F2 general Cards

For software development cost, what costs are expensed unitel technological feasability is established.

For computer software development, are the following Expensed or capitalized before product feasibility has been established

1. planning
2. design
3. coding
4. testing

For computer software development, are the following Expensed or capitalized after product feasibility has been esstablished

1. coding
2. testing
3. producing product masters

Under US GAAP the only acceptable method of accounting for research and development cost is to ---------------------- them

Royalties paid should be reported as an -------------------------in the period incurred

When should royalties be reported as an expense

Goodwill is not amortized, but it is subject to an ----------------------------------------

when customers pay an annual fee in advance, when should the revenue be recognized

What is it called when customers pay an annual fee for a service and the revenue is recognized evenly over the contract period as the services are performed

Under US GAAP is R&D contracted out to a third party expensed?

Under US GAAP are preproductions prototypes and models costs expensed

Under US GAAP are the costs for searching for new products or new products expensed

Goodwill is capitalized ony when incurred in the --------------------------------------

---------------------------is capitalized only when incurrred in the purchase of another enitity

costs incurred for maintaining or developing goodwill are

Software developed for internal use, unralated to production and is not considered reserch and development is

Market reasearch is not considered R&D, there it should be

Legal fees and other costs associated with registering a patent are

Research and development costs, under US GAAP, are

Any legal costs used to successfuly defend a patent should be ------------------------------- over the lessor of the patents useful economic life or its legal life

Any legel costs used to seccessfully defend a patent should be capitalized or amortized over the ----------------------------------------------------------------------------------------------

Under the right of return rule, nothing should be recorded as sales rvenue unless four conditions are met.  What are those conditions

Are development or improvement of techniquues and processes a research and development cost?

Is reaserch and development performed under contract for others a R & D cost

Is Market Reserch a R & D cost?

Revenues should be -------------------------------- in the period in which they were earned and realized or realizable

--------------------------- should be recognized in the period in which they were earned and realized or realizable

-------------------------- are recognized when an entitys economic benefits are used up in delivering or producing goods, rendering services, or other activities that constitute its ongoing major or centrol operations

Goodwill should be ------------------------------------------------for impairment

Finite life intangables are---------------------------------over the period to be benefited

US GAAP requires that goodwill be tested for impairmant at the -----------------------------------------------------

US GAAP requires that ---------------------------- be tested for imapirment at the reporting unit level

Under US GAAP subsequent reversal of intangible asset impairment lossos are --------------------------

Under us US GAAP when is the only time an intangable asset impairment can be reversed

Under US GAAP legal costs associated with obtaining a patent on a new product qualifies for

Under US GAAP legal costs associated with obtaining a patent on a new product qualifies for asset Capitalization T/F
True False

The matching principle matches --------------------- against ------------------------------- in the same accounting period

For accounting GAAP purposes the cost to develop computer software for ultimate sale should be ------------------------------ if they are relevant design costs incurred before technological feasibility is established

For accounting GAAP purposes the cost to develop computer software for ultimate sale should be expensed if they are relevant design costs incurred before -------------------------------------------------

Under IFRS the purchase price of a patant, the Value added taxes, and the legal costs to register the patant are

Under IFRS Research expenditures must be ---------------------------------------------

Under IFRS staff training and administrative salaries must be ---------------------------------

under US GAAP if the net carrying value exceeds the undeiscounted cash flows, then an -------------------- is recorded equal to the difference between the carrying value and fair value of the asset.

under US GAAP if the net carrying value exceeds the undeiscounted cash flows, then an impairment loss is recorded ---------------------------------------------------------------------------------------------------------.

under US GAAP if the net carrying value exceeds the ---------------------------------------, then an impairment loss is recorded equal to the difference between the carrying value and fair value of the asset.

under US GAAP if the ---------------------------- exceeds the undiscounted cash flows, then an impairment loss is recorded equal to the difference between the carrying value and fair value of the asset.

Under IFRS goodwill impairment is analyzed at the ------------------------------------------------------

Under IFRS an impairment loss is recorded for the -------------------------------------------- of an intangible asset over its recoverable amount

Under IFRS an impairment loss is recorded for the excess of the carrying value of an intangible asset over its ----------------------------------------

Under IFRS an impairment loss is recorded for the excess of the ------------------------------------------------over its recoverable amount

Under US GAAP intangible assets should be amortized over the lesser of the --------------------------------------.

