ACG 3301 FASB SSARS and SAS: An Update and Review for 2024
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Course
ACG 3301 (ACG3301)
Institution
Abacus College, Oxford
ACG 3301 FASB SSARS and SAS: An Update and Review for 2024/ACG 3301 FASB SSARS and SAS: An Update and Review for 2024/ACG 3301 FASB SSARS and SAS: An Update and Review for 2024
FASB SSARS and SAS: An Update and Review for
2024
1. Whichofhe fllowing doss ASC 326-20 apply
A, Trade ecevables
B. Avilabl-orsle deb seurites
. Bauiy suries
D. Promises to give (pledges receivable) of a not-for-profit entity
2 Whichof he flloping doss ASC 326:20 s amnded by ASU 2016-13) it aly o
A Financing ecivales
B.Held-tomatuiy deb seuris
C.Offatanc shes rdi exposures ot acounted fora e
D. Policy loan receivables of an insurance entity
3. Jean Claude CPA is implemening the ASU 2016-13 credit loss model for his client, Company Z. Which
‘one of the following models does ASU 2016-13 use in dealing with credit losses:
A, Incurred loss model
B, Expected credit loss model
C. Probable loss mode]
D. Measured loss model
4. Company X has an allowance for credit losses at year end in the amount of $100,000, Which of the.
folowing i acsspableway in which X shoud present the S100.000: [\,
eparately present on the balance sheet the $100,000 allowance for credit losses that s deducted from
the receivable's amortized cost basis
B. Present rade receivables net on the balance sheet, and disclose the $100,000 allowance in the notes
C. Disclose the $100,000 in the supplementary information
D. Combine all allowances for credit loss aceounts and present the aggregate amount within the other
assets section of the balance sheet
. Which of the following are two enities under common control:
, A, Immediate family members where one awns more than 50% of Company A and the other owns 5% of
Company B
B. One spouse owns 55% of the voting ownership interest in Company A and the other spouse owns 60%
of the voting ownership interest in Company B
C. Grandfather owns 80% of Company A and Granddaughter owns 20% of Company B
D. A group owns 100% of CompanA yand 40% of Company B
6. Compa K has a held-to-maturity
ny deb security recorded at amortized cost. The fair value has declined
because interest rates increascd. How should the decline in fair valuc be handled under GAAP:
A The fair value of the sceurit should be disclosed only
B. Unrealized foss should be recorded on the income statement
. Unrealized loss should be recorded as part of other comprehensive income
. An allowance for credit losses should be recorded for the decline in value
7. Which of the following is rue with respect to ASU 2016-13's new rules for creditlosses related to
available-for-sale deb securitcs:
A. Credit losses should be recorded through a direct write-down of the asset
G redit losses should be recorded through an allowance for credit losses
C. Crdit losses should be recorded based on an other-than-temporary threshold
D, Once a credit loss s recorded, it cannot be reversed
8 Company Y has available-for-sale deb securites and is using the new impairment model in ASC 326-30,
In accordance with this model, the amount of the allowance for credit losses is limited to the amount by
which is below amortzed cost
A, Expected cash low
. Fair value
- Netpresent value
D. The sum of all previous cumulative lasses
9. John Mitchell CPA is preparing the disclosures required for his client o implement ASU 2016-13 with
respeet to credit losses. Which of the following disclosures is not a new disclosure required by ASU 2016-
13
A Credit qualiy information
3. Reasons for significant changes in the amount of write-offs
C. The amount of any sigilficant purchases of financial assels during the reporting period
, . The activity in the allowance forcredit losses
10. Sally Groen CPA is implementing ASU 2016-13 for her cliont, Big Ed's Hard Money Lender. Big Ed has
‘Some financial assets recorded at amortized cost. How should Sally accoun for the implementation of
ASU 2016-13 with respect o credit losses involving financial assets recorded at cos:
A. As o cumulative-cffect adjustment to the income statement
B. As a estatement of financial statements presented
C. As a cumulative-effect adjustment to the beginning retained carnings
D. Asa disclosure only
11. Company X is applying for Employee Retention Credit (ERC). Which of the followwing expenses is the
basis for measuring the amount of the ERC:
A. Payroll tax expense
B. Eligible expenses as used for the PPP loanforgiveness
. Bligible wages
D. Interest and debt service.
12, Jil' Juicy Pies receives an ERC in the amount of $300,000. Jill chooses to account for the ERC s a
conditional contribution under ASC 958, Where should Jill present the ERC on is statement of income:
A. Asa credit to payrolltax expense:
B. As a credit to payroll expense (wages)
CJAs revenue in the other income section
D. As a deferred credit on the balance sheet, amortized over five years
13, Jimmy's Juniper Showease has decided to account for the S500,000 ERC it received under the IAS 20
rules. Where should Jimmy present the ERC o ts statement of income:
A As a reduction to payroll tx expense
B. As other income only.
C. As a reduction to payroll expense only
14, Company X is issuing tax-basis financial statements. How shouldX present a 250,000 ERC in its
statement of income:
A As part of other income
B. Asa credito payroll tax expense
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