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Record investments
Assessment Strategies
Written Product and/or Exam
Criteria
Determine the proper classification for various types of investments
Record the purchase, realized income, and the unrealized gain or loss from transactions in trading securities
Record the purchase, realized income, and the unrealized gain or loss from transactions in securities available for sale
Record the purchase, the investor's share of invested's net income or loss, dividends received, and amortization of goodwill, and additional depreciation using the equity method
You meet a minimum of 70% on the exam
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Explain the classification of liabilities
Assessment Strategies
Written Product and/or Exam
Criteria
Determine the essential characteristics that must be met for an amount to be considered a liability
Differentiate between a current and a noncurrent liability
You meet a minimum of 70% on the exam
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Record general liabilities
Assessment Strategies
Written Product and/or Exam
Criteria
Record routine current liability transactions
Compute the present value and record a noninterest-bearing note
Record typical accrued liabilities including interest payable, payroll payable, accrued paid absence time, etc.
You meet a minimum of 70% on the exam
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Record contingent liabilities
Assessment Strategies
Written Product and/or Exam
Criteria
Identify what should be recorded given a list of typical contingent liabilities
Record the provision for warranty costs properly
You meet a minimum of 70% on the exam
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Record long-term bonds
Assessment Strategies
Written Product and/or Exam
Criteria
Justify issuing long-term bonds rather than stock
Differentiate the market rate of interest from the stated rate of interest
Compute the price of a bond using a business calculator
Prepare a bond amortization schedule
Record the sale of the bond and routing interest accrual and payments
Record the reacquisition of a bond, including any gain or loss on the transaction
You meet a minimum of 70% on the exam
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Record the provision for income taxes
Assessment Strategies
Written Product and/or Exam
Criteria
Record the provision for income taxes with the intraperiod tax allocation
Record the provision for income taxes with the interperiod tax allocation
Computations are accurate
You meet a minimum of 70% on the exam
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Record a net operating loss
Assessment Strategies
Written Product and/or Exam
Criteria
Explain the purpose for the net operating loss carryback and carryforward
Compute the correct loss to be carried back to previous periods and the remaining loss to be carried forward to future periods
Record the tax benefit of the operating loss in the loss year
Record the tax benefit of the operating loss carryforward in subsequent periods
Prepare the bottom section of the income statement for the loss year
You meet a minimum of 70% on the exam
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Record a lease
Assessment Strategies
Written Product and/or Exam
Criteria
Justify leasing rather than buying an operating asset
Identify the four criteria that indicate a capital lease
Record an operating lease
Prepare a lease amortization schedule for a capital lease
Prepare the journal entries to record a direct financing type of capital lease on both lessee's and lessor's books
Prepare the journal entries to record a sales type of capital lease on both lessee's and lessor's books
You meet a minimum of 70% on the exam
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Record a sale-leaseback
Assessment Strategies
Written Product and/or Exam
Criteria
Explain the basic reason for a corporation selling an asset and subsequently leasing back
Justify deferral of a gain or loss on sale-leaseback
Record a sale-leaseback on both lessee and lessor books, and properly amortize the gain on sale-leaseback
You meet a minimum of 70% on the exam
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Record provision for pensions
Assessment Strategies
Written Product and/or Exam
Criteria
Differentiate a defined benefit pension plan from a defined contribution pension plan
Compute and record the pension expense, the appropriate prepaid or accrued pension costs, and the funding of the plan
You meet a minimum of 70% on the exam
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Record basic corporate equity transactions
Assessment Strategies
Written Product and/or Exam
Criteria
Explain the principal objective in accounting for corporate capital
Record the sale of common stock for cash
Record common stock for services, assets, or other noncash consideration
Justify the purchase of treasury stock
Record the purchase and sale of treasury stock
Record the retirement of common stock whether held in the treasury or not
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Record dividends
Assessment Strategies
Written Product and/or Exam
Criteria
Explain why a corporation issues dividends
Record a cash or a mixed cash and property dividend including adjusting the property to fair market value
Justify the issuance of a stock dividend
Compute and record a small stock dividend
Explain the purpose for a stock split
Record a retained earnings appropriation
You meet a minimum of 70% on the exam
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Record a stock option plan
Assessment Strategies
Written Product and/or Exam
Criteria
Explain the purpose for executive stock options
Compute the total compensation to be recorded on the measurement date
Record the journal entry to record the option on the grant date, amortization of the compensation expense, and the exercise of the stock option
You meet a minimum of 70% on the exam
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Compute earnings per share
Assessment Strategies
Written Product and/or Exam
Criteria
Compute simple EPS
Compute primary EPS
Present EPS on the income statement for net income before extraordinary items, for extraordinary items, and for net income
You meet a minimum of 70% on the exam
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Prepare a complex statement of cash flows
Assessment Strategies
Written Product and/or Exam
Criteria
Justify the necessity for a statement of cash flows
Explain how the direct or indirect format affect the preparation of the cash from operations only
Prepare a statement of cash flows on a direct basis including the required reconciliation between accrual basis net income and cash from operations
Prepare a statement of cash flows on an indirect basis including supplement disclosure for interest and taxes paid
You meet a minimum of 70% on the exam
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Record accounting changes
Assessment Strategies
Written Product and/or Exam
Criteria
Justify the necessity for changing previously published financial statements
Record a basic change in accounting principle
Record a change in accounting estimate
Record the correction in the current period of a material error made in a current period of a material error made in a prior period
Prepare an income statement that includes a change in principle, change in estimate, and the correction of an error
Compute pro forma net income and earnings per share
You meet a minimum of 70% on the exam
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Utilize a financial calculator
Assessment Strategies
Skill Demonstration
Criteria
Compute the issue price of a bond
Amortize a bond
Compute the monthly/yearly payment of a long term liability
Complete a loan amortization schedule
Compute the present value of the minimum lease payments
Prepare a lease amortization schedule using both an annuity due payment schedule and an ordinary annuity payment schedule
Calculate the value of a capitalized lease and the lease payable