Accounting exercises
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Each exercise includes the same accounting problem in 2 file types. The Python script installs its required packages when you run it. The Excel workbook shows the formula in each calculated cell. The worked example explains the facts and answers for both files.
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37 exercises. 37 in Python, 37 in Excel, across 321 learning objectives.
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From transactions to financial statements
A five-year straight-line depreciation schedule
Compute depreciable amount, annual depreciation, accumulated depreciation, carrying amount, and remaining depreciable amount from explicit estimates.
Learning objectives for this exercise
- Analyze a basic accumulated-depreciation rollforward and reconcile gross cost less the contra balance to carrying amount.
- Analyze how a change in a basic estimate input changes the computed amount and identify evidence needed to support the input.
- Compute and explain a basic straight-line depreciation schedule from cost, residual value, useful-life periods, and elapsed periods.
- Explain depreciation as systematic cost allocation rather than direct measurement of market value, physical condition, or cash accumulation.
- Explain the relationship among gross asset cost, credit-normal accumulated depreciation, and carrying amount without treating the contra balance as a liability.
- Explain why a supported accounting estimate can be uncertain without being arbitrary, exact, or an error.
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From transactions to financial statements
One working-capital difference, three liquidity views
Classify current balances, compute working capital and current ratios, trace a payable payment, and challenge metric only liquidity conclusions.
Learning objectives for this exercise
- Analyze a bounded operating-cycle fact pattern and identify why the classification horizon can differ from a calendar year or reporting period.
- Analyze a bounded short-term liquidity position using current-balance composition, operating cash flow, maturity timing, restrictions, and funding access while identifying unsupported conclusions.
- Classify ordinary Accounts Payable, accrued operating obligations, and explicitly short-term debt as current in a bounded fact pattern and identify contract or refinancing facts that could change the conclusion.
- Classify ordinary unrestricted Cash, collectible short-term trade receivables, operating inventory, and prepaid operating costs as current in a bounded fact pattern and identify facts that could change the conclusion.
- Compute and compare basic current ratios across positions, explain transaction-driven changes, and challenge conclusions unsupported by composition, timing, trend, or industry context.
- Compute and compare basic working-capital positions, trace changes to classified components, and identify why an equal difference does not establish equal liquidity.
- Explain an operating cycle as the resource-to-cash sequence of the entity's principal operations and distinguish it from the accounting cycle and reporting period.
- Explain current-asset classification on a classified balance sheet using availability, realization, sale, consumption, and operating-cycle boundaries rather than account-name memorization alone.
- Explain current-liability classification using expected settlement, current-resource use, operating-cycle, maturity, and contract boundaries rather than account-name memorization alone.
- Explain liquidity as time-sensitive payment capacity supported by resources, cash flows, funding access, and obligation timing rather than as one balance or ratio.
- Explain the current ratio as a unitless relative comparison of classified current assets to current liabilities, including its denominator and composition limits.
- Explain working capital as a date-specific arithmetic difference between classified current assets and current liabilities, distinct from Cash and from model-specific operating working capital.
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Accounting changes, error corrections, and comparative reconstruction
Quantify Granite Harbor's accumulated accrual error two ways
Trace four years of omitted accruals, compute rollover and iron curtain amounts, test a current catch up, and derive a balanced current ledger entry without deciding materiality.
Learning objectives for this exercise
- Build an origin, reversal, ending-balance, tax, and correction schedule for a supplied counterbalancing error.
- Compare the proposed catch-up entry with current rollover, ending iron-curtain, tax, and qualitative effects and preserve the supplied reporting conclusion.
- Compute the current-period rollover amount from supplied originating and reversing effects and reconcile it to current pretax income.
- Compute the ending accumulated balance-sheet misstatement and reconcile it to origin, reversal, correction, and carryover layers.
- Derive a balanced correction entry from current recorded and corrected balances and prove that it does not duplicate comparative effects.
- Distinguish revision of previously issued statements from the current ledger entry used to record a correction.
- Distinguish the current ledger adjustment from the comparative statements, opening equity, and note revisions required by the supplied reporting conclusion.
- Explain how an error can reverse cumulatively while distorting income, assets, equity, trends, and decisions in each affected period.
- Explain what the iron-curtain approach measures and why it can differ from the current-period income-statement effect.
- Explain what the rollover approach measures and why it can understate the significance of accumulated balance-sheet errors.
- Explain why a supplied omitted asset, liability, equity, or disclosure effect may persist rather than reversing through the next period.
- Explain why an error note identifies cause and period-specific effects rather than presenting only one corrected total.
- Explain why arithmetic tie-outs cannot substitute for authority, materiality, audit, filing, tax, legal, control, and communication conclusions.
- Explain why correcting an accumulated prior-period balance through current income can itself distort current-period results.
- Explain why correcting net income alone cannot prove the balance sheet, cash flows, equity, tax, EPS, and note are corrected.
- Explain why gross, net, class, period, and carryover views remain visible even when some misstatements offset numerically.
- Explain why magnitude is a starting point rather than a safe harbor and why no single qualitative factor mechanically determines materiality.
- Explain why similar comparative arithmetic communicates different causes under retrospective application and restatement.
