AE 13-1 What is a liability? How is it defined?
AE 13-2 Identify and explain the three characteristics of a liability.
AE 13-3 What is a current liability? How is it defined?
AE 13-4 What is an operating cycle anyway?
AE 13-5 Cu
Accounting for Stock Based Compensation
When the FASB issued its guidance on accounting for stock-based compensation (share-based
payment arrangements), it basically required companies1 that issue stock options to employees
Uncertain Tax Positions (from Accounting Standards Codification)
Under the recognition criteria for an uncertain tax position, a company will recognize the
financial statement effects of a tax position when it is more likely than not, based on the technic
Accrued Property Taxes. 1
County and other local governments often depend on property taxes as their primary source of
revenues. Such taxes are based on the assessed value of property and become a lien (liability)
against the pr
Suggestions for ReviewChapter 13
Definition of liability and characteristics
Definition of current liability
Accounting for interest bearing and noninterest bearing short-term notes
Accounting for variou
Dilutive Securities and Earnings Per Share
Suggestions for Review Chapter 16
Understand Accounting for Stock Based Compensation
Understanding Earnings Per Share (EPS):
Computing basic EPS.
Computing diluted EPS.
Being able t
Suggestions for Review Chapter 15
Rights and terms that apply to capital stock.
Characteristics of the corporate form of organization.
Common characteristics of preferred stock.
Components of contributed
Suggestions for Review
Understand the full disclosure principle
Segment of business reporting
Short Answer Questions
1. What is the full disclosure principle?
2. What is included in the accou
Suggestions for Review
The conceptual basis for deferred tax accounting
Understanding the distinction between permanent and temporary differences.
Being able to identify taxable or deductible temp
Accounting for Post Employment Benefits
Suggestions for Review
The characteristics of pension plans and related laws
Defined benefit versus defined contribution
Conceptual issues regarding pension
General Approach to Reconciling Financial and Taxable Income
Financial Statement Income Before Tax
Add: nondeductible expenses:
Nontaxable income &Tax not book expenses
Taxable Income before Temporary Differences _
Added Material- Shareholders Equity
Receivables for the Issuance of Equity 1
Most of the time stock is sold for cash, but stock can also be sold on credit, that is, on what is called a
subscription basis. When stock is sold on a subscription ba
Stock Compensation-Equity Awards1
Number of Options
Grant date fair value of options2
Figure out number of options
(# employees x # options or it may be given in total or for each employee)
2. Figure out how m
AE 24-1 Which of the following should be disclosed in a Summary of Significant Accounting
a) Reconciliation of the companys effective tax rate to the statutory tax rate.
b) Inventory cost flow assumption used.
AE 16-1 Employee Stock Plans. What are the criteria for employee stock purchase plans to be
AE 16-2. Compensatory Stock Option Plan. SEE ADDED MATERIAL CHAPTER 16
Mary Tokar Company has 20 executives to whom it
AE 22-1 The FASB has identified three types of accounting changes. What are they and give an
example of each?
AE 22-2 What is a change accounting principle and how is it accounted for? Give some
AE 22-3 At the beginnin
AE 19-1 What are the differences in objectives between financial reporting and the Internal
AE 19-2 What is interperiod tax allocation versus intraperiod tax allocation? (See Kieso pages 177
-178 for intraperiod ta
AE 20-1 What is a pension plan? Is the pension plan for the employees a separate entity from
the company itself?
AE 20-2 Which of the following is not a component of pension expense for a defined benefit
a. service cost.
AE 14.1 What do following terms related to bonds mean? Face value or principal amount,
contract or coupon rate, maturity date, and bond indenture.
AE 14.2 Bond Issuance On January 1, 2012, Sattler Co., issues $300,000 of 10% bon
AE 15-1 Equity Components.What are the major components/categories of stockholders
equity and explain what each represents?
AE 15-2 Additional Paid in Capital Bertram Corporation was organized in January 2012 with
100,000 of $1
The computation of earnings per share can be fairly complex. This covers some of the basic
Compute Numerator - Net Income Available to Common1
Net Income reduced by preferred dividends, if declared (whether or not paid) and i
Starting PointFinancial Statement Pretax Income
Common Permanent Differences
Taxable but not book expenses
-special dividends deduction
-Officers life insurance premiums
AE 23-1 Identify the the two methods that can be used to report cash flows from operating
activities and explain each method.
AE 23-2 Hernandez Company sold equipment for $18,000 cash. The equipment had originally
cost $80,000 an