NINJA 2

Question 0

NP balance

Answer 0

Balance
(Pmt)
+ interest

Question 1

Goodwill impairment

Answer 1

1. y.e FV
   CV incl GW - if greater:
2. Implied FV GW
   CV GW
   if CV > FV, recog loss

Question 2

Interest pmt

Interest exp

Answer 2

Pmt = par * SR

Exp = CV * mkt

Question 3

GP %

Answer 3

(Sales - COGS)/sales

Question 4

Deferred GP

Answer 4

X1 sales - GP% * y.e. Receivables

+ X2 sales - GP% * y.e. Receivables

Question 5

Troubled debt restructuring

Answer 5

g/l =

FV transferred
CV transferred

Question 6

Cash to accrual

Answer 6

Cash collected X2
(End X1 receivables)
-------------------
Fees collected X2
\+ end X2 receivables
-------------------
Subtotal 
(End X2 unearned fee rev)

Question 7

Completed contract g/l

Answer 7

Costs incurred 
\+ est cost to complete 
----------------
Total cost
(Contract price)
----------
Est p/l
     Recog loss immediately
     Recog profit when completed

Question 8

Account for dividend

• cost method
• equity method

Answer 8

• cost = revenue

- equity = return of invest

Question 9

Funded status of pension assets

Answer 9

Reported on Statement of Fin Pos (BS)

Don’t net A & L between plans

Over = PBO < FV
Under = PBO > FV

Question 10

FV plan assets

Answer 10

Beginning
+ employer contrib
(Benefits pd)
+ actual return on plan assets

Question 11

Attribution pd for pension

Answer 11

Begins @ hire

Ends @ full eligibility date

Question 12

How to calculate expense for varying service periods

Answer 12

A = 3
B = 5
C = 5
D = 7

Yr 1 = 4/20

Question 13

Pension exp

Answer 13

Service cost
\+ int cost
\+ am prior service cost
\+ exp return on plan assets
\+/- unrecognized g/l