- Explain why taxonomy modeling represents a completed accounting conclusion and cannot repair a wrong route or unreconciled statement.
- Identify whether a supplied prior misstatement arose from arithmetic, GAAP application, or oversight or misuse of facts available at the time.
- Label a supplied comparative bridge, opening-equity line, note heading, and release language consistently with the supported cause.
- Rebuild supplied affected comparative statements, opening equity, tax, EPS, and notes and tie them to the correction ledger.
- Roll a persistent error through subsequent statements and compute the supplied correction and comparative effects without assuming reversal.
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Accounting changes, error corrections, and comparative reconstruction
Reconstruct Cedar Trail's voluntary principle change
Build a supported pre period opening equity effect and two comparative pretax, tax, after tax, and EPS bridges without treating retained earnings as a plug.
Learning objectives for this exercise
- Assemble the supplied preferability conclusion, comparable-population evidence, retrospective bridge, and disclosure file for a voluntary change.
- Build a period-specific pretax, tax, after-tax, balance-sheet, opening-equity, and EPS bridge for supplied retrospective effects.
- Build a signed account-by-period map of supplied direct pretax and tax effects with an independent accounting-equation tie-out.
- Decompose transition instructions into scope, date, comparative treatment, cumulative adjustment, expedients, elections, and disclosure periods.
- Distinguish a principle change from initial accounting for a new transaction, an estimate revision, and correction of an unacceptable prior method.
- Distinguish a supplied Topic 250 reporting-entity change from ordinary acquisition, disposal, consolidation, and segment-reporting events.
- Distinguish an allowable alternative from a supported conclusion that it is preferable for the entity and transaction population.
- Distinguish the earliest comparative period presented from the oldest period for which internal records exist.
- Distinguish the supplied Topic 250 impracticability conditions from cost, effort, inconvenience, or missing documentation alone.
- Explain how retrospective application revises comparative direct effects and opening equity without treating every indirect consequence as historical.
- Explain how the accounting-change note must reconcile to the route memo, comparative statements, opening equity, tax, EPS, and authorized transition method.
- Explain why a later nondiscretionary payment caused by revised reported income is not manufactured in prior-period retrospective columns.
- Explain why a new pronouncement's transition provisions are read before applying Topic 250's default retrospective model.
- Explain why each comparative period uses its corrected numerator, weighted-average shares, dilution control number, and security facts rather than the current denominator.
- Explain why management convenience, earnings pattern, or industry popularity alone does not support a voluntary change as preferable.
- Explain why supported pre-comparative effects enter opening equity instead of current income while current and comparative period effects remain separate.
- Explain why tax effects follow enacted law, tax basis, jurisdiction, period, and statement component rather than one blended classroom rate by default.
- Map an issued standard's effective-date language to the entity's annual and interim calendar and document any early-adoption election.
- Partition supported effects into pre-opening, earliest-period, later comparative, and current-period layers.
- Reconcile the opening-equity adjustment to pre-period account effects, tax, comparative statements, and the statement of changes in equity.
- Separate balance changes required to apply the new principle from later cash-flow consequences caused by changed reported amounts.
- Separate proposal, issue, effective, early-adoption, transition, and entity adoption dates.
- Separate the three accounting-change routes from correction of an error by using dated evidence rather than management's label.
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Accounting changes, error corrections, and comparative reconstruction
Separate Linden Peak's estimate revision from an error
Use two evidence timelines and a prospective carrying amount schedule to show why identical revised inputs can have different reporting routes.
Learning objectives for this exercise
- Apply a supplied supported method change prospectively to carrying amount while preserving prior depreciation and preferability evidence.
- Build a current-and-future schedule from the supported carrying amount and revised inputs at the change date.
- Build a dated source-by-source timeline that records existence, availability, use, contradiction, owner, and unresolved implications.
- Distinguish a supported estimate change caused by new information from an error involving information that should have been used earlier.
- Distinguish facts existing and reasonably available at the original reporting date from later experience and developments.
- Explain why a supported depreciation-method change is treated as an estimate change effected by a principle change rather than an ordinary retrospective principle change.
- Explain why prospective treatment preserves historical amounts but includes the current period when the new information affects it.
- Identify whether a supplied prior misstatement arose from arithmetic, GAAP application, or oversight or misuse of facts available at the time.
- Separate the three accounting-change routes from correction of an error by using dated evidence rather than management's label.
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Advanced statement of cash flows and liquidity controls
Reconcile Cedar Trail's restricted cash and exchange-rate effect
Build a multi location population, eliminate an internal transfer, derive the separate exchange rate effect, and evaluate release controls.
Learning objectives for this exercise
- Build a beginning and ending bridge from supplied balance-sheet line locations to the statement's combined population and disclose the nature of restrictions.
- Derive the exchange-rate reconciliation effect from supported opening and ending translated populations and classified cash flows without assigning it to an activity section.
- Eliminate both sides of a supplied internal population transfer from section totals while retaining the restriction and location evidence.
- Issue a supported release, hold, or conditional recommendation from a supplied evidence and exception matrix without letting one passing control override another failure.
- Reconcile supplied cash, cash-equivalent, and restricted-cash locations to beginning and ending statement totals for the same entity, period, currency, and version.
