FAR Fill in the Blanks

OCI/AOCI Fill-in-the-Blank Practice

Other Comprehensive Income (OCI) includes certain gains and losses that are **not reported in __________ __________ immediately. Instead, they are accumulated in ________________________ (AOCI) until they are realized or otherwise reclassified.

The major items that go into OCI are:

1. ________________ ____________ Translation adjustments.

2. Unrealized gains and losses on ____________ securities (not equity securities).

3. Pension-related adjustments, including:

   • Actuarial ____________ or ____________.

   • Prior ____________ cost (or credit).

4. Effective portion of ____________ ____________ hedges.

Items that DO NOT go into OCI include:

• Unrealized gains and losses on ____________ securities (they go directly to ____________ ____________).

• Cash dividends.

• Stock dividends.

• Treasury stock transactions.

• Net income or net loss.

At the end of each period:

Beginning AOCI + Current Year ____________ − Reclassification Adjustments = Ending ____________.

Other Comprehensive Income (OCI) includes certain gains and losses that are **not reported in Net Income immediately. Instead, they are accumulated in Accumulated Other Comprehensive Income (AOCI) until they are realized or otherwise reclassified.

The major items that go into OCI are:

1. Foreign Currency Translation adjustments.

2. Unrealized gains and losses on available-for-sale (AFS) debt securities (not equity securities).

3. Pension-related adjustments, including:

   • Actuarial gains or losses.

   • Prior service cost (or credit).

4. Effective portion of cash flow hedges.

Items that DO NOT go into OCI include:

• Unrealized gains and losses on equity securities (they go directly to Net Income).

• Cash dividends.

• Stock dividends.

• Treasury stock transactions.

• Net income or net loss.

At the end of each period:

Beginning AOCI + Current Year OCI − Reclassification Adjustments = Ending AOCI.

Operating Activities (Day-to-Day Business)

Operating activities include cash received from __________________ and cash paid for __________________ and __________________.

Examples of operating cash flows include:

• Cash collected from __________________.

• Cash paid to __________________.

• Cash paid for __________________ and wages.

• Cash paid for __________________.

• Cash received for __________________.

• Cash paid for __________________.

• Changes in __________________ assets and liabilities (A/R, Inventory, A/P, etc.).

Indirect Method Adjustments

Start with __________________.

Then:

• Add back noncash expenses like __________________ and __________________.

• Subtract gains on sale of assets.

• Add losses on sale of assets.

• Adjust for changes in __________________ capital accounts.

Operating Activities

• customers

• inventory

• operating expenses

Examples:

• Cash collected from customers

• Cash paid to suppliers

• Cash paid for salaries

• Cash paid for interest

• Cash received for interest and dividends

• Cash paid for income taxes

• Changes in working capital

Indirect Method:

• Net Income

• Depreciation

• Amortization

• Working capital

Investing Activities (Buying & Selling Long-Term Assets)

Investing activities involve buying and selling __________________ assets.

Examples include:

• Purchase of __________________.

• Sale of equipment.

• Purchase of land or buildings.

• Sale of land or buildings.

• Purchase of __________________.

• Sale or maturity of debt investments.

• Making __________________ to others.

• Collection of loan principal.

Remember:

Investing = Buying or selling things that help the company make money in the __________________.

Investing Activities

• Long-term

Examples:

• Purchase of equipment (PP&E)

• Purchase of investments (debt securities)

• Making loans

Remember:

Investing = Buying or selling things that help the company make money in the future.

Financing Activities (Borrowing & Owners)

Financing activities involve obtaining money from __________________ and __________________, or returning money to them.

Examples include:

• Issuing __________________.

• Repurchasing treasury stock.

• Issuing __________________ payable.

• Repayment of note principal.

• Issuing bonds payable.

• Repayment of bonds payable.

• Payment of __________________.

Remember:

Financing answers the question:

"Where did the company get the __________________ to operate?"

Investing Activities

• Long-term

Examples:

• Purchase of equipment (PP&E)

• Purchase of investments (debt securities)

• Making loans

Remember:

Investing = Buying or selling things that help the company make money in the future.

