F2 general Cards

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F2 general Cards
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2012-07-18 16:27:18
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  1. For software development cost, what costs are expensed unitel technological feasability is established.
    • 1. planning
    • 2. design
    • 3. coding
    • 4. testing   
  2. For computer software development, are the following Expensed or capitalized before product feasibility has been established

    1. planning
    2. design
    3. coding
    4. testing
    expensed
  3. For computer software development, are the following Expensed or capitalized after product feasibility has been esstablished

    1. coding
    2. testing
    3. producing product masters
    capitalized
  4. Under US GAAP the only acceptable method of accounting for research and development cost is to ---------------------- them
    expense
  5. Royalties paid should be reported as an -------------------------in the period incurred
    expenses
  6. When should royalties be reported as an expense
    in the period incurred
  7. Goodwill is not amortized, but it is subject to an ----------------------------------------
    impairment test
  8. when customers pay an annual fee in advance, when should the revenue be recognized
    evenly over the contract as the services are performed
  9. What is it called when customers pay an annual fee for a service and the revenue is recognized evenly over the contract period as the services are performed
    accrual basis of accounting
  10. Under US GAAP is R&D contracted out to a third party expensed?
    Yes
  11. Under US GAAP are preproductions prototypes and models costs expensed
    Yes
  12. Under US GAAP are the costs for searching for new products or new products expensed
    Yes
  13. Goodwill is capitalized ony when incurred in the --------------------------------------
    purchase of another entity
  14. ---------------------------is capitalized only when incurrred in the purchase of another enitity
    goodwill
  15. costs incurred for maintaining or developing goodwill are
    expensed
  16. Software developed for internal use, unralated to production and is not considered reserch and development is
    capitalized
  17. Market reasearch is not considered R&D, there it should be
    capitalized
  18. Legal fees and other costs associated with registering a patent are
    capitalized
  19. Research and development costs, under US GAAP, are
    Expensed
  20. Any legal costs used to successfuly defend a patent should be ------------------------------- over the lessor of the patents useful economic life or its legal life
    capitaled and amortized
  21. Any legel costs used to seccessfully defend a patent should be capitalized or amortized over the ----------------------------------------------------------------------------------------------
    lessor of the patents useful economic or its legal life
  22. Under the right of return rule, nothing should be recorded as sales rvenue unless four conditions are met.  What are those conditions
    • 1. the sales price is substantially fixed
    • 2. the buyer assumes all risk of loss
    • 3. the buyer has paid some form of consideration
    • 4. the amount of returns can be reasonably estimated   
  23. Are development or improvement of techniquues and processes a research and development cost?
    Yes
  24. Is reaserch and development performed under contract for others a R & D cost
    no
  25. Is Market Reserch a R & D cost?
    no
  26. Revenues should be -------------------------------- in the period in which they were earned and realized or realizable
    recognized
  27. --------------------------- should be recognized in the period in which they were earned and realized or realizable
    revenues
  28. -------------------------- are recognized when an entitys economic benefits are used up in delivering or producing goods, rendering services, or other activities that constitute its ongoing major or centrol operations
    revenues
  29. Goodwill should be ------------------------------------------------for impairment
    analyzed periodically
  30. Finite life intangables are---------------------------------over the period to be benefited
    amortized
  31. US GAAP requires that goodwill be tested for impairmant at the -----------------------------------------------------
    reporting unit level
  32. US GAAP requires that ---------------------------- be tested for imapirment at the reporting unit level
    impairment
  33. Under US GAAP subsequent reversal of intangible asset impairment lossos are --------------------------
    prohibited unless the intangalbe asset is held for sale
  34. Under us US GAAP when is the only time an intangable asset impairment can be reversed
    if the asset is held for sale
  35. Under US GAAP legal costs associated with obtaining a patent on a new product qualifies for
    asset capitalization
  36. Under US GAAP legal costs associated with obtaining a patent on a new product qualifies for asset Capitalization T/F
    True
  37. The matching principle matches --------------------- against ------------------------------- in the same accounting period
    expenses / revenues
  38. For accounting GAAP purposes the cost to develop computer software for ultimate sale should be ------------------------------ if they are relevant design costs incurred before technological feasibility is established