- Tie supplied statement lines to cash-population, noncash, interest, tax, acquisition, restriction, and policy disclosures and identify omitted, duplicated, or mismatched facts.
- Translate and classify supplied foreign-currency cash transactions using dated or supported average rates and retain currency, rate, and source evidence.
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Advanced statement of cash flows and liquidity controls
Reconstruct Cedar Trail's direct and indirect operating cash flow
Build gross operating classes and a cause coded indirect bridge that agree without a plug, then articulate them through the full cash population.
Learning objectives for this exercise
- Build a gross cash ledger from supplied bank, subledger, journal, contract, and transaction evidence and retain every classification owner and unresolved item.
- Prepare supplied major operating receipt and payment classes from gross transaction and rollforward evidence and compute the operating subtotal.
- Reconcile direct and indirect operating totals at the same scope and investigate each difference through the transaction ledger and account rollforwards.
- Reconcile supplied cash consideration, cash acquired, noncash consideration, assumed liabilities, fees, and contingent amounts to the acquisition cash-flow line and noncash disclosure.
- Reconcile supplied cash, cash-equivalent, and restricted-cash locations to beginning and ending statement totals for the same entity, period, currency, and version.
- Reconcile supplied disposal proceeds, cash transferred, noncash consideration, costs, carrying amounts, and gain or loss without inserting the gain into investing cash flow.
- Test a supplied net-presentation conclusion against transaction facts and the applicable guidance, then retain gross evidence even when a net line is permitted.
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Advanced statement of cash flows and liquidity controls
Separate Harbor's deals, debt, and noncash activity
Reconcile acquisition and disposal cash, gross financing, and noncash consideration without using total consideration, gain, or net balance changes as cash.
Learning objectives for this exercise
- Reconcile supplied award expense, tax, withholding, exercise, and settlement cash evidence to the applicable sections and noncash bridge.
- Reconcile supplied cash consideration, cash acquired, noncash consideration, assumed liabilities, fees, and contingent amounts to the acquisition cash-flow line and noncash disclosure.
- Reconcile supplied disposal proceeds, cash transferred, noncash consideration, costs, carrying amounts, and gain or loss without inserting the gain into investing cash flow.
- Split a supplied debt settlement into accreted-interest, principal, and extinguishment-cost cash-flow components without confusing carrying amount or gain and loss with cash paid.
- Test a supplied net-presentation conclusion against transaction facts and the applicable guidance, then retain gross evidence even when a net line is permitted.
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Current liabilities, refinancing, and contingencies
Close Cedar Trail's routine accruals and assurance warranty
Reconcile earned payroll, employer costs, qualifying vacation, and an assurance warranty liability without confusing estimation, cash settlement, or service warranty revenue.
Learning objectives for this exercise
- Analyze plan terms, earned service, vesting or accumulation, forfeiture, expected payment, pay rates, and measurement date before computing a compensated-absence liability.
- Measure a supplied assurance-warranty population from covered units, expected claim incidence, expected cost per claim, prior claims, and current revisions.
- Prepare and explain a dated operating accrual, settlement or reversal, and current-liability presentation from supplied service and cutoff evidence.
- Reconcile days or hours earned through period end, gross compensation, supplied employer costs, withholdings, payment, and liability balances without treating the pay date as the expense date.
- Reconcile opening warranty liability, current provision, claims, estimate revisions, and ending liability while explaining why claims and current expense need not match.
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Current liabilities, refinancing, and contingencies
Route Cedar Trail's legal matters and debt classification
Apply supplied condition, probability, range, refinancing, callable, and issuance facts while keeping proposed guidance, gains, and later conditions outside current recognition.
Learning objectives for this exercise
- Analyze an event chronology for condition date, new and confirming evidence, specialized Topic precedence, recognized effects, disclosure, estimates, issuance authorization, and subsequent discovery.
- Analyze refinancing intent, execution or qualifying agreement, timing, term, cancellation and violation conditions, lender capacity, amount available, and issuance window before excluding any short-term obligation from current liabilities.
- Apply supplied probability and estimability conclusions to determine recognition, nonrecognition, and the unresolved evidence that prevents an entry.
- Build a chronology of covenant terms, measurement dates, breach, lender rights, cure, waiver timing and duration, and expected future compliance before concluding classification and disclosure.
- Build a dated debt-maturity schedule and reconcile carrying amount to current and noncurrent presentation before considering refinancing, call, or covenant facts.
- Design an evidence-bound disclosure support sheet that states nature, status, accrued amount when appropriate, possible loss or range, inability to estimate, and unresolved review without prejudging legal outcomes.
- Select the recognized amount from a supplied loss range, use a supported better estimate when one exists, and compute additional exposure without inventing a probability distribution.
- Separate a possible gain or recovery from the related loss, identify applicable specialized guidance, and avoid premature recognition or misleading net presentation.
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Debt issuance, effective interest, and extinguishment
Control Cedar Trail's note patterns and early retirement
Apply effective interest to a zero coupon note and a level payment note, separate between date interest from debt basis, and measure a supplied extinguishment without using face amount…
Learning objectives for this exercise
- Accrete a supplied zero-coupon debt issue from present value to maturity amount through effective interest while showing zero periodic coupon cash.