Cash to Accrual

What happens to';

• AR

• AP

• Unearned Revenue

• Prepaid Expense

• Accrual Expense

Account	If it INCREASES	If it DECREASES	Why
Accounts Receivable			More earned but not collected
Unearned Revenue			Cash received but not earned

Account	If it INCREASES	If it DECREASES	Why
Prepaid Expenses			Paid but not yet expensed
Accrued Expenses (Payables)			Incurred but not yet paid

Account	If it INCREASES	If it DECREASES	Why
Accounts Receivable	➕ Add	➖ Subtract	More earned but not collected
Unearned Revenue	➖ Subtract	➕ Add	Cash received but not earned

Account	If it INCREASES	If it DECREASES	Why
Prepaid Expenses	➕ Add	➖ Subtract	Paid but not yet expensed
Accrued Expenses (Payables)	➕ Add	➖ Subtract	Incurred but not yet paid

Accrual to Cash

What happens to';

• AR

• AP

• Unearned Revenue

• Prepaid Expense

• Accrual Expense

Accounts Receivable			Not collected yet
Unearned Revenue			Cash received in advance

Account	If it INCREASES	If it DECREASES	Why
Prepaid Expenses
Accrued Expenses

Accounts Receivable	➖ Subtract	➕ Add	Not collected yet
Unearned Revenue	➕ Add	➖ Subtract	Cash received in advance

Account	If it INCREASES	If it DECREASES	Why
Prepaid Expenses	➖ Subtract	➕ Add	Paid ahead of time
Accrued Expenses	➖ Subtract	➕ Add	Not paid yet

A contribution is conditional only if both of the following exist:

1. A ____________________________ must be overcome.

2. The donor has a ____________________________ of contributed resources (or a ____________________________ of the promise to give).

• barrier (measurable performance-related or other barrier)

• right of return

• release

Cash received from a donor that is restricted for the purchase or construction of long-lived assets is reported as a __________________ activity.

✅ Answer: Financing

Cash spent to purchase or construct those long-lived assets is reported as an __________________ activity.

✅ Answer: Investing

Pension Accounting Fill-in-the-Blank Part 1 – New items (Where are they recorded FIRST?)

Pension Item	Net Income	OCI/AOCI
Service cost	______	______
Interest cost	______	______
Expected return on plan assets	______	______
Prior service cost (new)	______	______
Actuarial gain (new)	______	______
Actuarial loss (new)	______	______
Foreign currency translation adjustment	______	______

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Part 2 – Amortization

Fill in the blank.

Amortization of prior service cost goes to __________.

Amortization of actuarial gain/loss goes to __________.

When actuarial losses are amortized, AOCI will Increase / Decrease (circle one).

When prior service cost is amortized, AOCI will Increase / Decrease (circle one).

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Part 3 – True or False

1. _____ Service cost affects OCI.

2. _____ Interest cost is part of pension expense.

3. _____ New actuarial gains first go to OCI.

4. _____ Amortization moves amounts from OCI to Net Income.

5. _____ Expected return on plan assets affects pension expense.

6. _____ Actual return on plan assets always affects Net Income.

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Fill-in Table (General OCI vs Net Income)

Item	Net Income	OCI/AOCI
Unrealized gain/loss on FV-NI securities	______	______
Unrealized gain/loss on FV-OCI (AFS debt) securities	______	______
Foreign currency translation adjustments	______	______
Cash flow hedge gain/loss	______	______
Fair value hedge gain/loss	______	______
Net investment hedge gain/loss	______	______
Revaluation surplus (IFRS only—not GAAP)	______	______

Pension Items

Pension Item	Net Income	OCI/AOCI
Service cost	✅
Interest cost	✅
Expected return on plan assets	✅
Prior service cost (new)		✅
Actuarial gain (new)		✅
Actuarial loss (new)		✅
Foreign currency translation adjustment		✅

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Amortization

• Amortization of prior service cost → Net Income

• Amortization of actuarial gain/loss → Net Income

• When an actuarial loss is amortized, AOCI increases (because you're removing a negative balance).

• When prior service cost is amortized, AOCI decreases (you're removing the deferred amount from AOCI).

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True/False Answers

1. ❌ False

2. ✅ True

3. ✅ True

4. ✅ True

5. ✅ True

6. ❌ False (Only the difference between actual and expected affects OCI as an actuarial gain/loss.)

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General OCI vs Net Income

Item	Net Income	OCI/AOCI
FV-NI securities	✅
FV-OCI (AFS debt) securities		✅
Foreign currency translation		✅
Cash flow hedge		✅
Fair value hedge	✅
Net investment hedge		✅

What is refundable advance?

It’s a liability, It means you’ve received money, but you haven’t yet yearned it. In other words, if you don’t meet the donor’s condition, you might have to give the money back.