    expensed
  39. For accounting GAAP purposes the cost to develop computer software for ultimate sale should be expensed if they are relevant design costs incurred before -------------------------------------------------
    technological feasibility is established
  40. Under IFRS the purchase price of a patant, the Value added taxes, and the legal costs to register the patant are
    capitalized
  41. Under IFRS Research expenditures must be ---------------------------------------------
    expensed
  42. Under IFRS staff training and administrative salaries must be ---------------------------------
    expensed
  43. under US GAAP if the net carrying value exceeds the undeiscounted cash flows, then an -------------------- is recorded equal to the difference between the carrying value and fair value of the asset.
    impairment loss
  44. under US GAAP if the net carrying value exceeds the undeiscounted cash flows, then an impairment loss is recorded ---------------------------------------------------------------------------------------------------------.
    recorded equal to the difference between the carrying value and fair value of the asset
  45. under US GAAP if the net carrying value exceeds the ---------------------------------------, then an impairment loss is recorded equal to the difference between the carrying value and fair value of the asset.
    undeiscounted cash flows
  46. under US GAAP if the ---------------------------- exceeds the undiscounted cash flows, then an impairment loss is recorded equal to the difference between the carrying value and fair value of the asset.
    net carrying value
  47. Under IFRS goodwill impairment is analyzed at the ------------------------------------------------------
    cash generating unit level
  48. Under IFRS an impairment loss is recorded for the -------------------------------------------- of an intangible asset over its recoverable amount
    excess of the carrying value
  49. Under IFRS an impairment loss is recorded for the excess of the carrying value of an intangible asset over its ----------------------------------------
    recoverable amount
  50. Under IFRS an impairment loss is recorded for the excess of the ------------------------------------------------over its recoverable amount
    carrying value of an intangible asset
  51. Under US GAAP intangible assets should be amortized over the lesser of the --------------------------------------.
    usefull economic life or the legal life
  52. Under IFRS the development cost may be capitalized if all the following critria are met
    • 1. technical feasibility has been established
    • 2. the comapny intends to completet the asset
    • 3. the company has the ability to sell or use the asset
    • 4. sufficient resources are available to complete the development and/ use the asset
    • 5. the asset will generate futrue economic benefits
  53. Under IFRS the development cost may be capitalized if all the following critria are met
    1. ---------------------------------------------
      2. the comapny intends to completet the asset
    3. the company has the ability to sell or use the asset
    4. sufficient resources are available to complete the development and/ use the asset
    5. the asset will generate futrue economic benefits
    technical feasibility has been established
  54. Under IFRS the development cost may be capitalized if all the following critria are met
    1. technical feasibility has been established 
    2. ---------------------------------------------
    3. the company has the ability to sell or use the asset
    4. sufficient resources are available to complete the development and/ use the asset
    5. the asset will generate futrue economic benefits
    the comapny intends to completet the asset
  55. Under IFRS the development cost may be capitalized if all the following critria are met
    1. technical feasibility has been established 
    2. the comapny intends to completet the asset
    3. ------------------------------------------------
    4. sufficient resources are available to complete the development and/ use the asset
    5. the asset will generate futrue economic benefits
    the company has the ability to sell or use the asset
  56. Under IFRS the development cost may be capitalized if all the following critria are met
    1. technical feasibility has been established
      2. the comapny intends to completet the asset
    3. the company has the ability to sell or use the asset
    4. ---------------------------------------------------------
    5. the asset will generate futrue economic benefits
    sufficient resources are available to complete the development and/ use the asset
  57. Under IFRS the development cost may be capitalized if all the following critria are met
    1. technical feasibility has been established 
    2. the comapny intends to completet the asset
    3. the company has the ability to sell or use the asset
    4. sufficient resources are available to complete the development and/ use the asset
    5. the asset will generate futrue economic benefits
    the asset will generate futrue economic benefits
  58. For the completed contract method, When are losses and profit recognized
    losses are recognized as soon as they occur, or are evident

