Intermediate Accounting Exam 2 Review Chapter 4 Financial Statements Balance Sheet 1 On what SEC form s does a public company provide annual and quarterly financial statements 2 What are the uses and limitations of the balance sheet 3 What are the classifications on the balance sheet how are items organized i e what order 4 What is the definition of current assets and current liabilities 5 What is the definition of an asset a liability and equity 6 What is a contra account and what are some of the typical contra accounts listed on the balance sheet 7 What accounts fall into each classification on a balance sheet Chapter 3 Income statement and related information 8 What is the distinction between operating items and nonoperating items on the income statement and what are some examples 9 What are the typical items on the income statement how are items determined and organized i e sales COGS gross profit SG A income tax net income continuing operations discontinued operations noncontrolling interests 10 What are the differences between a single step and a multi step income statement 11 What is an intraperiod tax allocation and when why how is it used 12 What is the layout and organization of a multi step income statement 13 What is noncontrolling interest and how is it presented on the income statement 14 How do you calculate earnings per share 15 How do you account for changes in estimates changes in accounting principles and correction of errors 16 What is other comprehensive income comprehensive income accumulated other comprehensive income and how is it presented 17 How do you determine the balance of the equity accounts i e RE AOCI common stock Chapter 5 Statement of Cashflows Analysis 18 What is the purpose of the statement of cash flows 19 How is the statement of cash flows formatted What are the three sections reconciliation 20 How do you calculate cashflow from operations investing and financing activities 21 How do the different financial statements relate to each other 22 What is financial statement analysis 23 What is the most prevalent objective of financial statement analysis 24 What are some of the sources of noise in financial statements 25 Why is it critical to understand accounting to perform effective financial statement analysis Chapter 7 Revenue 26 At a broad level when can you recognize revenue 27 Know the 5 Step revenue recognition process 28 Be able to identify the characteristics of a valid invalid contract 29 Be able to identify performance obligations in a contract transaction price and allocate revenue type project 30 What contractual amount should be used as the transaction price i e what amounts are excluded from the transaction price 31 On what basis should the selling price be allocated to the performance obligations 32 What method do you use to measure revenue recognition over time for a typical construction 33 What factors must be considered when recognizing revenue for bill and hold transactions