Term
| What are Foreign Currency Transactions? |
|
Definition
| Import or export transactions denominated in a foreign currency |
|
|
Term
| What are Foreign Currency Translation/Remeasurements? |
|
Definition
| Occurs when branch or subsidiary located in a foreign country |
|
|
Term
| When accounting for FC transactions: The porchase/sale recorded at spot rate on.... |
|
Definition
| the date of the transaction |
|
|
Term
| Accounting for FC Transactions: Changes in exchange rate from date of transaction to cash settlement date result in... |
|
Definition
|
|
Term
| Accounting for FC Transactions: Transaction Gains and losses are... |
|
Definition
| Included in current earnings |
|
|
Term
| Accounting for FC Transactions: Financial statement date occurs between transaction date and cash settlement date... |
|
Definition
| FC payable/receivable updated to current spot rate with gain or loss reported in current earnings |
|
|
Term
|
Definition
| currency where foreign business is located |
|
|
Term
| Functional Currency is... |
|
Definition
| Currency where most transactions occur |
|
|
Term
|
Definition
| Currency where reporting entity is located |
|
|
Term
| If recording currency and functional currency differ... |
|
Definition
| Remeasure. Remeasurement gain/loss included in net income. |
|
|
Term
| If functional currency and reporting currency differ... |
|
Definition
| Translate. Translation gain/loss included in OCI |
|
|
Term
Translation Rules...
All assets and liabilities at:
Contributed Capital at:
Revenues at:
Expenses at:
Dividends at: |
|
Definition
A&L at current rate...spot rate at B/S date
CC at historic rate...when stock was issued
Revenues at average rate for year..if earned evenly over yr
Expenses at average rate for year...if incurred evenly over yr
Dividends at historical rate...when dividend is distributed |
|
|
Term
| How to calculate retained earnings for translations: |
|
Definition
Beginning Translated RE
+ Translated Net Income
-Translated Dividends
Ending Translated Retained Earnings |
|
|
Term
| Translation gain/loss included in... |
|
Definition
|
|
Term
Remeasurement Rules:
Monetary Assets & Liabilities at:
Non-Monetary Assets & Liabilities at:
Contributed Capital at:
Rev & Exp associated with monetary A/L:
Rev & Exp associated with non-monetary A/L: |
|
Definition
Monetary A&L at current rate
Non-Monetary A&L at historical rate
CC at historical rate
Rev & Exp associated with monetary A/L at average for yr
Rev & Exp for non-monetary A&L at historical rate |
|
|
Term
| Retained Earnings for Remeasurement: |
|
Definition
Beginning Remeasurement RE
+ Remeasured Net income
-Remeasured Dividends
Ending remeasured retained earnings |
|
|
Term
| Remeasurement gain/loss included in... |
|
Definition
|
|
Term
|
Definition
| an association of two or more persons to carry on as co-owners a business for profit |
|
|
Term
| Partnership created by ____ that possesses all of the essential elements required of an enforceable contract |
|
Definition
|
|
Term
| Accounting issues relate to the measurement of the individual partners' |
|
Definition
|
|
Term
For partnerships, equity is an increase or decrease with:
Investments -
Withdrawals -
Profits -
Losses - |
|
Definition
Increase
Decrease
Increase
Decrease |
|
|
Term
| What is the only difference between a partnership balance sheet and a corporation's balance sheet? |
|
Definition
| Partnership's balance sheet has 'X' Capital account for each parther |
|
|
Term
| How are profits/losses distributed in partnership? |
|
Definition
| Can agree to distribute any way, if no agreement then usually distributed equally. If it includes agreement for profits, but no agreement on losses then distribute in the same manner as losses. |
|
|
Term
| Common allocation methods (3): |
|
Definition
Salary compensation
Bonus
Interest Compensation on capital balance |
|
|
Term
| T/F: Partners ARE employees and allocations are an expense of the partnership and don't impact net income. |
|
Definition
| False. Partners are NOT employees and allocations are NOT an expense of the partnership and do NOT impact net income. |
|
|
Term
Liquidation is:
What are the things involved? |
|
Definition
It is the process of winding up a business.
Conversion of assets to cash
Payment to creditors
Distribution of remaining cash to partners |
|
|
Term
| What are the two schedules to distribute available cash? Explain details behind the schedules |
|
Definition
1) Safe Cash - worst case scenario - schedule. Assume remaining assets are sold for nothing
Assume any partner resulting in deficit capital balance cannot pay into partnership.
2) Cash distribution schedule based on loss absorption power.
These two schedules will lead to identical cash distributions to the partners. Practical benefit of cash distribution schedule is that it only needs preparing once. |
|
|
Term
What would you value this partnership at?
Current Assets - $30,000
PP&E - $280,000
Liabilities $40,000
A Cap $20,000
B Cap - $40,000
C Cap - $90,000
D Cap - $120,000 |
|
Definition
A Cap: $20,000
B Cap: $40,000
C Cap: $90,000
D Cap: $120,000
Equals = $270,000 |
|
|
Term
| What constitutes as safe cash? |
|
Definition
| The current cash minus any remaining liabilities |
|
|
