far review 1 21 2021

  1. A city council designates funds in the enterprise fund for future equipment replacement. The enterprise fund should report this as
    An unrestricted component of net position.
  2. Debentures are ----------------- bonds.
    Debentures are unsecured bonds.
  3. Both finance and operating leases result in recognition of a lease liability and ------------------------- at the lease commencement date.
    Both finance and operating leases result in recognition of a lease liability and a right-of-use asset at the lease commencement date.
  4. Both finance and operating leases result in -----------------------------------------------and a right-of-use asset at the lease commencement date.
    Both finance and operating leases result in recognition of a lease liability and a right-of-use asset at the lease commencement date.
  5. Under both finance and operating leases, at the lease commencement date, a lessee must ------------------------------ and --------------------------------
    Under both finance and operating leases, at the lease commencement date, a lessee must recognize a lease liability and a right-of-use asset.
  6. cash dividends are a -------------------------- outflow.
    cash dividends are a financing cash outflow.
  7. --------------------------- flows include the payment and collection of interest,
    Operating cash flows include the payment and collection of interest,
  8. The general fund of a local government lends $100,000 to an internal service fund that provides transportation services. In the government-wide statement of financial position, this internal transaction is
    An elimination.
  9. When the activities of governmental funds and internal service funds are both governmental, the effects of transactions between them must be -----------------------
    When the activities of governmental funds and internal service funds are both governmental, the effects of transactions between them must be eliminated.
  10. In the government-wide statement of financial position, internal service funds generally are reported in the ---------------------------------------
    In the government-wide statement of financial position, internal service funds generally are reported in the governmental activities column.
  11. The three standard sections of a state or local government’s CAFR are the
    -----------------------,
    the -------------------------
    and -------------------------
    • The three standard sections of a state or local government’s CAFR are the
    • introductory section,
    • the financial section,
    • and the statistical section.
  12. A company using the composite depreciation method for its fleet of trucks, cars, and campers retired one of its trucks and received cash from a salvage company. The net carrying amount of these composite asset accounts was decreased by the
    Cash proceeds received.
  13. A deferred tax asset must be reduced by a valuation allowance if it is
    More likely than not that some portion will not be realized.
  14. A deferred tax asset shall be reduced by a valuation allowance if the weight of the available evidence, both positive and negative, indicates that it is -------------------------------------------------------- that some portion will not be realized.
    A deferred tax asset shall be reduced by a valuation allowance if the weight of the available evidence, both positive and negative, indicates that it is more likely than not (that is, the probability is greater than 50%) that some portion will not be realized.
  15. Band Co. uses the equity method to account for its investment in Guard, Inc., common stock. How should Band record a 2% stock dividend received from Guard?
    As a memorandum entry reducing the unit cost of all Guard stock owned.
  16. No entries are made to record the receipt of ------------------------.
    No entries are made to record the receipt of stock dividends.
  17. Supporting activities are all activities of an NFP other than ----------------------------. They include management and general, fundraising, and membership-development activities.
    Supporting activities are all activities of an NFP other than program services. They include management and general, fundraising, and membership-development activities.
  18. Supporting activities are all activities of an NFP other than program services. They include ---------------------------------------------, and ----------------------------------------- activities.
    Supporting activities are all activities of an NFP other than program services. They include management and general, fundraising, and membership-development activities.
  19. -------------------- equals net sales minus cost of goods sold.
    Gross profit equals net sales minus cost of goods sold.
  20. Under both finance and operating leases, at the lease commencement date, a lessee must recognize a lease -------------- and a right-of-use ------------.
    Under both finance and operating leases, at the lease commencement date, a lessee must recognize a lease liability and a right-of-use asset.
  21. The change in equity during a period from transactions and other events and circumstances from nonowner sources
    Comprehensive income
  22. --------------------------- is the periodic change in equity of a business entity from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
    Comprehensive income is the periodic change in equity of a business entity from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
  23. --------------is entity-specific
    materiality is entity-specific
  24. The periodicity ------------------------- requires the use of estimates in the preparation of financial statements.
    The periodicity assumption requires the use of estimates in the preparation of financial statements.
