Study Session 9: Financial Reporting and Analysis: Financial Reporting Quality and Financial Statement Analysis
- Is the Amortization of Bond Discount or Premium ever shown as a separate line items on the income statement?
- Or, It is always aggregated as the Interest Expense?
- If interest expense is ever show as two components: Coupon and Amortization can you give me a link to an example?
I stubmled with this question. I thought that under GAAP, if software development was not for sale the development cost had to be expensed. This question’s answer says the oposite. Can you help me?
Under US GAAP, what is the treatment of expenses incurred on the development of software that will be used for a company’s internal own purposes?
A) All costs are expensed until the technology’s feasibility is established.
B) All costs of this project are capitalized. (CORRECT ANSWER)
C) All costs of this project are expensed as incurred.
When practicing for FRA I encountered a question that included “Increase in Notes payable” as a Increase of CFO. I tought that notes payable was part of CFI not CFO.
Can you help me to understand?
Which of the following is recognized as an expense under defined contribution plan?
a) Actuarial g/l
b) Periodic contributions to the plan
c) Service costs incurred during the period
OA is B
Why is C) incorrect? Isn’t it that service costs go through income statement both under IFRS and GAAP?
I have a question and sorry if i am asking a dumb one. in level 1 it talks extensively about amortization, about how if a bond is issued at a premium for example, with every interest payment you receive the bond is amortizewd down to par.
So i’ve always thought all bonds amortizes. But i was speaking with a coworker today and he says no, amorziation is mainly for instruments that do paydowns like mortages/cmo.
Does anyone know a good site to see what a company’s 2014 Working Capital Turnover is? I tried to calculate it for Amazon. I am getting 36.44. I checked a few sites and see they are not using average working capital in the denominator; however, they are using 2014 Working Capital as the denominator. This results in ratio of 27.48. Any suggestions?
When is a company most likely to use debt financing?
I.) A high degree of business risk
II.) Little shielded taxable income
III.) When it seeks financial flexibility
IV.) When it has conservative management
The answer is II.
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