This is my notes page. It's pretty summarized but I think it should be enough. It's over half memorized, usually I take an hour before the exam to memorize my page but I started early this time. I'm going to write all that down the second I take a seat in the testing room – they give you 10 minutes before the test actually starts to go through prompts and I use that time to quickly write down my list.
Tuesday is the day. Third time is the charm 🙂
GM: (rev-COGS)/Rev
GP: NS – COGS
GPR: GP/Sales
DGP: GPR/AR
QR: (CA+MS+NR)/CL
AR Coll: CR Sales/avg AR
ROR Ass: NI/avg ASS
EPS: (NI-PDiv)/WASHO
PE: Mkt Val per share/EPS
Days Sales Inv: (avg inv/COGS)x(working days in the year)
DE: Total Debt/SHE
Cash->Accrual +increase CA -Decrease CA opp for CLs
H2M = B/S @ amort cost
A4S = FMV OCI unless perm impair then I/S
CFs
Indirect Method
NI
-Depr
+Losses
-Gains and Amort BP
-Equity Earnings
-change OA
+change OL
Direct Method
$ coll from customers (rev+decrease AR + increase Unearned REV)
+Sales
+int/divs
-$ Paid to customers (COGS +increase inv + decrease ap)
-Employees (Wage exp -increase WP)
-Int taxes pay
-SGA
Pay attention to T acct
Payables
Dr. B Bal – b/s
DR +CY exp – i/s
=DR E. Bal – b/s
CR will be cash pd
Trading sec=op acct
H2M/A4S Investing
Financing KeyWords: Liab, debt, negotiated, bond, note LOC, debenture etc
Liabilities – interest in Fin. prin is op
|0-cost-20-equity|50-consolidate-100|
|DONT CONSOLIDATE| CONSOLIDATE|
Net Period Pension Cost (SIRAGE)
current SERVICE cost
INTEREST cost (PBO x disc)
ROPA
AMORT prior svc cost
(GAINS) losses
amort EXISTING net oblig/ass
ROPA
BFMV P.ASS
+ Contrib
-Bene
OR
BFMVPASS * Expected ROR P.ASS
Amort PSC.
B. Unrecog PSC/Avg remaining life
Funded Status
BFS
+ contributions
+/-SIRAG (no E)
=EFS
Mkt Ceiling = NRV = SP-Disp Cost
Mkt Floor: NRV-Profit
Replacement
Market = Middle#
OCI – PUFE (R-IFRS)
Pension Adjustment
Unrealized g/l A4S
Foreign Currency Transl (not trans eg buying inv from peru)
Effective CF Hedges
Revaluation Surplus
Report – SELF
SEPARATELY ELECTED governing body
LEGALLY separate
FISCALLY independent
Govt blending if
-Board the same
-Serves Mainly Govt
-Not legally separate
Discrete unless one of above
Start the bud
DR Est Rev
CR Approp
CR Bud Cont (surplus)
Record Appropriations
DR Bud Control
CR Appropriations
Issue a PO
DR Encumb
CR Bud Control
Gen Ass Purch
Dr Expenditures
CR Vouch Pay
NFP Stmts
Fin Position
Stmt Acts
Stmt CF
Function Exp (gen welfares only)
Change est = change lifo or depr = prospective, component of inc from cont ops, no R/E adj
Change prin = retro adj b r/e
change entity = restate (even year by year b/s)
Error – prior period adj unless considered immaterial then no R/E adj
Def Tax Liab = accum depr tax > gaap, recognized installment sale income
DTA = rec'd $ in PP rent
Reportable Segment
10% Rev, P/L, and ASS, must equal at least 75%
GAAP – disclose officer loans outside normal business IFRS – disclose salary/loans
IFRS no LIFO, No change acct entity
FMV of INV/FG/WIP – SP-disposal cost and normal profit margin
FMV Raw Materials = replacement cost
Allow uncoll accts – regular CR balance
FOB Shipping-shipping costs goes to buyer
10Q goes to EDGAR
Factoring W/O recourse = a regular sale
.