Exam (elaborations)
CPA FAR Becker F8 F9 F10 Questions & Detailed Answers
- Course
- CPA
- Institution
- University Of Texas - Austin
CPA FAR Becker F8 F9 F10 Questions & Detailed Answers
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CPA FAR Becker F8 F9 F10 Questions & DetailedAnswers
Basic EPS - ANS = (NI - pref divs) / (WACSO)
WACSO - ANS = beg shares outstanding + sold x # months/12 - reacq x
#shares/month + stock div/split - rev split(as if beg of year)
Diluted EPS - options and warrants - ANS = NC to numerator
/ # new CS X (#shares x exer price) / avg price)
dilutive only if avg price > exercise price
Diluted EPS - convertible bonds - ANS = + int expense (1- %)
/ # new CS
compare to basic, if new diluted < basic = dilutive
Diluted EPs - convertible PS - ANS = + pref div (as if pref div were never there) (aka
NI - pref div + pref div)
/ # new CS
compare to basic if new diluted < basic, dilutive
,CFO - ANS cash receipts and disbursements related to current A and L (beside
current NP and LTD -> financing)
CFI - ANS cash receipts and disbursements from non current assets
all sums lent and/or repaid
purchase and sale of non current assets
buy -> cash down
sell -> cash up
CFF - ANS cash receipts and disbursements for non current liabilities and equity
all sums borrowed or repaid
issuance and/or repurchase of own company stock
dividends paid
issue -> cash up
repay/purchase -> cash down
Direct Method CFO - ANS converts each operating cash flow to cash basis
, basically did cash go in or out? + if in - if out
cash received from customers
cash paid to suppliers and employees
int rec and paid
dividends rec
purchase and sale of trading securities
income taxes paid
Indirect Method CFO - ANS starts with accrual basis net income and adjusts for
items reported that didnt affect cash
NI + div + GW impair + loss - gain (inc or dec in CA-> opposite inc or dec in CL ->
same)
IFRS differences cash flow - ANS int rec/paid and div rec/paid and taxes paid can be
CFO or rec CFI paid CFF -> if in "bank business" CFO all others I or F
NFP - ANS full accrual
revenues = contributions
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