Intermediate Accounting

Deflation of consistency (vs.. Comparability) 2. Relevance vs.. Faithful representation a. Investors want information right now 3. Calculate net assets 4. Adjusting entries related to Prepaid Insurance 5. Fundamental qualities of useful accounting information a. Chart In beginning chapters that has relevance, neutrality, etc. 6. Costs that are expensed vs.. Costs that are capitalized for Internally created Intangible assets a. What did we do with R&D costs? 7. Calculate percentage and number of periods for quarterly compounding interest a.

Time value of money . Straight-line depreciation a. For an asset that originally had a nine year useful life and decided later that it only had 5 year useful life. Change the depreciation expense 9. Under which cash flows statement category certain satellites fall a. Investing, Financing, or Operating? 10. Review the “Land” problem related to lump-sum purchases a. Look back at chapter with example about buying a huge tract of land, then land was divided, had to allocate cost of the land. B. Boxes are yellow 11. Calculate goodwill a. Purchase price – fair value market of the net assets 12.

Calculate depletion . Like depreciation, except for natural resources 13. Ordinary annuity vs.. Annuity due a. Ordinary annuity happens at the end of a period b. Annuity due happens at the beginning of a period 14. Where should treasury stock be reported? A. On the balance sheet under stockholders equity 15. Bank reconciliation (compute the correct cash balance) 16. Compute ending balance In allowance for unconvertible accounts given the percentage of receivables method is used a. Calculate the ending balance in allowance for doubtful accounts 17. Diagram depiction of TV concept a. Chart is given b.

Present value of an annuity due, present value of an ordinary annuity? 18. Revenue recognition – magazine subscriptions a. When do we recognize revenue? B. We recognize revenue when we earn it 19. Identify selling expense 20. Compute the floor when apply lower-of-cost-or-market 21 . Compute double-declining balance depreciation expense 22. Impairment of machinery 23. Land vs.. Land Improvements receivable gross method (vs.. Net method) 26. Compute annual insurance expense given premiums paid and prepaid insurance beginning and ending balances 27. Yield from various compounding interest approaches (yearly vs.. Monthly vs.. Weekly) 28. On what type of intangible is recoverability test used? 29. Events that have no effect on net income 30. Capitalization vs.. Expense of expenditures related to a machine 31 . Ingredients of relevance 32. Major distinction between FAST and APP 33. Entry to write off unconvertible accounts using the allowance method 34. Journal entry related to unearned revenue 35. What is consigned inventory 36. Accounting for goods in transit purchased f. O. B destination/f. O. B shipping point 37. Compute PEPS 38. Common stock issued to buy machine – how does this affect statement of cash lows 39.

Why use accrual accounting? 40. Publicly traded companies submit financial statements to whom? 41 . Compute net realizable value 42. What principle is violated when a company switches inventory valuation methods from year to year? 43. Characteristics of a perpetual inventory system 44. Capitalized costs of self-constructed assets 45. Compute net accounts receivable 46. Identify cash and cash equivalents 47. Primary users of general-purpose financial statements 48. Characteristics of plant assets 49. Examples of downward earnings management 50. Calculate goodwill