[MCLKT]

Tootsie started an AUD study game if you haven’t checked it out. It’s ctually fun! (spoken like a true CPA candidate)

Let’s try it out!

“……. a game where we post FAR questions to help us study and if you know the answer, post it and ask another question. I’ll go first.

Q. How is it the Tax Expense calculated and where is it located on a Personal Financial Statement?

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[lyzgrace]

@cpa2012 Hey, no cheating! Answer mine!! =P

But in response to your question, if I understand it correctly, you're just looking at a negative goodwill scenario. So basically the parent company got a bargain on the subsidiary.

AUD: 82
FAR: 78
BEC: 75
REG: 8/1 score release!!

[Anonymous]

sum of years digit where n is the years of useful life– [n*(n+1)]/2=X

Year 1: n/x

Year 2: n-1/x

etc

Say it's a five year piece of equipment. 5*6/2=15

Year one 5/15 depreciation (that is, 1/3 of the depreciable base, including salvage cost, is depreciated)

year 2 4/15

year 3 3/15

etc

Right?

Next question: How do you account for the gain in a sale leaseback transaction?

[gobias]

It depends on what percentage the present value of the minimum lease payments are relative to the fair value of the asset.

>90%, defer and amortize over the lesser of the lease term or economic life of the asset

<10%, recognize in full immediately

In between, recognize the portion of the gain in excess of the PV of the minimum lease payments. The rest is deferred and amortized.

Is this correct? I just realized how much harder it is without a problem in front of you.

If I'm right, my question is this: What are the major differences between commercial and governmental statements of cash flows?

F - 86
R - 90
A - 97
B - 91

[Anonymous]

I know for Governmental they're required to use the direct method and that there are 4 categories– investing, financing (what is it, captial and non-capital financing?), operating.

Question:

Assets = WHAT plus owners equity?

[gobias]

That one's a doozy.

Expenses?

*A few other differences are that interest income is an investing activity, and int. expense and capital asset purchases are financing. The reconciliation is to operating income

F - 86
R - 90
A - 97
B - 91

[peetree]

What is the difference between the book value and the market value method for recognizing the exercise of convertible bonds?

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[nolifecpa]

no G/L for BV method

REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76*,78
FAR-67,66,65,79
AUD-54,60's,65,83*,69,80
*expired

DONE

[nolifecpa]

in IFRS stmt of cash flows, divd paid can either be classified as ____ or ____?

REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76*,78
FAR-67,66,65,79
AUD-54,60's,65,83*,69,80
*expired

DONE

[gobias]

operating or financing

F - 86
R - 90
A - 97
B - 91

[Anonymous]

cash from financing or cash from operations.

How do you account for freight in? For freight out?

[gobias]

How do you calculate gross profit under the percentage of completion method?

Edit: freight in is included in the cost of inventory and freight out is a selling expense.

F - 86
R - 90
A - 97
B - 91

[peetree]

“How do you account for freight in? For freight out?”

Freight-in should be an inventory cost and freight out should be a part of selling expenses.

What is the difference between blended and discrete presentation within governmental accounting?

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[lyzgrace]

Repeat question. Points deducted from team peetree.

AUD: 82
FAR: 78
BEC: 75
REG: 8/1 score release!!

[peetree]

“FUCCCCCCCCCCCCCCCCCCCCC….” :p

When are dividends recorded in the general ledger and what is the standard journal entry?

FAR 02/21/13 - 95
REG 07/02/13 - 87
AUD 08/02/13 - 94
BEC 08/30/13 - 85
Ethics Exam - 90

Illinois candidate awaiting his license

Used Becker Self Study | Ninja Audio | Becker Flash Cards | Ninja Notes | Wiley Test Bank

[lyzgrace]

Gross profit under % of completion:

– Find % complete (= total cost to date/total estimated project cost)

– Find total estimated gross profit (= contract price – total estimated project cost)

– Find profit to date (= total estimated gross profit * percentage complete)

– Calculate current year gross profit (= profit to date – previously recognized gross profit)

ETA – sorry, that was in response to gobias's, which got lost in the shuffle, lol. Someone else can take peetree's ^^^

AUD: 82
FAR: 78
BEC: 75
REG: 8/1 score release!!

[Author]

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