- Build a contractual principal maturity schedule, identify current portions, and reconcile it to net carrying amount without substituting interest or discount balances for principal due.
- Compute supplied elapsed-period interest and keep payable, cash settlement, and debt-basis amortization in distinct columns.
- Explain the eligibility, election-date, measurement, own-credit presentation, and disclosure questions that precede a supplied debt fair value option schedule.
- Given a supplied modification conclusion, preserve the existing liability, map revised cash flows and fees, and identify the inputs needed for subsequent accounting.
- Identify supplied debt-retirement consideration and keep it separate from face amount, accrued interest, and net carrying amount.
- Measure a supplied debt extinguishment from reacquisition consideration and net carrying amount, including unamortized basis layers, without inventing the derecognition conclusion.
- Separate each supplied installment payment into effective interest and principal reduction and reconcile the ending obligation.
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Debt issuance, effective interest, and extinguishment
Price and roll forward Cedar Trail's bond issue
Map a fixed rate bond's cash flows, price the issue, separate qualifying issuance costs, solve the cost adjusted effective yield, and carry the net liability to face without a final…
Learning objectives for this exercise
- Build a full-precision effective-interest schedule that separates coupon cash, interest expense, amortization, and carrying amount and reaches the contractual amount without an unexplained plug.
- Compute bond issue price as the sum of the present values of supplied principal and coupon streams using matched periodic inputs.
- Convert a supplied annual stated rate to the matching payment period and compute contractual cash interest from the correct principal base.
- Present and amortize supplied qualifying debt issuance costs with the related recognized debt while preserving line-of-credit and scope exceptions.
- Reconcile a bond discount from issue price to face amount through effective-interest amortization without treating it as a separate cash account.
- Translate a supplied debt term sheet into dated principal, interest, option, fee, and maturity cash flows before choosing a measurement schedule.
- Use a supplied market yield with the matching cash-flow period and explain why the schedule cannot establish that yield independently.
- Use supplied face amount to compute contractual coupon cash and maturity principal while keeping issue price and carrying amount separate.
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Income-tax accounting: book-tax, deferred, and disclosure
Measure Linden Peak's uncertain position and taxes-paid note
Apply a supplied recognition conclusion, reperform cumulative probability measurement, bridge the unrecognized benefit, and route the current taxes paid threshold.
Learning objectives for this exercise
- Apply a supplied technical-merits recognition conclusion before measuring any benefit and preserve the examination assumption.
- Order supplied settlement benefit amounts from largest to smallest, accumulate probabilities, and select the first amount whose cumulative probability exceeds 50 percent.
- Reconcile taxes paid to cash records and route jurisdictions meeting the current five-percent disclosure threshold without substituting expense or payable balances.
- Reconcile the unrecognized-tax-benefit balance separately from deferred tax liabilities, current payable, interest, penalties, settlements, and expirations.
- Separate uncertain-position recognition and measurement from deferred-tax-asset realizability and valuation allowance.
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Income-tax accounting: book-tax, deferred, and disclosure
Reconcile Cedar Trail's book-tax and deferred-tax rails
Recompute taxable income, current tax, gross and net deferred balances, enacted rate effects, valuation allowance, allocation, effective rate, and taxes paid thresholds.
Learning objectives for this exercise
- Allocate supplied tax effects to continuing operations, discontinued operations, OCI, and other applicable categories so the allocations equal the total provision.
- Build the rate reconciliation from controlled provision drivers and apply the current ASU 2023-09 category and five-percent routing requirements.
- Reconcile deferred tax liabilities by difference and reversal period without combining them with current taxes payable.
- Reconcile gross deferred tax assets by source and reversal period, then present the amount separately from its valuation allowance and any current refund claim.
- Reconcile taxable income from pretax book income and classified return adjustments without using it as the balancing plug in a provision.
- Remeasure each supplied temporary difference at its new enacted reversal-period rate and isolate the resulting effect from basis and allowance changes.
- Separate current tax expense or benefit from ending payable or receivable and cash taxes paid, then reconcile the three through a rollforward.
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Intangibles, R&D, software, and goodwill
Reconcile Linden Peak's intangible, goodwill, and impairment close
Defend finite and indefinite life, compute finite life amortization, build a supplied acquisition allocation, measure bounded impairment effects, and preserve the class rollforward.
Learning objectives for this exercise
- Build an acquisition-date schedule of supplied identifiable tangible and intangible assets and liabilities before computing residual goodwill.
- Compute and reconcile goodwill from supplied acquisition-method amounts only after the identifiable net-asset schedule is complete, and stop on an apparent bargain purchase.
- Defend a finite useful life from supplied contractual, renewal, obsolescence, demand, and expected-use evidence without defaulting to legal life.
- Evaluate supplied legal, renewal, competitive, maintenance, demand, and expected-use facts for indefinite-life classification and identify the required reassessment trigger.
- Measure a bounded goodwill impairment from supplied reporting-unit carrying amount, fair value, and goodwill carrying amount under the declared core or elected alternative model.
- Measure a bounded indefinite-lived intangible impairment from supplied carrying amount and fair value while preserving qualitative-screen, grouping, and valuation boundaries.
