F1 M1 - FAR
Gross = revenues and
Gross concept verses net
concept expenses Net = gains
and losses
Would a fixed asset sold for Net method, NOT net of income tax
more than its carrying amount
use the gross or net method?
Net of income tax?
Revenues: do purchase Revenues are sales of goods or services; purchase discounts
discounts and allowances and allowances do not count
count?
Comprehensive income excludes Dividends and owner investments
___________ and ______________
_________________
Under U.S GAAP, a gain that is Income from continuing operations
reported as unusual and
infrequent should be reported
as...
Would an adjustment of a No
company's prior year
amortization expense impact
current year net income?
Retained earnings and The undistributed earnings of a corp
accumulated OCI sum up...
True or false: translation False, translation losses from foreign currency transactions go to OCI
losses go to retained
earnings
Transaction gains and losses go Income statement; OCI
to
______, whereas translation gains
and
losses go to __________
, Unrealized gains on equity The income statement
securities are recognized
immediately where?
What would you do with a gain Gets recognized on income statement pre tax
on extinguishment of debt?
True or false: Retained earnings is True
net of tax
Which two items on the Retained earnings and PPE
balance sheet does an error in
depreciation affect?
When interest rates go down, Increases; then record an unrealized gain
the FMV of a bond ___________
When a debt investment is OCI (other comprehensive income)
recorded as available for sale,
is it recorded in net income or
OCI?
Discontinued ops are ALWAYS TAX
net of ______
General expenses that support the overall functioning of the
business but are not directly related to producing or
selling the goods; examples include
- Salaries
Administrative expenses
- Accounting/legal fees
-Depreciation related to admin
- Insurance/utilities expenses
-Rent
-Office supplies
Where would a debt On the income statement directly affecting net income and
investment classified as a retained earnings; because it is actively being purchased
trading security be and sold
recorded?
Where would a debt A held to maturity debt investment is not recorded until realized or
investment classified as held impaired
to maturity be recorded?
If a company is paid in their No, because they are paid in their own currency, the amount
own currency for a foreign they receive is set and the exchange rate does not
currency transaction, do they matter
have to record a transaction
gain or loss when the
exchange rate changes?
Retained earnings is to net Accumulated OCI
income as other comprehensive
income is to ___________
Gross = revenues and
Gross concept verses net
concept expenses Net = gains
and losses
Would a fixed asset sold for Net method, NOT net of income tax
more than its carrying amount
use the gross or net method?
Net of income tax?
Revenues: do purchase Revenues are sales of goods or services; purchase discounts
discounts and allowances and allowances do not count
count?
Comprehensive income excludes Dividends and owner investments
___________ and ______________
_________________
Under U.S GAAP, a gain that is Income from continuing operations
reported as unusual and
infrequent should be reported
as...
Would an adjustment of a No
company's prior year
amortization expense impact
current year net income?
Retained earnings and The undistributed earnings of a corp
accumulated OCI sum up...
True or false: translation False, translation losses from foreign currency transactions go to OCI
losses go to retained
earnings
Transaction gains and losses go Income statement; OCI
to
______, whereas translation gains
and
losses go to __________
, Unrealized gains on equity The income statement
securities are recognized
immediately where?
What would you do with a gain Gets recognized on income statement pre tax
on extinguishment of debt?
True or false: Retained earnings is True
net of tax
Which two items on the Retained earnings and PPE
balance sheet does an error in
depreciation affect?
When interest rates go down, Increases; then record an unrealized gain
the FMV of a bond ___________
When a debt investment is OCI (other comprehensive income)
recorded as available for sale,
is it recorded in net income or
OCI?
Discontinued ops are ALWAYS TAX
net of ______
General expenses that support the overall functioning of the
business but are not directly related to producing or
selling the goods; examples include
- Salaries
Administrative expenses
- Accounting/legal fees
-Depreciation related to admin
- Insurance/utilities expenses
-Rent
-Office supplies
Where would a debt On the income statement directly affecting net income and
investment classified as a retained earnings; because it is actively being purchased
trading security be and sold
recorded?
Where would a debt A held to maturity debt investment is not recorded until realized or
investment classified as held impaired
to maturity be recorded?
If a company is paid in their No, because they are paid in their own currency, the amount
own currency for a foreign they receive is set and the exchange rate does not
currency transaction, do they matter
have to record a transaction
gain or loss when the
exchange rate changes?
Retained earnings is to net Accumulated OCI
income as other comprehensive
income is to ___________