    profit is not recognized until the project is complete 
  59. the cost recovery method is appropriate when there is ----------------------------------------------------------------------
    no reasonable basis for estimating collectibility
  60. T/F

    The cost recovery method is appropoiate when there is no reasonable basis for estimating collectibility 
    True
  61. Under the --------------------------------method revenue is recognized after cash eualing the cost of the item is collected.
    Cost recovery
  62. Under the ---------------------------------------------------------------method gross profit is recognized as a gross profit percentage times the cash collected from the sale
    installment
  63. US GAAP

    In order for a transaction to have commercial substance either (1) the risk, timing, and amount of the ------------------------------------ from the asset transferred diffes significantly from the risk, timing, and the amount of the expected future cash flows from the -------------------------, or (2) the entity - specific value of the asset recieved differs significantly from the asset transferred.
    expected future cash flows / asset received
  64. When a non monetary transaction has commercial substance, gains and losses are recognized based on the difference between the --------------------------------- and the -----------------------------------  of the asset given up
    fair value / book value
  65. under the rule of conservatism losses are recognized in all nonmonetary exchanges when the ----------------------------------------- exceeds the ------------------------------- of the asset given up.
    book value / fair value
  66. Under IFRS excahnges of ------------------------------- are regarded as exchanges that generate revenue and all gains and losses are recognized
    dissimilar assets
  67. Under IFRS exchanges of dissimilar assets are regarded as exchanges that generate revenue and all ---------------- and ------------------are recognized
    gains / losses
  68. Under ---------------------------------------------------------------------------- specific price indexes may be used to restate financial statements items
    current cost accounting
  69. during a period of inflation holding a monetary liability would result in a purchasing power -----------------
    gain
  70. Current cost amounts of inventory and property palnt and equipment are measured at ------------------------------- or --------------------------------- at the measurement date
    current cost / lower recoverable amount
  71. The functional currency of a company may be ---- 
    • 1. a foreign entitys local currency which is typically the one in which the entity keeps its books
    • 2. the currency in which the financial statements will be presented which is the currency of the parent company
    • 3. a foreign currency other than the one in which the foreign entity maintains its books  
  72. Gains an losses resluting from foreign transactions that are an extension of hte parents domestic operations are included as a component of -------------------------------------------------------------------------------- in the period in which they occur
    income from continueing operations
  73. A cumulative foreign exchange translation loss woudl be a debit to accumulated other comprehensive income therefore -----------------------------------------------
    contra to shareholder equity
  74. a cumulative foreign exchange translation loss would be a debit to --------------------------------------------------- therefore contra to shareholder equity
    accumulated other comprehensive income
  75. a subsidiarys financial statements are usually maintained in its --------------------------------
    local currency
  76. a subsidiarys financial statements are ususally maintained in its local currency.  If the subsidaiarys functional currency is its local currency the subsidiarys financial statements are simply translatd to the reporting currency.  The resulting adjustment is reported as -------------------------------------------------------------. 
    other comprehensive income
  77. a subsidiarys financial statements are ususally maintained in its local currency.  If the subsidaiarys functional currency is its local currency the subsidiarys financial statements are simply ---------------------- to the reporting currency.  The resulting adjustment is reported as other comprehensive income. 
    translated
  78. if a subsidiary s functional curreny is not the same as its local currency the subsidiary financial statemetns must be remeasured into the functinal currency.   The resulting gain or loss on remeasurement is reproted in the ---------------------------------------------.
    consolidated income statement
  79. if a subsidiary s functional curreny is not the same as its local currency the subsidiary financial statemetns must be -----------------------------------------------------.   The resulting gain or loss on remeasurement is reproted in the colsolidated income statement
    remeasured into the function currency
  80. Conversion adjustments associated wiht remeasurement of financial statements is displayed in---------------------------------------------------------
    income
  81. Conversin adjustments associated with translation of financial statements are displayed in ----------------------------------------------------------
    accumulated other complrehensive income
  82. in financial statements prepared on the ----------------------, the nondeductable portion of expenses should be included in the expense category in the determination of income.
    income tax basis
  83. in financial statements prepared on the income tax basis, the -------------------------------- should be included in the expense category in the determination of income.
    nondeductable portion of expenses
  84. in financial statements prepared on the income tax basis, the nondeductable portion of expenses should be included in the ------------------ category in the determination of income.
    expense
  85. On a personal statement of financial condition, estimated income taxes equals the diffeence between ---------------- and tax bases of assets and liabilites
    fair values
  86. On a personal statement of financial condition, estimated income taxes equals the diffeence between fair values and -----------------------------------
    tax bases of assets and liabilites
  87. on personnal financial statements all items are reported at their ---------------------------
    fair market values
  88. Personnal financial statements usually include a -------------------------------- and a statement of changes in net worth
    statement of financial condition
  89. Personnal financial statements usually include a statement of financial condition and a ----------------------------------------------------
    statement of changes in net worth