- Prepare and reconcile a finite-life intangible amortization schedule from supplied cost, residual value, readiness date, useful life, and consumption pattern.
- Preserve a supplied goodwill reporting unit through assignment, carrying-amount, fair-value, impairment, and disclosure schedules without substituting a legal entity or operating segment.
- Reconcile finite-lived, indefinite-lived, software, IPR&D, and goodwill opening-to-ending balances while preserving cash, noncash, amortization, impairment, and reclassification movements.
- Use supplied separability and contractual-right facts to distinguish an identifiable intangible asset from goodwill, expense, or an unresolved item before measurement.
- Verify supplied eligibility and election facts before applying the goodwill amortization and simplified impairment alternative, and distinguish the linked identifiable-intangible election.
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Intangibles, R&D, software, and goodwill
Route Linden Peak's research, internal software, hosting, and product costs
Use purpose, scope, period, adoption status, activity, feasibility, and availability evidence to reconcile four different cost clocks without turning the project folder into one asset.
Learning objectives for this exercise
- Classify dated preliminary-project, application-development, and post-implementation-operation costs under the declared current Subtopic 350-40 model and reconcile capitalized and expensed totals.
- Classify supplied personnel, materials, equipment, service, indirect, and filing costs after separating ordinary R&D from software, contractual, and business-combination branches.
- Distinguish a documented alternative future use from residual hope and allocate the supported asset amount between project consumption and later service.
- Select current or ASU 2025-06 pending content from supplied period, early-adoption, and transition facts and reject a schedule that blends their capitalization triggers.
- Separate acquired in-process R&D from the acquirer's post-acquisition internal R&D and identify which supplied transaction-scope facts control each route.
- Separate the software-license or service-contract scope conclusion from configuration, customization, conversion, training, maintenance, and subscription cost classification.
- Use a stipulated feasibility date and availability date to classify pre-feasibility R&D, qualifying production, and post-availability costs without inferring feasibility from a sprint milestone.
- Use supplied product purpose, customer rights, marketing, delivery, and maintenance facts to establish or withhold the external-use software scope conclusion.
- Use supplied purpose, marketing, delivery, authorization, component, and hosting facts to establish or withhold the internal-use software scope conclusion.
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Integrated intermediate-accounting capstone
Reconstruct Cedar Trail's adjusted close and release bridge
Post seven supplied adjustments, articulate the statements and cash flow, and interpret ratios and sensitivity without overstating them.
Learning objectives for this exercise
- Analyze a supplied file for cross-statement control matrix, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for disclosure-ledger tie-out, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for proposed adjustment register, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for sensitivity boundary, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
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Inventory ownership, cost flow, and measurement
Price Cedar Trail's layers, measurement adjustments, and inventory estimates
Reconcile one dated unit stream under periodic and perpetual FIFO, average, and LIFO; apply the US GAAP measurement fork; estimate two missing balances; and trace an error across periods.
Learning objectives for this exercise
- Build dated unit-cost layers from opening inventory and purchases, apply supplied sales without negative units, and reconcile ending quantity and cost.
- Compute a bounded average-cost retail estimate from reconciled goods available and net sales, then identify the markup, markdown, shrinkage, and department evidence needed for a fuller model.
- Compute a lower-of-cost-and-NRV adjustment at the declared application level, prepare the entry, and reconcile pre- and post-adjustment inventory.
- Compute ceiling, floor, designated market, carrying amount, and write-down for an in-scope LIFO or retail-method population and reconcile the entry.
- Compute estimated cost of goods sold and ending inventory from controlled sales and goods available, then challenge the historical margin for mix, markdown, loss, and period relevance.
- Compute periodic and perpetual FIFO cost of goods sold and ending inventory from dated units and costs and reconcile both to goods available.
- Compute periodic and perpetual LIFO cost of goods sold and ending layers from dated transactions and explain why transaction timing can change the results.
- Compute periodic weighted-average and perpetual moving-average unit cost, cost of goods sold, and ending inventory with controlled precision and a cost reconciliation.
- Prepare a supplied inventory write-down entry, reconcile cost to the post-adjustment carrying amount, and trace effects to expense, assets, income, equity, and later cost transfer.
- Trace a supplied inventory error across statements and periods, distinguish counterbalancing from harmless, and prepare the reporting-period correction with tax and comparative-statement research open.
- Use a disclosed LIFO reserve and its change to prepare a bounded FIFO comparison for inventory, cost of goods sold, gross profit, and selected ratios, with tax and scope limitations.
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Investments, fair value, and the equity method
Run one bond through three supplied classifications
Hold contractual cash flows constant while reconciling HTM, AFS, and trading measurement across interest, amortized cost, credit, fair value, earnings, OCI, and reported amount.
Learning objectives for this exercise
- Build a holder-side effective-interest row from supplied price, yield, cash interest, and dates, retaining full precision before any fair-value or credit adjustment.
- Given a supported AFS credit estimate and supplied fair value, separate earnings, allowance, noncredit OCI, and reported fair value without treating the total decline as one loss.
- Given a supported held-to-maturity classification and credit estimate, reconcile amortized cost, allowance, interest revenue, and net reported amount.
- Given a supported trading classification and supplied fair value, compute the period-end adjustment and route it to earnings while preserving interest revenue separately.
