Becker CPA Review
Financial
FINANCIAL TABLE OF CONTENTS
TOPIC 1: REVENUE RECOGNITION and ACCOUNTING CHANGE
1.
Presentation order of the major components of an income and retained earnings
................................................................ .........................................................................................
1-3
2.
Comprehensive Income ........................ .........................................................................................
1-4
3.
Revenue Recognition Principle ........... ...........................................................................................
1-4
4.
Completed Contract Method .... ......................................................................................................
1-4
5.
Percentage of Completion Method . ................................................................................................
1-5
6.
Installment Sales Method ............... ................................................................................................
1-6
7.
Cost Recovery Method ................... ................................................................................................
1-6
8.
Franchises ........................................... ...........................................................................................
1-6
9.
Classification and Approaches ........... ...........................................................................................
1-6
10. Changes in Accounting Estimate ........ ...........................................................................................
1-7
11. Changes in Accounting Principle ......... ...........................................................................................
1-7
12. Changes in Accounting Entity ............. ...........................................................................................
1-8
13. Error Corrections ......................................................... ...................................................................
1-9
14. Summary of Accounting Changes and Necessary Treatments
.............................................................. ........................................................................................... 1-10
15. Multiple Choice (1-9) ............................................................................................................... .........
1-11
16. Task-Based Simulation (1-4) . .......................................................................................................... 1-16
TOPIC 2: SEGMENT REPORTING
1.
Segment Reporting
..................... ................................................................................................
2-3
2.
Notes to Financial Statements ....... ................................................................................................
2-3
3.
SEC reporting requirements ................ ...........................................................................................
2-4
4.
Fair Value Measurements ................... ...........................................................................................
2-5
5.
Subsequent Events ........................ ................................................................................................
2-6
TOPIC 3: ACCOUNTS RECEIVABLE
1.
Accounts Receivable ......................... .............................................................................................
3-3
2.
Perpetual and Periodic Concepts ......................................................................................................
3-5
3.
Inventory Valuation Methods .... ......................................................................................................
3-6
4.
Inventory Costing Methods ............. ................................................................................................
3-6
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Financial
Becker CPA Review
5.
Dollar-Value LIFO ........................... ................................................................................................
3-8
6.
Gross Profit Method ....................... ................................................................................................
3-8
7.
Conventional Retail Method ........... ................................................................................................
3-8
8.
Non-Monetary Exchange
3-9
9.
General Concepts .......................... ................................................................................................ 3-10
............. ................................................................................................
10. Reporting Fixed Assets .................. ................................................................................................ 3-10
11. Investment Property (IFRS) ................. ...........................................................................................
3-11
12. Interest on Self-Constructed Assets .... ........................................................................................... 3-11
13. Depreciation
................................ ................................................................................................
3-11
14. Impairment of Fixed Assets ............ ................................................................................................ 3-13
15. Intangible Assets ............................ ................................................................................................
3-14
16. Research and Development ........... ................................................................................................ 3-15
17. Computer Software ............................. ...........................................................................................
3-15
18. Imputing Interest ................................. ........................................................................................... 3-16
19. Multiple Choice (1-7)
.................... ................................................................................................
3-19
20. Task-Based Simulation (1-2) . .......................................................................................................... 3-24
TOPIC 4: TRADING SECURITIES
1.
Financial Instrument
.................... ................................................................................................
4-3
2.
Trading Securities .................... ......................................................................................................
4-4
3.
Available-for –Sale Securities .. ......................................................................................................
4-5
4.
Held-to-Maturity Securities ............. ................................................................................................
4-5
5.
Realized Gains and Losses ............ ................................................................................................
4-5
6.
Summary of Marketable Security Investments..................................................................................... 4-6
7.
Cost Method
................................ ................................................................................................
4-7
8.
Equity Method ................................ ................................................................................................
4-8
9.
Consolidation ................................. ................................................................................................
4-8
10. Multiple Choice (1-15)
.................. ................................................................................................ 4-15
11. Task-Based Simulation (1-3) . .......................................................................................................... 4-26
TOPIC 5: BONDS
1.
Bonds Terminology
..................... ................................................................................................
5-3
2.
Issuance of Bonds .......................... ................................................................................................
5-3
3.
Issuance of Bonds Between Interest Dates......................................................................................... 5-4
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Becker CPA Review
Financial
4.
Amortization of Premiums and Discounts ........................................................................................... 5-4
5.
Convertible Bonds ............................... ...........................................................................................
5-6
6.
Bonds with Detachable Warrants
................................................................................................
5-7
7.
Retirement of Bonds ....................... ................................................................................................
5-7
8.
Asset Retirement Obligations .............. ...........................................................................................
5-8
9.
Troubled Debt Restructuring ............... ...........................................................................................
5-8
10. Contingencies ................................ ................................................................................................
5-9
11. Multiple Choice (1-5)
.................... ................................................................................................
5-11
1.
Accounting for Income Taxes .... ......................................................................................................
6-3
2.
Operating Leases ..................... ......................................................................................................
6-7
3.
