

Equity =

Currency gain/loss =

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Translation method ( ): ____________________________I/S

Income =

Expenses =

B/S

Assets =

Liabilities =

Equity =

Retained earnings =

Accumulated Translation adjustment =

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Chapter 3

Trading Securities

Unrealized gain/losses -

Available for sale

Unrealized gain/losses -

Held to Maturity Securities -

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Reclassification; transfer of security from one group to another From To Adjustment

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What happens when you sell of security from any category? What is the J/E?

Cost method ( )

Equity Method ( )

Consolidate ( ) -

What another name for the cost method -

What are the B/S JEs under the cost method?

What are the I/S J/Es under the cost method?

Equity Method -

What are the main B/S entriess under the equity method?

What are the I/S J/Es under the equity method?

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Record as good will if -

Record as extraordinary gain if

Eliminate Subs old equity

What are the consolidating workpaper eliminating journal entrys ___________________

Determining purchased goodwill or extraordinary gain formula

________________________=

__________________________________=

What do you do when inventory has been sold intercompany?

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Chapter 4

Working capital =

Current ratio =

Quick ratio (acid test ratio) =

2/10 n/30 = get discount of 2% if paid within 10 days, or the entire amount is due in 30 daysMake JE under Gross method =

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Make JE under Net method =

Factoring without recourse JE

Factoring with recourse

Adjusted cash balance =

F.O.B. shipping point

F.O.B. destination

Market ceiling Market floor

In a period of inflation, how will the inventory method affect NI?

How do you calculate FIFO method -

How do you calculate LIFO method -

How do you calculate Dollar value LIFO?

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LIFO periodic =

How do you calculate weighted Avg method =

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Moving Avg method

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When can you use Gross Profit method and how do you calculate it?

Conventional Retail method

FIFO Retail method

How do you calculate interest capitalization? What are the 2 rules?

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2.

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What is Sum of years digit and how do you calculate it?

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Explain Double declining balance, how do you calculate it?

What is Units of production and how do you calculate it?

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What is Depletion and how do you calculate it?

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= end accum dep

Chapter 5

Ordinary Annuity

Annuity Due

On the present value table: Ordinary annuity =

On the PV table: Annuity due =

Present value of $1

Present value of an Ordinary annuity

Lessee accounting for operating leases the renter

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Lease bonus

What is a Leasehold improvement and how do you account for it

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How does lessee account for:Non-refundable security deposit

Refundable security deposit

Lessor accounting the owner

How does the lessor account for:

Non-refundable security

Refundable security

Capital Lease purchase/ownershipWhat is the Lessee capital lease criteria

What is the difference between a sales type lease and direct financing lease

What is the Lessor (seller) criteria for sales type/direct financing -

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The lessee records the capitalized lease amount at the ______________ of:

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For the interest rate use the ______________ of:

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What are the depreciation rules for the capitalized lease on the lessees books?

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What is the layout to account for lessees lease liability and asset amortization? (F5-17)

(1) (2) (3) (4)

Lessor accounting sales type lease (_____ profit streams)

Gross investment =

PV of minimum lease payments =

Net investment =

Unearned interest revenue =

COGS =

What is the associated JE?

Lessor accounting direct financing lease (_______ profit streams)

Gross investment =

Net investment =

Unearned interest revenue =

What is the associated JE?14


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Calculate excess gains for Sale-leaseback leases under operating and capital leasesOperating Lease

= Excess Gain

Capital Lease

= Excess Gain

Define each and when you recognize the gain

"major" sale-leasebacks

"minor" sale-leasebacks

In betweener sale leasebacks -

Real Economic loss in sales back lease -

Artificial loss in sales back lease -

How do you classify a sub lease -

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Stated (nominal) rate =

Discount =

Premium =

Total interest revenue =

Nondetachable warrants

Detachable warrants

2 methods to bond amortization methods: _____________________ and _____________________________

Define ________________:

Periodic amortization =

Interest expense =

___________________________ required by GAAP

I/S

Interest expense =

B/S

Interest paid =

Amortization =

Unamortized discount=

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Bonds book value =

Draw Graph Pg F5-47

How do you account for bonds sold or issued between interest dates requires additional entries for accruedinterest at time of sale?Total cash received =

Accrued interest =

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Bond sinking fund -

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Serial bonds

2 amortization methods:

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Convertible bonds nondetachable warrantsThe conversion is recorded under 2 methods:Book value method

Market Value Method

Convertible bonds detachable warrantsWhat is the JE at issue date?

Recorded under 2 methods:

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How do you calculate and account for Extinguishment of debt

Gain or loss =

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Give examples of troubled debt restructuring and how you calculate the gain/loss

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Ordinary gain/loss =

Possible extraordinary gain/loss =

= End interest payable

Chapter 6

Define and when they are used

Accumulated benefit obligation (ABO)

Projected benefit obligation (PBO) -

Prior Service Cost (PSC) -

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What is the I/S expense formula and the resulting JEs

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Unfunded accrued pension cost =

Prepaid pension cost =

On the B/S, what creates an intangible pension asset?

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How much is recorded as additional pension liability and other comprehensive income?

Total payroll tax liability =

Payroll tax expense =

DTA =

DTL =

Tax chart (F6-32)

Chapter 7

Reporting gains and losses: Define the term and where its reported

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Speculative derivatives

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Fair value hedge

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Cash flow hedge

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Foreign operation currency hedge

How do you account for Treasury Stock under the Cost method used 95% of the time

Repurchase

Re-sell at gain

Re-sell at a loss and there is not enough is APIC to cover the loss

How do you account for Treasury Stock under the Legal or par value method -

Repurchase at a gain

Repurchase at a loss

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How do you account for Property dividends

How do you account for stock dividends

- Small stock dividend -

- Large stock dividend -

Basic EPS =

Weighted avg # of C/S outstanding =

Diluted EPS =

For options and other similar instruments -

Additional shares outstanding =

Direct method required disclosures are-

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Indirect method

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Cash received from customers =

= ending balance A/R

Cash paid to suppliers

= Ending inventory

= end A/P

When given changes in accounts

Purchases =

Cash paid =

Accrual basis interest expense =

Direct methodInflows (increase cash)

Outflows (decrease cash)

Indirect method reconciliation

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= cash flow from operations

Chapter 8

Governmental Funds

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Governmental fund types include

Proprietary Funds

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Proprietary fund types include

Fiduciary Funds

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Fiduciary fund types include

Chapter 9

What are the required elements in government wide F/S

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What comprises the statement of net assets in the govt wide F/S

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What are the 3 categories in the statement of activities in the govt wide F/S)

What are the 3 program revenue categories?

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Fund Financial Statements (F9-19)What are the criteria to be considered a major fund? must meet both criteria:

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How do you prepare the reconciliation between govt wide and fund F/S?B/S

Statement of revenues, expenditures and changes in fund balance

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Discuss the statement of cash flows differences under governmental accounting. 6 differences:

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What are the required F/S for not-for-profits?

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formula sheet mini test

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