Term
| What items comprise other comprehensive income (OCI)? |
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Definition
a. Unrealized gain/loss on available for sale security
b. Certain foreign currency translation adjustments
c. Minimum pension liability adjustments |
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Term
| What account does other comprehensive income get closed into? |
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Definition
| Accumulated Other Comprehensive Income |
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Term
| In what statement will you find accumulated other comprehensive income? |
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Definition
| Balance Sheet - Owner's Equity Section |
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Term
| What items comprise comprehensive income? |
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Definition
| Net Income + Other Comprehensive Income |
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Term
| According to the FASB’s conceptual framework, the process of recording an item in the financial statements of an entity is: |
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Definition
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Term
| The account "loss on sale of equipment" would be defined as: |
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Definition
| Decrease in asset from incidental transaction |
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Term
| The account "gain on sale of equipment" would be defined as: |
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Definition
| Increase in asset from incidental transaction |
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Term
| According to the conceptual framework for financial reporting, what are the 4 assumptions? |
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Definition
1. Economic Entity
2. Going Concern
3. Monetary Unit
4. Periodicity |
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Term
| According to the conceptual framework for financial reporting,what are the 4 principles? |
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Definition
1. Measurement
2. Revenue Recognition
3. Expense Recognition
4. Full Disclosure |
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Term
| According to the conceptual framework for financial reporting,what are the 2 constraints? |
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Definition
1. Cost
2. Industry Practice |
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Term
| According to the conceptual framework for financial reporting,what are the 2 fundamental qualities? |
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Definition
1. Relevance
2. Faithful Representation |
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Term
| According to the conceptual framework for financial reporting,what ingredients make up relevance (3)? |
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Definition
1. Predictive Value
2. Confirmatory Value
3. Materiality |
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Term
| According to the conceptual framework for financial reporting,what ingredients make up faithful representation(3)? |
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Definition
| 1. Completeness 2. Neutrality 3. Free from Error |
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Term
| According to the conceptual framework for financial reporting,what are the enhancing qualities (4)? |
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Definition
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability |
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Term
Neutrality is an ingredient of:
Relevance Faithful Representation
1. YES YES
2. YES NO
3. NO YES
4. NO NO |
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Definition
| #3 - only faithful representation |
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Term
Timelinesss is a quality of:
Relevance Faithful Representation
1. YES YES
2. YES NO
3. NO YES
4. NO NO |
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Definition
| #1 - Enhancing qualities apply to both categories |
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Term
| What would be the impact of the failure to make the adjusting entry to accrue bad debt expense on the elements of financial statements? |
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Definition
Missing:
DR - Bad Debt Expense
CR - Allowance for Doubtful Accounts
Rev. Exp. Income Asset Liab. Equity
NE U O O NE O
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Term
| What is the impact of the failure to make an adjusting entry for a deferral recorded directly to a revenue account on the elements of the financial statements? |
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Definition
Missing:
DR. Revenue
CR. Unearned Revenue
Rev. Exp. NI Asset Liab. Equity
O NE O NE U O |
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Term
| Where would the proceeds from a realized gain on trading securities be found in the financial statements? |
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Definition
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Term
| Where would the proceeds from an unrealized gain on trading securities be found in the financial statements? |
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Definition
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Term
| Where would the proceeds from a realized gain on available-for-sale securities be found in the financial statements? |
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Definition
| Income Statement - REALIZED |
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Term
| Where would the proceeds from a unrealized gain on available-for-sale securities be found in the financial statements? |
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Definition
| Other Comprehensive Income - in 1 of the 2 approved manners of presentation |
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