CPA Exam - FAR – Acronyms questions
and answers
Income Statement/Net Income
REGL - AnswerRevenues - Gross
Expenses - Gross
Gains - Net
Losses - Net
Other Comprehensive Income
PUFI - AnswerPension Adjustments (gains and losses from defined benefit pension plan)
Unrealized gains and losses on available for sale securities and hedges
Foreign Currency Translation
Instrument-Specific Credit Risk
Revenue Recognition
I am a STAR - AnswerIdentify the contract with the customer
identify the Separate Performance Obligations
determine the Transaction Price
Allocate the transaction price to each separate PO
Recognized revenue when or as each PO is satisfied
Fair Value Valuation Techniques
MIC - AnswerMarket Approach - identical market translations (A&L)
Income Approach - future earns -> discounted amount (A&L)
Cost Approach - replacement (L only)
Bank Reconciliations
DO BINS - AnswerDeposits in Transit - add to bank
Outstanding Checks - deduct from bank
, Bank Collections - add to book
Interest Income - add to book
Non sufficient funds - deduct from book
Service charge - deduct from book
PP&E Capitalization
AIR - AnswerAdditions
Improvements
Replacements
Depletion on Land
REAL - AnswerResidual Value (deduct)
Extraction Cost
Anticipated restoration cost
Land Price
Vacation Accruals
SOCR - AnswerService already rendered by EE
Obligation - rights to vest or accumulate\
Compensation is probable
Reasonably estimated amount
Loss is Remote Exceptions
DOG - AnswerDebts of others guaranteed
Obligations of commercial banks under standby letters of credit
Guarantees to repurchase receivables
Finance Lease
OWNES - AnswerOwnership transfer to lessee at the end of the term
Written purchase option (lessee reasonably certain to exercise)
Net Present Value > 90% fair value of asset
and answers
Income Statement/Net Income
REGL - AnswerRevenues - Gross
Expenses - Gross
Gains - Net
Losses - Net
Other Comprehensive Income
PUFI - AnswerPension Adjustments (gains and losses from defined benefit pension plan)
Unrealized gains and losses on available for sale securities and hedges
Foreign Currency Translation
Instrument-Specific Credit Risk
Revenue Recognition
I am a STAR - AnswerIdentify the contract with the customer
identify the Separate Performance Obligations
determine the Transaction Price
Allocate the transaction price to each separate PO
Recognized revenue when or as each PO is satisfied
Fair Value Valuation Techniques
MIC - AnswerMarket Approach - identical market translations (A&L)
Income Approach - future earns -> discounted amount (A&L)
Cost Approach - replacement (L only)
Bank Reconciliations
DO BINS - AnswerDeposits in Transit - add to bank
Outstanding Checks - deduct from bank
, Bank Collections - add to book
Interest Income - add to book
Non sufficient funds - deduct from book
Service charge - deduct from book
PP&E Capitalization
AIR - AnswerAdditions
Improvements
Replacements
Depletion on Land
REAL - AnswerResidual Value (deduct)
Extraction Cost
Anticipated restoration cost
Land Price
Vacation Accruals
SOCR - AnswerService already rendered by EE
Obligation - rights to vest or accumulate\
Compensation is probable
Reasonably estimated amount
Loss is Remote Exceptions
DOG - AnswerDebts of others guaranteed
Obligations of commercial banks under standby letters of credit
Guarantees to repurchase receivables
Finance Lease
OWNES - AnswerOwnership transfer to lessee at the end of the term
Written purchase option (lessee reasonably certain to exercise)
Net Present Value > 90% fair value of asset
