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Details

Far2 Exam 1
Morton FSU
22
Accounting
Undergraduate 4
05/20/2010

Additional Accounting Flashcards

 


 

Cards

Term
How do revenues lead to FDA's?
Definition
Taxable income recognizes the revenue before accounting income does
Term
Which revenues result in deferred tax assets?
Definition

1) Advanced Rent

2) Subcriptions

3) Early Revenues

 

Term
How do revenues lead to FTA's?
Definition
Accounting income recognizes the revenue before taxable income
Term
Which revenues result in deferred tax liabilities?
Definition

1) Installment Sales

2) Unrealized Gains

Term
How do expenses lead to a FDA's?
Definition

Accounting income recognizes expense earlier than taxable income

 

Term
Which expenses result in deferred tax assets?
Definition

1) Estimated Expenses

2) Unrealized Losses

Term
How do expense's lead to FTA's?
Definition
Taxable income recognizes the expense before taxable income does
Term
Which expenses result in deferred tax liabilities?
Definition

1) Accelerated depreciation

2) Prepaid Expenses

Term
How is net income calculated?
Definition

Rev

(Exp)

Income Before Taxes

(Income Tax Expense)

Net Income

Term
How is taxable income calculated?
Definition

Rev

(Expenses) Deductions

Taxable Income

x Tax Rate

Income Tax Payable

Term
What does SFAS#109 state?
Definition
Current tax obligations are reported as current liabilities
Term
What's FIN 48? (Uncertainty of IT)
Definition

Before recognizing tax benefits:

 

1) Assess validity of claim

2) Assess dollar amount

Term
How does IFRS report DTA's and DTL's?
Definition
All as non-current
Term
How do you price a bond?
Definition

FV * Stated Rate = Cash Payment

 

(FV*PV-SS)+(CP*PV-OA)

Term
How do we handle bond issuing costs?
Definition

Asset Account = Deferred Charge

 

Bond Issue Exp XX

Deferred Charge      XX

Term
What type of accounts are discounts?
Definition

Issuer: Contra Liability

 

Investor: Contra Asset

Term
What type of accounts are premiums?
Definition

Issuer: Adjunct liability

 

Investor: Asset Account 

Term
What's the journal entry for early retirement of debt?
Definition

Bond Payable X

Premium X

Cash X

Bond Issue Costs X

Gain? X

Term
Whats the journal entry for the convergence of convertible bonds?
Definition

B/P Face Value

Disc From Amort Table

C/S Shares * Par Value

PIC Plug Figure

Term
Whats the journal entry for issuance of bonds with detachable warrants?
Definition

Cash Bond Price

Bond Payable Face Value

PIC $ Value of warrents

Premium Price - Warrent Value

Term
How does GAAP and IFRS differ on preferred stock?
Definition

GAAP - Equity

 

IFRS - Debt

Term
How do GAAP and IFRS differ on Convertible bonds?
Definition

GAAP - Debt

 

IFRS - Debt & Equity 

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