- Reconcile updated amortized cost to supplied fair value and identify the earnings, OCI, allowance, and reported-asset consequences required by the supplied classification.
- Separate an available-for-sale security's amortized-cost, credit-allowance, noncredit OCI, fair-value, and AOCI layers and reconcile them to the reported asset.
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Investments, fair value, and the equity method
Separate listed shares, private shares, and an influential holding
Reconcile fair value through earnings shares, a supplied measurement alternative holding, and an equity method investment with basis differences and dividends.
Learning objectives for this exercise
- Build a controlled bridge from acquisition cost through adjusted equity-method income, dividends, OCI, impairment, and ending carrying amount.
- Compute the investor's share of supplied dividends and reduce the equity-method carrying amount without recognizing the same investee performance a second time.
- Evaluate a dated influence memorandum using ownership, board representation, participation, material transactions, personnel interchange, technological dependency, contrary evidence, and the supplied conclusion.
- Given a supported election, evaluate supplied observable same-issuer transaction and impairment evidence, then reconcile the carrying amount and earnings effects.
- Given an approved acquisition-date allocation, distinguish inventory, finite-lived asset, and residual layers and adjust equity-method income for the applicable period effects.
- Given in-scope listed shares, controlled fair value, and dividends, compute the asset and separately identify fair-value and dividend effects in earnings.
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Lease identification, lessee, lessor, and sale-leaseback
Keep the lessor's three reporting lanes separate
Compare sales type commencement profit, direct financing deferred profit and residual support, and operating retained asset income with explicit net investment controls.
Learning objectives for this exercise
- Build and reconcile a supplied lessor bridge among lease receivable, guaranteed and unguaranteed residual amounts, deferred selling profit, net investment, interest income, receipts, and ending residual.
- Prepare and reconcile a supplied direct-financing lease's receivable, residual asset, deferred selling profit and initial direct costs, net investment yield, interest income, receipts, and ending residual.
- Prepare supplied sales-type commencement revenue, cost, profit or loss, initial-direct-cost treatment, net investment, interest income, receipts, entries, and residual reconciliation.
- Reconcile a supplied operating lessor's retained underlying asset, depreciation boundary, straight-line or other supported lease income, variable income, initial direct cost, entries, and maturity disclosure.
- Route supplied lessor facts through sales-type criteria, direct-financing collectibility and residual-support conditions, the ASU 2021-05 exception, and the operating residual lane.
- Separate lessee guarantees, unrelated third-party guarantees, and unguaranteed residual value and trace each supplied amount through classification, receivable, residual asset, and disclosure.
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Lease identification, lessee, lessor, and sale-leaseback
Run finance and operating lessee schedules without blending them
Recompute two five year lessee liabilities, bridge to ROU assets, expose the finance and operating expense patterns, and perform a supplied remeasurement.
Learning objectives for this exercise
- Measure an initial lease liability from supplied dated payments and rate, then reconcile interest, payments, principal, current support, and ending liability at full precision.
- Measure and reconcile a lessee ROU asset from liability, commencement payments, incentives, qualifying initial direct costs, amortization or single-cost mechanics, and supplied impairment effects.
- Prepare and reconcile a finance-lease liability schedule, ROU-amortization schedule, entries, statement effects, and cash-flow components under supplied classification and timing facts.
- Prepare and reconcile an unimpaired operating-lease liability, single lease cost, ROU reduction, entries, and statement effects under supplied classification and timing facts.
- Route a supplied lease change through separate-contract, scope-reduction, remeasurement, revised-rate, classification, and role-specific accounting at the correct effective date.
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Pensions and other postretirement benefits
Build Linden Peak's pension cost, OCI, AOCI, and employer entry
Separate service cost, other periodic cost components, actual versus expected return, prior service cost, actuarial loss, reclassification, and funded status.
Learning objectives for this exercise
- Explain and apply defined benefit sensitivity analysis within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply employer pension workpaper within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply expected long-term return rate within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply expected return on plan assets within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply net periodic pension cost within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension accumulated other comprehensive income within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension actuarial assumption within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension amortization reclassification within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension asset gain or loss within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension capitalization boundary within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension corridor amortization within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension curtailment within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension disclosure rollforward within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension discount rate within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension measurement date within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension obligation gain or loss within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension other comprehensive income within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension plan amendment within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension plan freeze within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension prior service cost or credit within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension service cost presentation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension settlement within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
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Pensions and other postretirement benefits
Reconcile Cedar Trail's PBO, plan assets, and funded status
Keep the obligation, trust assets, sponsor contribution, benefit payments, and recognized funded status liability on separate rails before joining them.
Learning objectives for this exercise
- Explain and apply accumulated benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply actual return on plan assets within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply benefit plan reporting entity within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply defined benefit pension plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply defined contribution plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply employee benefit arrangement within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply employer pension contribution within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply market-related value of plan assets within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply multiemployer plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension benefit payment within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension funded status within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension funding versus expense within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension interest cost within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension plan assets within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply pension service cost within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply projected benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply single-employer defined benefit plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply vested benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
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Pensions and other postretirement benefits
Reconcile Harbor Light's retiree medical obligation and cost
Move from EPBO and attribution to APBO, plan assets, funded status, postretirement benefit cost, OCI, and healthcare trend sensitivity.
