Exam Cheat Sheet

Only available on StudyMode
  • Download(s) : 35
  • Published : July 8, 2013
Open Document
Text Preview
|B.P. Bond Payable |PIC Paid In Capital.|
|C.S. Common Stock |APIC Additional PIC |
|CSE Common SE |PMR Profit Margin |
|EOF End of |Ratio |
|Financing (Period) |PV Present Value |
|FV Future Value |R.E. Retained |
|IE Interest Expense|Earnings |
|I.S. Income |S.H. ShareHolder |
|Statement |S.E. ShareHolder |
|FS Financial |Equity |
|Statements |SYD Sum of the |
|LCM Lower Cost & |Years’ Digits |
|Market |TA Total Assets |
|M.S. Marketable |TATR Total Asset |
|Securities |Turnover Ratio |
|N.I. Net Income |XA Uncollectable |
| |Accounts |
| |~A Contra-Asset |
| |(negative) |
| |$ CASH |

Balance sheet

|Assets |Liabilities |
|Current Assets |Current Liabilities |
|Cash |Payable (Account, |
|Marketable |Note,Interest, |
|Securities/Stocks |Salaries, Income |
|Short Term |Tax) |
|Investment |Adv. from Customer |
|Receivables (Acct, |(Deferr. Rev) |
|note, interest) |Rent Received In |
|Inventories |Advance |
|Advances To |Non-Current |
|Supplier |Liabilities |
|Prepaid Insurance, |Bonds Payable |
|Rent |Mortgage Payable |
| |Deferred Income |
|Non Current Assets |Taxes |
|Investment In |Other (Provisions) |
|Securities |Shareholders' Equity|
|Land, Buildings & |Common Stock |
|Equip(PP&E) |Preferred Stock |
|Accumulative Depr |Additional Paid In |
|(~A) |Capital (GAAP) |
|Leasehold |Retained Earnings |
|Patent (Only If |(Indirect) |
|Purchased) |Treasury Shares |
|Goodwill (Only If |O.C.Income (clean |
|Purchased) |surplus acc.) |

Assets Recognition: Firm has acquired rights to use in the future as a result of a transaction ( Future benefits are measurable or quantifiable

Assets Valuation: Monetary Assets at NPV ( Non-Monetary Assets at Acquisition cost (part adjusted for depreciation) ( Write-off if the asset is permanently impaired

Liability Recognition: present obligation arising from past event that will result in future outflow of economic benefits ( when is probable & and can be reliably measured

Liability Valuation: Monetary Assets at NPV ( Non-monetary est. cost of providing service / fulfilling obligation

Equity: Contributed Capital (Par value iof shares & Add. Paid in Capital) + Retained Earnings (Beginning Ret. Ern. + Net income – Dividends)

Revenue recognition: Firm has earned (performed all or most of the service) and cash collection is reasonably assured. Cash net of uncollectable acc, sales disc, allowances..

Expense recognition: Expenses are ‘expired costs’. 1. if asset exp is associated with revenue – recogn exp in same period. 2. if asset is not clearly associated with revenue, is expens in period where firm consumes benefits of assets

Liquid Assets

Cash ( Marketable Securities: Investment of current cash excess,convertible to cash and Firm intend to convert them within a year

Accounts receivable – JE 52-55 (net of provisions for unpayments ~A)

Fixed Assets(PP&E)

Acquisition cost - Include all relevant charges

Self-construct - Capitalise interest during construction

Depreciation - Allocates cost of assets to periods of use

Land - Do not depreciate. Can be adjusted to market value under IFRS

Buildings - Salvage = 0

Changes in Depreciation: Spread remaining undepreciated balance less new salvage value over new remaining life

Repair & Maintenance: Expense

Improvement: Capitalise &...
tracking img