Where is accumulated depreciation reported on the balance sheet?
Non-current asset
What does the current portion of LT debt consist of?
Principal payments to be paid within the next fiscal year
How do you calc COGS?
beginning inventory + purchases - ending inventory
Income tax payable (expense) and interest tax payable (expense) are reported where in f/s?
They payables are reported as current liabilities on balance sheet and the expense side is recorded in income statement under expenses
Where is inventory reported on the balance sheet?
Current asset
How is treasury stock reported in stockholders equity?
As a deduction of equity so as a negative #
If there was an error in calc depreciation expense that was corrected, how is this reported?
The equipment account less accumulated depreciation is increased if depreciation expense was overstated and retained earnings is
If a prepaid expense was improperly reported at full value, how is this adjusted?
Retained earnings is reduced and so is prepaid assets by the amount that has already expired/been used
How do you report board-designated net assets?
Disclose the amount that the board of trustees designated (board designated are without restriction)
How do you report a correction of depreciation error in the current year?
Gross as increase in accum deprec
How much of a subsidiary’s retained earnings should be reported in consolidated retained earnings?
None!
Will reversal of current temporary differences result in taxable or deductible amounts if a DTA was reported? Was there a profit or loss for tax purposes?
Deductible; profit
If a DTA was recorded and a loss was reported, what would have to be recorded?
Full valuation allowance and net DTA is 0 and NOLs will be in future periods with no income to offset with future tax deductions
How should a NFP report amounts paid for interest in statement of cash flows using indirect method?
Supplemental disclosure of cash flow info but for direct method it is an operating cash flow
For an asset HFS, does depreciation continue?
No - it stops completely; no depreciation or amortization expense while an asset is classified as HFS
Are property dividends deducted from retained earnings at market value?
Yes on date of declaration
Are goods shipped to customers FOB destination but are not expected to arrive until after year-end, added or deducted from ending inventory?
Added/included in ending inventory
When calculating SYD depreciation, what stays the same in the formula?
The depreciable base stays the same (cost less salvage) while the n/sum of years goes down each year (3/6, 2/6, etc.)
The objective of financial reporting (for-profit or NFP)/primary purpose of statement of activities is to provide relevant info to?
Primary users or resource providers in making decisions about resources to provide to the entity
How are stock splits or stock dividends treated?
They are treated as if it had happened at the beginning of the year so if it was a stock dividend issued, the amount of shares would be added to the beginning # of shares
What happens when an entity is acquired?
The subsidiary’s assets and liabilities are recorded on parent’s books at fair value and if there is a revaluation, consolidated balance is increased by the book to fair value
Should a parent company’s consolidated balance sheet report an investment with its own subsidiary?
No, the investment balance is deducted on the parent’s books
How to find goodwill on a parent company’s books when an entity is acquired?
Purchase price of subsidiary less [the net assets (assets less liabilities of subsidiary’s) + adjustments from book to fair value of subsidiary’s]
How to find the adj of PPE of parent and subsidiary?
The parent’s PPE balance + subsidiary’s less accumulated depreciation + increase in fair value of land if applicable