Learning objectives for this exercise
- Explain and apply accumulated postretirement benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply expected postretirement benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply healthcare cost trend rate within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply net periodic postretirement benefit cost within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply other postretirement benefit plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
- Explain and apply postretirement benefit attribution within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
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Professional extensions: derivatives, currency, combinations, consolidation, and digital reporting
Bridge a combination, consolidation worksheet, and digital fact audit
Compute supplied goodwill, worksheet totals, and a complete key XBRL duplicate diagnostic.
Learning objectives for this exercise
- Analyze a supplied file for acquisition-method bridge, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for consolidation worksheet elimination, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for goodwill residual, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for xbrl fact identity, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
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Professional extensions: derivatives, currency, combinations, consolidation, and digital reporting
Reconcile Cedar Trail's full professional-extension bridge
Carry the supplied hedge, currency, translation, acquisition, consolidation, and XBRL schedules through one controlled release file.
Learning objectives for this exercise
- Analyze a supplied file for digital reporting release control, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for professional extension boundary, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
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Professional extensions: derivatives, currency, combinations, consolidation, and digital reporting
Route a forecast-purchase hedge through AOCI and inventory
A supplied cash flow hedge illustrates fair value recognition, current OCI, basis adjustment, and ending AOCI.
Learning objectives for this exercise
- Analyze a supplied file for cash-flow hedge accounting, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for forecast-purchase basis adjustment, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
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Professional extensions: derivatives, currency, combinations, consolidation, and digital reporting
Separate a euro receivable from foreign-entity translation
Remeasure a monetary item into functional currency, translate a supplied foreign entity, and keep earnings separate from CTA.
Learning objectives for this exercise
- Analyze a supplied file for cumulative translation adjustment, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for foreign-currency transaction remeasurement, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
- Analyze a supplied file for foreign-entity translation, show the evidence and mechanics, and identify any conclusion that remains outside the supplied scope.
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Receivables, notes, credit losses, and transfers
Reconcile Linden Peak's aging, note, and receivable transfers
Compute a four pool expected loss matrix and allowance rollforward, accrete a zero coupon note, and compare stipulated sale and secured borrowing transfer paths.
Learning objectives for this exercise
- Compute pool-level adjusted rates and expected losses, aggregate the allowance, and reconcile exposure and loss totals without hiding overrides.
- Compute proceeds, net carrying amount, transfer result, retained interests, or secured borrowing under a supplied and separately supported accounting classification.
- Compute the expense or benefit required for a supplied ending allowance and prepare the adjusting entry with explicit writeoff and recovery treatment.
- Prepare a full-precision effective-interest schedule and entries that reconcile initial carrying amount, interest, cash, and maturity face value.
- Prepare a supplied secured-borrowing entry and trace receivables, allowance, cash, borrowing, fees, collections, remittances, cash flows, and disclosures.
- Reconcile opening allowance, credit-loss expense or benefit, writeoffs, recoveries, other changes, and ending allowance to gross and net receivables.
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Revenue from contracts with customers
Allocate and reconcile Linden Peak's device-and-support contract
Compute a stipulated transaction price, relative standalone price allocation, three year obligation revenue, billings, collections, receivable, and net contract position.
Learning objectives for this exercise
- Allocate transaction price, show each SSP ratio and amount, control rounding, and reconcile obligation allocations to the contract total.
- Compute and reconcile a transaction price from labeled consideration components while preserving estimate date, currency, financing, and constraint assumptions.
- Compute current and cumulative revenue from a supplied faithful progress measure, estimate changes, and prior recognition while reconciling to the allocated price.
- Reconcile opening contract asset, performance, billing or milestone satisfaction, reclassification to receivable, impairment allowance, and ending balance.
- Reconcile opening contract liability, advance billings or cash, performance and revenue release, refunds, and ending balance by contract and period.
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Shareholders' equity, share-based compensation, and EPS
Attribute Linden Peak's award cost and tax effects
Separate equity and liability awards, graded vesting, market and performance conditions, incremental modification value, unrecognized cost, and deferred tax.
Learning objectives for this exercise
- Explain and apply equity-classified share award within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply graded vesting within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply grant-date fair value within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply liability-classified share award within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply market condition on a share award within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply performance condition on a share award within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply requisite service period within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply service condition within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply share-award forfeiture within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply share-award modification within a reconciled award-timeline workpaper using supplied authoritative facts.
- Explain and apply unrecognized compensation cost within a reconciled award-timeline workpaper using supplied authoritative facts.
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Shareholders' equity, share-based compensation, and EPS
Build Linden Peak's basic and diluted EPS
Retroactively adjust a split, weight dated common shares, allocate earnings to a participating award, order potential common shares, and exclude antidilution.
