[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I picked C as I think a lending institution was not a comprehensive basis of accounting other than generally accepted accounting principles.

[NJPRU]

D

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Anonymous]

[Anonymous]

C fo' sho!

[WANNABE_CPA]

C ?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[stoleway]

C is correct….see explanation below. I chose D as well:(

A comprehensive basis of accounting other than GAAP may be (1) a basis that the reporting entity uses to comply with the requirements or financial reporting provisions of a regulatory agency; (2) a basis used for tax purposes; (3) the cash basis, and modifications of the cash basis having substantial support, such as recording depreciation on fixed assets or accruing income taxes; or (4) a definite set of criteria having substantial support that is applied to all material items, for example, the price-level basis. However, a basis of accounting used by an entity to comply with the financial reporting requirements of a lending institution does not qualify as governmentally mandated or as having substantial support.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

Ok — LOL I got it right and then when i started looking at D's — was like Huh ?? a lending institution is not acceptable basis for other than GAAP.

[NJPRU]

I dont like that question, either. 🙂

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[stoleway]

Pal Corp’s current year dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the dividend reduced Pal’s carrying amount for its Ima investment. This reflects the fact that Pal accounts for its Ima investment by the

A. Equity method, and its carrying amount exceeded the proportionate share of Ima’s fair value.

B. Cost method, and its carrying amount exceeded the proportionate share of Ima’s fair value.

C. Equity method, and Ima incurred a loss in the current year.

D. Fair value method or cost method, and only a portion of Ima’s dividends represent earnings after Pal’s acquisition.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

I hate Wordy questions

So I am thinking when it says the Balance of the Dividend reduced the CV Pal has in its Investment account in the Balance sheet = meaning it is the Equity method as that Pals is using to record the Investment – so it would recisporcate Ima Net Income and Dividend paid. Net Income Increase the balances – Dividends paid reduce the investment.

But I now I don't like either Answer of A or C LOL

So I would stare at this question thinking What the F are they talking about!

[jrosen92770]

b

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[Anonymous]

Or are they trying to say part of the Dividend is a liquidating Dividend so It would then be B.

[jrosen92770]

lol

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[jrosen92770]

may i as what shemerr means

BEC - 5/26/2013 75
REG - 8/31/2013 82
AUD - 11/24/2013 74, 2/9/2014 92
FAR - 5/25/2014 85

NY CPA

[NJPRU]

b

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[Author]

Replies