Financial Reporting 1
what are the 3 main ways to value inventory
LIFO, FIFO, weighted-average
These permanent differences can be fully expensed for book purposes but only 50% for tax purposes. In other years, they have been 100% deductible and 0% deductible.
What are meals?
what are the 3 main depreciation methods
straight line, double declining, units-based
5 components of the COSO framework (CRIME)
Control environment, risk assessment, information & communication, monitoring, control activities
the US has what type of income tax system
progressive
what are the three types of equity securities
AFS, HTM, Trading
Interest from what creates a permanent b/t difference
muni bonds
what is the journal entry for this situation: you receive 40,000 from the sale a truck that you bought 6 years ago for 95,000. This truck has a useful life of 15 years and a salvage value of 5,000.
Cash 40,000
A/D 36,000
Loss 19,000
Truck 95,000
you are likely to perform this audit procedure when auditing cash
a bank reconciliation
If a taxpayer is MFJ and has AGI of $355,000, has two qualifying children and one non-child dependent, how much can they claim of the CTC?
$4,500
The most common reason a company must book a valuation allowance against a DTA
NOLs will not be used up
What % of life insurance premiums can i expense for the ceo of my company?
0%
If historical cost of inventory is 200, net realizable value is 300, current replacement cost is 220 and a normal profit margin is 60, how much (if at all) should i write down inventory per LCM
none
For public companies, you must issue this along with the audit report
what is an audit of internal controls
can anyone put money into a ROTH IRA?
yes, via backdoor method.
What is the journal entry to reinstate a previously written off accounts receivable?
debit ar
credit allowance for bad debts
MACRS depreciation is faster than straight line depreciation. This produces a ...
DTL
What accounts are affected if you sell treasury stock for less than you purchased it for (assuming the only balance in your TS account is the TS you are selling)
Treasury Stock, Retained Earnings
when confirming accounts payable, you should look at which types of accounts?
accounts with small or zero balances, particularly those with a history of significant activity
why are NOL carryforwards important? (think about two firms, one with NOL, one without)
they help firms with the same income over a span of years have the same ETR
What are the 7 parts of accounting for pensions?
1. service costs
2. prior service costs
3. interest on PBO
4. Return on plan assets
5.Current year gains/losses
6. funding the plan
7. payments to retirees
If i pay bonuses to employees and expense this as salaries expense in year 1, what is the last date i can pay them and still receive the tax deduction for that same year (resulting in no b/t difference)
march 15, (2.5 months after year end)
If Group 2 criteria is met but group 1 criteria is not, what type of lease is it from the lessor pov?
direct financing
The inherent risk that accounts payable may be omitted or otherwise understated typically is
high
These types of taxes are thought to be regressive
excise tax