  25. The relevant attribute used to measure assets expected to be sold at below their carrying amount
    Current market value
  26. The relevant attribute defined as the cash or equivalent that would be paid for a current acquisition of the same or an equivalent asset
    Replacement cost
  27. ------------------------------- is used to measure some marketable securities, e.g., those held by investment companies, or assets expected to be sold at below their carrying amount.
    Current market value is used to measure some marketable securities, e.g., those held by investment companies, or assets expected to be sold at below their carrying amount.
  28. -------------------------------------- is used to measure certain inventories, e.g., LIFO and retail method inventories measured at market when it is lower than historical cost. It is the cash or equivalent that would be paid for a current acquisition of the same or an equivalent asset.
    Replacement cost (current cost) is used to measure certain inventories, e.g., LIFO and retail method inventories measured at market when it is lower than historical cost. It is the cash or equivalent that would be paid for a current acquisition of the same or an equivalent asset.
  29. The sum of the current tax expense or benefit and deferred tax expense or benefit.
    Income tax expense or benefit.
  30. Equal to taxable income times the applicable tax rate.
    Current tax liability. 
  31. The result from the settlement of a liability related to an expense or loss that is deductible for tax purposes subsequent to being recognized in financial income.
    Future deductible amount. 
  32. Records the deferred tax consequences attributable to taxable temporary differences.
    Deferred tax liability.
  33. Differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years.
    Temporary differences.
  34. Records the deferred tax consequences attributable to deductible temporary differences and carryforwards.
    Deferred tax asset.
  35. The result from the recovery of an asset related to a revenue or gain that is taxable subsequent to being recognized in financial income.
    Future taxable amount.
  36. The net change during the year in an entity's deferred tax liabilities and assets.
    Deferred tax expense or benefit.
  37. The amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.
    Current tax expense or benefit.
  38. --------------------------------This is the amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.
    Current tax expense or benefit. This is the amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.
  39. -------------------------------- This is the net change during the year in an entity’s deferred tax liabilities and assets.
    Deferred tax expense or benefit. This is the net change during the year in an entity’s deferred tax liabilities and assets.
  40. ----------------------------- This results when a revenue or gain is taxable subsequent to being recognized in financial income. It also results when an expense or loss is deductible for tax purposes before recognition in financial income.
    Future taxable amount. This results when a revenue or gain is taxable subsequent to being recognized in financial income. It also results when an expense or loss is deductible for tax purposes before recognition in financial income.
  41. ----------------------------- This records the deferred tax consequences attributable to deductible temporary differences and carryforwards. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.
    Deferred tax asset. This records the deferred tax consequences attributable to deductible temporary differences and carryforwards. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.
  42. --------------------------------These include differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset is recovered or a liability is settled.
    Temporary differences. These include differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset is recovered or a liability is settled.
  43. -------------------------------- This records the deferred tax consequences attributable to taxable temporary differences. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.
    Deferred tax liability. This records the deferred tax consequences attributable to taxable temporary differences. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.
  44. ----------------------------------- This results when an expense or loss is deductible for tax purposes subsequent to being recognized in financial income. It also results when a revenue or gain is included in taxable income before it is recognized in financial income.
    Future deductible amount. This results when an expense or loss is deductible for tax purposes subsequent to being recognized in financial income. It also results when a revenue or gain is included in taxable income before it is recognized in financial income.
  45. ---------------------------------- This is equal to taxable income times the applicable tax rate.
    Current tax liability. This is equal to taxable income times the applicable tax rate.
  46. ----------------------------- This is the sum of the current tax expense or benefit and deferred tax expense or benefit.
    Income tax expense or benefit. This is the sum of the current tax expense or benefit and deferred tax expense or benefit.
  47. Under U.S. GAAP, receipt of interest is always an ---------------------.
    Under U.S. GAAP, receipt of interest is always an operating item.
Author
Joens1313
ID
354269
Card Set
far review 1 21 2021
Description
far review 1 21 2021
Updated