Capital（Finance）Leases ...... ......................................................................................................
6-7
4.
Criteria for Capital（Finance ）Lease Accounting -Lessee................................................................. 6-7
5.
Criteria for Capital（Finance ）Lease Accounting -Lessor.................................................................. 6-10
6.
Sale- Leaseback ...................... ...................................................................................................... 6-10
7.
Foreign Currency Accounting .............. ........................................................................................... 6-12
8.
Multiple Choice (1-6)
9.
Task-Based Simulation (1-7) . .......................................................................................................... 6-20
TOPIC 6: LEASES
.................... ................................................................................................ 6-15
TOPIC 7:PENSIONS
1.
Pension Plans
............................. ................................................................................................
7-3
2.
Pension Obligations Defined Benefit Pension Plans .......................................................................
7-3
3.
Pension Plan Funded Status ............ ................................................................................................
7-4
4.
Reporting Change in Funded Status .... ...........................................................................................
7-5
5.
Pension Plans Contributions ............... ...........................................................................................
7-6
6.
Pension Expense Components
.. ................................................................................................
7-7
7.
Accounting for Postretirement Benefits Other Than Pensions .......................................................
7-8
8.
Stockholders’ Equity ................... ......................................................................................................
7-8
9.
Treasury Stock ........................ ......................................................................................................
7-9
10. Dividends, Stock Dividends, and Stock Splits ................................................................................
7-11
11. Retained Earnings ............................... ........................................................................................... 7-13
12. Stock Options
............................. ................................................................................................
7-13
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Financial
13. Multiple Choice (1-8)
14.
Becker CPA Review
.................... ................................................................................................ 7-15
Task-Based Simulation (1-4) .......................................................................................................... 7-22
TOPIC 8:CASH FLOWS
1.
Methods of Presentation ................................................................................................................
8-3
2.
Operating Activities -Indirect Method ..............................................................................................
8-3
3.
Operating Activities -Direct Method ................................................................................................
8-4
4.
Investing Activities ..........................................................................................................................
8-4
5.
Financing Activities ........................................................................................................................
8-4
6.
Non-Cash Investing and Financing Activities .................................................................................
8-4
7.
Cash Equivalents ...........................................................................................................................
8-5
8.
IFRS VS U.S.GAAP .......................................................................................................................
8-5
9.
Additional Supplemental Disclosures .............................................................................................
8-5
10. Earnings Per Share ........................................................................................................................
8-8
11. Multiple Choice (1-2) ......................................................................................................................
8-11
12 Task-Based Simulation (1-4) . .......................................................................................................... 8-16
TOPIC 9: GOVERNMENTAL ACCOUNTING
1.
Fund Structure ................................................................................................................................
8-3
2.
Fund Accounting – Measurement Focus .........................................................................................
8-7
3.
Fund Accounting – Basis of Accounting ...........................................................................................
8-9
4.
Deferred Outflows and Inflows of Resources....................................................................................... 8-10
5.
Governmental Fund Accounting – Journal Entries ........................................................................... 8-14
6.
GASB #34 Model – Overview ...................................... ................................................................... 8-21
7.
GASB #34 Model – Government-Wide Financial Statements ............................................................. 8-21
8.
GASB #34 Model – Fund Financial Statements .................................................................................. 8-22
Financial Statements Samples.................................................................................. .......................
9.
8-26
Financial Reporting Entity ............................................................................................................... 8-33
10. Interfund Activity .............................................................................................................................. 8-34
11. Multiple Choice (1-13) ............................................................................................................... .......
8-36
12. Task-Based Simulation (1-14) .......................................................................................................... 8-46
TOPIC 9: NOT-FOR-PROFIT ACCOUNTING
1.
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Required Financial Statements
......................................................................................................
9-3
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Becker CPA Review
Financial
2.
Net Asset Classification . .................................................................................................................
9-3
3.
Revenue and Support Recognition
................................................................................................
9-4
4.
Pass-Through Contributions To Non-Profit Beneficiary ..................................................................
9-7
5.
Reclassification ............... ...............................................................................................................
9-8
6.
Expense Classification and Display
...............................................................................................
9-8
7.
Accounting for Marketable Securities .............................................................................................
9-9
8.
Statement of Cash Flows
9-9
9.
Industry Applications ...................................................................................................................... 9-10
...............................................................................................................
Financial Statements Samples.................................................................................. .......................
9-11
10. Multiple Choice (1-5) ................................................................................................................ ........
9-14
11. Task-Based Simulation (1-11) ................ .......................................................................................... 9-18
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Financial
Becker CPA Review
Simulations
1.
Simulation1 (2016 AICPA Release) .............................................................................................. S1-1
2.
Simulation2 (2015 AICPA Release) .............................................................................................. S2-1
3.
Simulation3 (2014 AICPA Release) ................................................................................................ S3-1
4.
Simulation4 (2013 AICPA Release) ................................................................................................ S4-1
5.
Simulation5 (2012 AICPA Release) ................................................................................................. S5-1
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© 2013 DeVry/Becker Educational Development Corp. All rights reserved.