  90. a busienss interest that constitutes a large part of an individuals total assets should be presented in a ---------------------------------------- as a single amount equal to the estimated current value of the business interest
    personal statement of financial condition
  91. a busienss interest that constitutes a large part of an individuals total assets should be presented in a personal statement of financial condition as a single amount equal to the ------------------------------------------------------
    estimated current value of the business inerest
  92. pesonal financial statements should report assets and liabilites at estimated current values at the ---------------------------------------------------
    date of the financial statements
  93. pesonal financial statements should report assets and liabilites at ----------------------------- at the date of the financial statements
    estimated current values
  94. pesonal financial statements should report --------------------------------- at estimated current values at the date of the financial statements
    assets and liabilites
  95. In all nonmonetary transaction the fair value given is -------- to the fair value recieved.   
    Equal
  96. When fixed asset is sold, gain or loss is recognized as part of ----------------------------------------------.  The amount of the gain or loss is equal to the difference between the procedds from the sale and the carrying amount of the fixed asset sold or converted
    income from continueing operations
  97. When fixed asset is sold, gain or loss is recognized as part of income from continueing operations.  The amount of the gain or loss is -------------------------- between the procedds from the sale and the carrying amount of the fixed asset sold or converted
    equal to the difference
  98. gains or losses on fixed assets are always recognized during the ------------------------ based on recorded amount plus any costs associated with the transaction
    period incurred
  99. gains or losses on fixed assets are always recognized during the period incurred based on recorded amount plus any ------------------------------------
    costs associated with the transaction
  100. When a fixed asset is sold gain or loss is recognized as part of ----------------------------------------------
    income from continueing operations
  101. Research and development costs are expensed as incurred under US GAAP except if for
    • 1. costs to be reimbused by another company
    • 2. Costs for a long lived tangible asset with alternate uses 
  102. An amount of defeered gross profit relating to installment AR collections 12 months beyonds the balance sheet date should be reported in the  -------------------------------- as a contra account
    current asset section
  103. An amount of defeered gross profit relating to installment AR collections 12 months beyonds the balance sheet date should be reported in the  current asset section as a ------------------------------------
    contra account
  104. Royalties received should be reported as revenue in the -----------------------------
    period earned
  105. Current cost financial statements report holding gains for ----------------- sold during the period and holding gains on -------------- at the end of the period.  They also include holding gains and losses on all other accounts in the financial statements.
    goods / inventory
  106. ----------------------------------report holding gains for goods sold during the period and holding gains on inventory at the end of the period.  They also include holding gains and losses on all other accounts in the financial statements.
    Current cost financial statements
  107. Holding net monetary assets during inflation will result in a -----------------------------------
    loss of purchasing power
  108. Holding net monetary assets during --------------------- will result in a loss of purchasing power
    inflation
  109. Holding net -------------------------- during inflation will result in a loss of purchasing power
    monetary assets
  110. A company that wishes to disclose informaiton about the effect of changeing prices should report this informaiton in --------------------------------------------------------------
    supplementary informantion to the financial statements
  111. A company that wishes to disclose informaiton about the effect of -----------------------should report this informaiton in supplementary informaiton to the financial statements
    changeing prices
  112. a translation loss from a wholly owned foreign subsidiary is not included in -------------------- as it does not impact cash flows.  It would be included in other comprehensive income in -------------------------------.
    net income / shareholders equity
  113. a translation loss from a wholly owned foreign subsidiary is not included in net income as it does not impact -----------------.  It would be included in other comprehensive income in shareholders equity.
    cash flows
  114. a translation loss from a wholly owned foreign subsidiary is not included in net income as it does not impact cash flows.  It would be included in other ---------------------------------------------- in shareholders equity.
    other comprehensive income
  115. If an entitys books are not maintained in its functional currency, remeasurement into the functinal currency is required.  Any gains or losses are included in determining net income and are classified as part of ---------------------------------------.
    continueing operations
  116. If an entitys books are not maintained in its functional currency, ---------------------------------------------- is required.  Any gains or losses are included in determining net income and are classified as part of continueing operations.
    remeasurement into the functinal currency
  117. If an entitys books are not maintained in its functional currency, remeasurement into the functinal currency is required.  Any ----------------------------- are included in determining net income and are classified as part of continueing operations.
    gains or losses
  118. If an entitys books are not maintained in its ---------------------------------------, remeasurement into the ------------------------------------- is required.  Any gains or losses are included in determining net income and are classified as part of continueing operations.
    functional currency / functional currency
  119. a gian or loss from a forward exchange contract for speculation is equal to the difference in the----------------------------------------------------- and the forward rate at the BS date
    forward rate at the date  the contract is purchased
  120. a gian or loss from a --------------------------------- for speculation is equal to the difference in the forward rate at the date the contract is purchased and the forward rate at the BS date
    forward exchange contract

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