Under IFRS the development cost may be capitalized if all the following critria are met

Under IFRS the development cost may be capitalized if all the following critria are met
1. ---------------------------------------------
  2. the comapny intends to completet the asset
3. the company has the ability to sell or use the asset
4. sufficient resources are available to complete the development and/ use the asset
5. the asset will generate futrue economic benefits

Under IFRS the development cost may be capitalized if all the following critria are met
1. technical feasibility has been established 
2. ---------------------------------------------
3. the company has the ability to sell or use the asset
4. sufficient resources are available to complete the development and/ use the asset
5. the asset will generate futrue economic benefits

Under IFRS the development cost may be capitalized if all the following critria are met
1. technical feasibility has been established 
2. the comapny intends to completet the asset
3. ------------------------------------------------
4. sufficient resources are available to complete the development and/ use the asset
5. the asset will generate futrue economic benefits

Under IFRS the development cost may be capitalized if all the following critria are met
1. technical feasibility has been established
  2. the comapny intends to completet the asset
3. the company has the ability to sell or use the asset
4. ---------------------------------------------------------
5. the asset will generate futrue economic benefits

Under IFRS the development cost may be capitalized if all the following critria are met
1. technical feasibility has been established 
2. the comapny intends to completet the asset
3. the company has the ability to sell or use the asset
4. sufficient resources are available to complete the development and/ use the asset
5. the asset will generate futrue economic benefits

For the completed contract method, When are losses and profit recognized

the cost recovery method is appropriate when there is ----------------------------------------------------------------------

T/F

The cost recovery method is appropoiate when there is no reasonable basis for estimating collectibility 
True False

Under the --------------------------------method revenue is recognized after cash eualing the cost of the item is collected.

Under the ---------------------------------------------------------------method gross profit is recognized as a gross profit percentage times the cash collected from the sale

US GAAP

In order for a transaction to have commercial substance either (1) the risk, timing, and amount of the ------------------------------------ from the asset transferred diffes significantly from the risk, timing, and the amount of the expected future cash flows from the -------------------------, or (2) the entity - specific value of the asset recieved differs significantly from the asset transferred.

When a non monetary transaction has commercial substance, gains and losses are recognized based on the difference between the --------------------------------- and the -----------------------------------  of the asset given up

under the rule of conservatism losses are recognized in all nonmonetary exchanges when the ----------------------------------------- exceeds the ------------------------------- of the asset given up.

Under IFRS excahnges of ------------------------------- are regarded as exchanges that generate revenue and all gains and losses are recognized

Under IFRS exchanges of dissimilar assets are regarded as exchanges that generate revenue and all ---------------- and ------------------are recognized

Under ---------------------------------------------------------------------------- specific price indexes may be used to restate financial statements items

during a period of inflation holding a monetary liability would result in a purchasing power -----------------

Current cost amounts of inventory and property palnt and equipment are measured at ------------------------------- or --------------------------------- at the measurement date

The functional currency of a company may be ---- 

Gains an losses resluting from foreign transactions that are an extension of hte parents domestic operations are included as a component of -------------------------------------------------------------------------------- in the period in which they occur

A cumulative foreign exchange translation loss woudl be a debit to accumulated other comprehensive income therefore -----------------------------------------------

a cumulative foreign exchange translation loss would be a debit to --------------------------------------------------- therefore contra to shareholder equity

a subsidiarys financial statements are usually maintained in its --------------------------------

a subsidiarys financial statements are ususally maintained in its local currency.  If the subsidaiarys functional currency is its local currency the subsidiarys financial statements are simply translatd to the reporting currency.  The resulting adjustment is reported as -------------------------------------------------------------. 

a subsidiarys financial statements are ususally maintained in its local currency.  If the subsidaiarys functional currency is its local currency the subsidiarys financial statements are simply ---------------------- to the reporting currency.  The resulting adjustment is reported as other comprehensive income. 

if a subsidiary s functional curreny is not the same as its local currency the subsidiary financial statemetns must be remeasured into the functinal currency.   The resulting gain or loss on remeasurement is reproted in the ---------------------------------------------.

if a subsidiary s functional curreny is not the same as its local currency the subsidiary financial statemetns must be -----------------------------------------------------.   The resulting gain or loss on remeasurement is reproted in the colsolidated income statement

Conversion adjustments associated wiht remeasurement of financial statements is displayed in---------------------------------------------------------

Conversin adjustments associated with translation of financial statements are displayed in ----------------------------------------------------------

in financial statements prepared on the ----------------------, the nondeductable portion of expenses should be included in the expense category in the determination of income.

in financial statements prepared on the income tax basis, the -------------------------------- should be included in the expense category in the determination of income.

in financial statements prepared on the income tax basis, the nondeductable portion of expenses should be included in the ------------------ category in the determination of income.

