FAR F1 Flashcards

What are the Full Set of Financial Statements

1) Statement of Financial Position (Balance Sheet)

2) Statement of Earnings (Income Statement)

3) Statement of Comprehensive Income

4)Statement of Cash Flows

5)Statement of Owner's Equity

What are the Form 10-K Filing Deadlines

60 days for large accelerated filers

75 days for accelerated filers

90 days for all others

What are the Form 10-Q Filing Deadlines

40 days for large accelerated and accelerated filers

45 days for all others

Stock Issued Above Par JE

DR: Cash (Shares * Purchase Price)

CR: Common Stock (Shares * Par Value)

CR: APIC - C/S (Plug)

Stock Issued at Par JE

DR: Cash (Shares * Par Value)

 CR: Common Stock (Shares * Par Value)

Stock Issued Below Par JE

DR: Cash (Shares * Purchase Price)

DR: APIC (Plug)

 CR: Common Stock (Shares*Par Value)

Record Subscription Receivable JE 

DR: Subscriptions Receivable (Shares * Purchase Price)

 CR: Common Stock Subscribed (Shares*Par Value)

 CR: APIC - C/S (Plug)

Collection of Subscriptions J/E

DR: Cash

CR: Subscription Receivable

Issuance of Subscriptions JE

DR: Common Stock Subscribed (At Par)

 CR: Subscription Receivable (At Par)

Dividend Date of Declaration

Becomes a liability and reduces retained earnings

Dividend Date of Record

No Journal Entry, Memorandum entry only

Dividend Date of Payment

Actually Paid

Current Liquidity Ratio

Current Assets / Current Liabilities

Solvency Ratio

Debt / Equity

Items in Comprehensive income acronym

PUFI

What does the “P” in PUFI Stand for

Pension Adjustments

What does the “U” in PUFI Stand for

Unrealized G/Ls on AFS

What does the “F” in PUFI Stand for

Foreign Currency Items

What does the “I” in PUFI Stand for

Instrument Specific Credit Risk

Comprehensive Income Formula

Net Income + OCI

Common Shares Outstanding Formula

Shares issued - Shares Repurchased

Retained Earnings Formula

Beginning RE + Net Income - Dividends

Stock Subscription Default

1) issue stock in proportion to amount paid

2) refund the partial payment

3) retain the partial payments with APIC

Retirement of Treasury Stock (Cost Method) JE

DR: Common Stock (Shares * Par)

DR: APIC - C/S (OG Price - Par * Shares)

DR: Retained Earning (Plug)

CR: Treasury Stock (Repurchase Price * Shares)

Retirement of Treasury Stock (Par Method) JE

DR: Common Stock (Plug)

 CR: Treasury Stock (Shares * Par Value)

T/F - Use Fair Market value on all property (In Kind Dividends)

True

Scrip Dividend

Used when there's a cash shortage, Used Notes Payable

Small Stock Dividends

Retained Earnings ↓ by FMV

Large Stock Dividends

Retained Earnings ↓ by Par Value

Basic EPS Formula

Income Available to Common Shareholders / Weighted Average Number of Common Shares Outstanding

Income Available to Common Shareholders Formula 

Net Income - Preferred Dividends

Preferred Dividends Formula

Cumulative: # of Pref Shares * Par Value *Rate

Noncumulative: Declared

Diluted EPS Formula

Income Available + Interest on Dilutive Securities / WAOCS (with all securities converted to common stock)

What are two types of foreign currency transactions

Operating Transactions and Forward Exchange contracts

Comprehensive Income Definition

Change in Equity (net assets) that results from transactions and other events and circumstances from non-owner sources

Common Stock Definition

Residual Owner Interest