Learning objectives for this exercise
- Explain and apply antidilution within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply basic earnings per share within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply contingently issuable shares within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply diluted eps ordering within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply eps control number within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply if-converted method within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply income available to common shareholders within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply incremental earnings per share within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply participating security within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply potential common shares within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply retroactive share adjustment within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply treasury-stock method for eps within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply two-class method within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
- Explain and apply weighted-average common shares within a reconciled numerator-and-denominator workpaper using supplied authoritative facts.
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Shareholders' equity, share-based compensation, and EPS
Close Cedar Trail's equity register and rollforward
Reconcile authorization, issues, treasury share transactions, a two for one split, preferred and common dividends, and every shareholders' equity component.
Learning objectives for this exercise
- Explain and apply additional paid-in capital within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply cash dividend within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply issued shares within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply liquidating dividend within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply multiple-security issuance within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply outstanding shares within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply par or stated value within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply participating preferred stock within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply preferred dividend arrearage within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply property dividend within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply retained earnings restriction within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply share capital authorization within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply share issuance cost within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply share retirement within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply shareholders' equity rollforward within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply stock split within a reconciled class-level equity workpaper using supplied authoritative facts.
- Explain and apply treasury stock within a reconciled class-level equity workpaper using supplied authoritative facts.
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Statement presentation, comprehensive income, and disclosure
Reconcile Granite Harbor from continuing income through AOCI
Build and verify the five line performance bridge and component equity rollforward while preserving stipulated classification, net of tax, ownership, and measurement boundaries.
Learning objectives for this exercise
- Analyze an OCI component from underlying Topic and period measurement through tax presentation, current OCI, AOCI movement, possible reclassification, and statement and note location.
- Prepare a component-level AOCI rollforward from opening balance through current OCI, reclassification, tax and ownership effects to ending balance and equity-statement tie.
- Present supplied tax effects in continuing operations, discontinued operations, OCI, and other applicable categories.
- Reconcile continuing-operations income through discontinued operations to net income and through other comprehensive income to comprehensive income with tax and ownership labels preserved.
- Reconcile net income and each other-comprehensive-income component to comprehensive income, statement-of-equity changes, tax effects, and ownership attribution.
- Trace a topic-authorized reclassification through gross and tax effects, net income, current OCI, AOCI, comprehensive income, statement location, and note cross-reference.
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Tangible asset acquisition, capitalization, and resource obligations
Control Linden Peak's acquisition, bundle, and construction schedules
Separate qualifying asset cost from period cost, allocate a bundled price, and apply dated expenditure weights and the actual interest ceiling to a self constructed asset.
Learning objectives for this exercise
- Allocate a supplied bundled price using supported relative values, control rounding, and reconcile assigned asset costs to total consideration.
- Analyze a contribution packet for entity scope, transferor relationship, restrictions, measurement evidence, recognition date, and the supported corresponding credit.
- Analyze supplied exchange evidence, compute only the supported branch, and withhold a fair-value or gain conclusion when reliability or scope facts are absent.
- Build a dated construction-cost bridge through the supplied readiness point without adding internal profit or unsupported idle-period amounts.
- Compute weighted-average accumulated expenditures, avoidable interest, capitalized interest, and expensed interest from dated expenditures and supported borrowing terms.
- Distinguish a nonreciprocal asset contribution from an exchange, owner contribution, customer transaction, government assistance, and bargain purchase.
- Distinguish supported consideration and directly attributable readiness costs from training, opening, abnormal, and ongoing operating costs.
- Distinguish supported direct construction inputs, systematic overhead assignments, abnormal costs, period costs, and interest-capitalization inputs.
- Explain why a bundled consideration amount must be assigned to supported asset units and why the assignment affects later allocation and disposal.
- Explain why qualifying expenditures are time-weighted, borrowing layers are applied in order, and capitalized interest cannot exceed actual interest cost.
- Map an asset exchange through transaction scope, commercial substance, fair-value support, cash boot, acquired-cost measurement, and surrender-asset derecognition.
- Prepare a source-labeled initial-cost schedule that includes qualifying amounts, excludes period costs, and reconciles to consideration and payables.
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Tangible asset acquisition, capitalization, and resource obligations
Reconcile Linden Peak's resource, depletion, and retirement obligation
Measure a stipulated legal retirement obligation, add the associated retirement cost to a resource asset, and reconcile current extraction between inventory and expense.
Learning objectives for this exercise
- Assemble a supported natural-resource depletable base and distinguish land, equipment, exploration, development, restoration, residual, and specialized-industry questions.
- Compute accretion expense for a period and roll an asset retirement obligation forward to its settlement amount, writing the entry each year requires.
- Compute depletion per unit, current extraction depletion, inventory depletion, depletion expense, and ending depletable carrying amount with unit and dollar reconciliations.
- Explain what accretion expense measures and why it is separate from the depreciation of the retirement cost capitalized into the asset.
- Explain why depletion is first assigned to extraction and then divided between ending inventory and expense according to units sold.
- Explain why initial retirement cost equals the recognized obligation amount while later asset allocation and liability accretion follow separate rollforwards.
- Measure a stipulated retirement obligation from complete supplied scenarios and reconcile initial liability, accretion, revisions, and settlement without treating depreciation as liability reduction.
- Separate the legal-obligation and obligating-event analysis from probability-weighted cash-flow measurement, accretion, revision, and settlement.