On a personal statement of financial condition, estimated income taxes equals the diffeence between ---------------- and tax bases of assets and liabilites

On a personal statement of financial condition, estimated income taxes equals the diffeence between fair values and -----------------------------------

on personnal financial statements all items are reported at their ---------------------------

Personnal financial statements usually include a -------------------------------- and a statement of changes in net worth

Personnal financial statements usually include a statement of financial condition and a ----------------------------------------------------

a busienss interest that constitutes a large part of an individuals total assets should be presented in a ---------------------------------------- as a single amount equal to the estimated current value of the business interest

a busienss interest that constitutes a large part of an individuals total assets should be presented in a personal statement of financial condition as a single amount equal to the ------------------------------------------------------

pesonal financial statements should report assets and liabilites at estimated current values at the ---------------------------------------------------

pesonal financial statements should report assets and liabilites at ----------------------------- at the date of the financial statements

pesonal financial statements should report --------------------------------- at estimated current values at the date of the financial statements

In all nonmonetary transaction the fair value given is -------- to the fair value recieved.   

When fixed asset is sold, gain or loss is recognized as part of ----------------------------------------------.  The amount of the gain or loss is equal to the difference between the procedds from the sale and the carrying amount of the fixed asset sold or converted

When fixed asset is sold, gain or loss is recognized as part of income from continueing operations.  The amount of the gain or loss is -------------------------- between the procedds from the sale and the carrying amount of the fixed asset sold or converted

gains or losses on fixed assets are always recognized during the ------------------------ based on recorded amount plus any costs associated with the transaction

gains or losses on fixed assets are always recognized during the period incurred based on recorded amount plus any ------------------------------------

When a fixed asset is sold gain or loss is recognized as part of ----------------------------------------------

Research and development costs are expensed as incurred under US GAAP except if for

An amount of defeered gross profit relating to installment AR collections 12 months beyonds the balance sheet date should be reported in the  -------------------------------- as a contra account

An amount of defeered gross profit relating to installment AR collections 12 months beyonds the balance sheet date should be reported in the  current asset section as a ------------------------------------

Royalties received should be reported as revenue in the -----------------------------

Current cost financial statements report holding gains for ----------------- sold during the period and holding gains on -------------- at the end of the period.  They also include holding gains and losses on all other accounts in the financial statements.

----------------------------------report holding gains for goods sold during the period and holding gains on inventory at the end of the period.  They also include holding gains and losses on all other accounts in the financial statements.

Holding net monetary assets during inflation will result in a -----------------------------------

Holding net monetary assets during --------------------- will result in a loss of purchasing power

Holding net -------------------------- during inflation will result in a loss of purchasing power

A company that wishes to disclose informaiton about the effect of changeing prices should report this informaiton in --------------------------------------------------------------

A company that wishes to disclose informaiton about the effect of -----------------------should report this informaiton in supplementary informaiton to the financial statements

a translation loss from a wholly owned foreign subsidiary is not included in -------------------- as it does not impact cash flows.  It would be included in other comprehensive income in -------------------------------.

a translation loss from a wholly owned foreign subsidiary is not included in net income as it does not impact -----------------.  It would be included in other comprehensive income in shareholders equity.

a translation loss from a wholly owned foreign subsidiary is not included in net income as it does not impact cash flows.  It would be included in other ---------------------------------------------- in shareholders equity.

If an entitys books are not maintained in its functional currency, remeasurement into the functinal currency is required.  Any gains or losses are included in determining net income and are classified as part of ---------------------------------------.

If an entitys books are not maintained in its functional currency, ---------------------------------------------- is required.  Any gains or losses are included in determining net income and are classified as part of continueing operations.

If an entitys books are not maintained in its functional currency, remeasurement into the functinal currency is required.  Any ----------------------------- are included in determining net income and are classified as part of continueing operations.

If an entitys books are not maintained in its ---------------------------------------, remeasurement into the ------------------------------------- is required.  Any gains or losses are included in determining net income and are classified as part of continueing operations.

a gian or loss from a forward exchange contract for speculation is equal to the difference in the----------------------------------------------------- and the forward rate at the BS date

a gian or loss from a --------------------------------- for speculation is equal to the difference in the forward rate at the date the contract is purchased and the forward rate at the BS date