Questions and Answers of Accounting Principles 14th Edition

Dan Fineman, the president of King Company, is pleased. King substantially increased its net income in 2014 while keeping its unit inventory relatively the same. Howard Gross, chief accountant,
Dan Fineman, the president of King Company, is pleased. King substantially increased its net income in 2014 while keeping its unit inventory relatively the same. Howard Gross, chief accountant,
Dan Fineman, the president of King Company, is pleased. King substantially increased its net income in 2014 while keeping its unit inventory relatively the same. Howard Gross, chief accountant,
Dan Fineman, the president of King Company, is pleased. King substantially increased its net income in 2014 while keeping its unit inventory relatively the same. Howard Gross, chief accountant,
The financial statements of Zetar plc are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are
After researching the different forms of business organization. Natalie Koebel decides to operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business
An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal.
The financial statements of Zetar plc are presented in Appendix F. Instructions for accessing and using the company's complete annual report, including the notes to its financial statements, are also
This chapter’s Feature Story discusses the fact that although Clif Bar & Company is not a public company, it does share its financial information with its employees as part of its open-book
The FASB has developed the Financial Accounting Standards Board Accounting Standards Codification (or more simply “the Codification»). The FASBs primary goal in developing the Codification is to
Some people are tempted to make their finances look worse to get financial aid. Companies sometimes also manage their financial numbers in order to accomplish certain goals. Earnings management is
This exercise will familiarize you with skill requirements, job descriptions, and salaries for accounting careers.Address: www.carcers-in-accounting.com, or go to
PepsiCo’s financial statements arc presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual
Financial statement information about four different companies is as follows. Instructions(a) Determine the missing amounts.
Financial statement information about four different companies is as follows. Instructions(a) Determine the
Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2014, Garba’s Goods and Zahra Enterprises.
(a) The following are users of financial statements.______Customers ______Securities and Exchange
Indicate whether each of the five statements presented below is true or false.1. The three steps in the accounting process arc identification, recording, and examination.2. The two most common types
Follow the same format as in BE1-6. Determine the effect on assets, liabilities, and owner’s equity of the following three transactions.a. Invested cash in the business.b. Withdrawal of cash by
Presented below are three business transactions. On a sheet of paper, list the letters (a), (b), and (c) with columns for assets, liabilities, and owner’s equity. For each column, indicate whether
Use the expanded accounting equation to answer each of the following questions.(a) The liabilities of Roman Company are $90,000. Owner’s capital account is $150,000; drawings are $40,000; revenues,
Given the accounting equation, answer each of the following questions.(a) The liabilities of Grieg company are $120,000 and the owner’s equity is S232,000. What is the amount of Grieg Company’s
Presented below is the basic accounting equation. Determine the missing amounts.
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.Fixed overhead costs per month
TJsing the information in E25.3, assume that in July 2022, Myers Company incurs the following manufacturing overhead costsInformation from E25.3. Fixed overhead costs per month are supervision
The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2022 at $900,000. The only variable costs budgeted for the division were
Fey Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas, Atlanta, and Tucson; and two departments within each factory- Machining and
The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers:
Edington Electronics Inc. produces and sells two models of calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington faces,
DeWitt Industries has adopted the following production budget for the first 4 months of 2022.Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw
You are an accountant in the budgetary, projections, and special projects department of Fernetti Conductor, Inc., a large manufacturing company. The president, Richard Brown, asks you on very short
Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials,
"The production budget shows both unit production data and unit cost data." Is this true? Explain why or why not.
Atlanta Company is preparing its manufacturing overhead budget for 2022. Relevant data consist of the following. Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct labor: time
Tanek Corp.'s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500,000 units of product:
Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased
Mesa Verde manufactures unpainted furniture for the do-it-yourself (DIY) market. It currently sells a table for $75. Production costs per unit are $40 variable and $10 fixed. Mesa Verde is
Define the term "opportunity cost." How may this cost be relevant in a make-or-buy decision?
The Securities and Exchange Commission (SEC) is the primary regulatory agency of U.S. financial markets. Its job is to ensure that the markets remain fair for all investors. Instructions a.
Cedar Grove Industries produces and sells cell phone-operated home security systems. Information regarding the costs and sales during May 2022 is as follows.Prepare a CVP income statement for Cedar
Snow Cap Company has a unit selling price of $250, unit variable costs of $170, and fixed costs of $160,000. Compute the break-even point in sales units using (a) The mathematical
Determine the missing amounts. 1. 2. 3. Unit Selling Price $640 $300 (e) Unit Variable Costs $352 (c) (f) Unit Contribution Margin (a) $93 $325 Contribution Margin Ratio (b) (d) 25%
The controller of Brokaw Production has collected the following monthly cost data for analyzing the behavior of utility costs.Instructionsa. Determine the fixed costs and unit variable costs using
Total fixed costs are $26,000 for Daz Inc. It has a unit contribution margin of $15 and a contribution margin ratio of 25%. Compute the break-even point in sales dollars.
Yams Company reports the following operating results for the month of August: sales $400,000 (5,000 units), variable costs $240,000, and fixed costs $90,000. Management is considering the following
What are some of the limitations of regression analysis?
Under IFRS, interest paid can be reported as:a. Only a financing activity.b. A financing activity or an investing activity.c. A financing activity or an operating activity.d. Only an operating
Each of these items must be considered in preparing a statement of cash flows for Irvin Co. for the year ended December 31, 2022. For each item, state how it should be shown in the statement of cash
IFRS requires that noncash items:a. Be reported in the section to which they relate, that is, a noncash investing activity would be reported in the investing section.b. Be disclosed in the notes to
The following T-account is a summary of the Cash account of Alixon Company.What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows? Balance,
Under IFRS:a. Taxes are always treated as an operating activity.b. The income statement uses the headings operating, investing, and financing. c. Dividends received can be either an operating or
Sosa Company reported net income of $190,000 for 2022. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an
Which of the following is correct?a. Under IFRS, the statement of cash flows is optional.b. IFRS requires use of the direct method in preparing the statement of cash flows.c. The majority of
The following information is available for Stamos Corporation for the year ended December 31, 2022.InstructionsPrepare a statement of cash flows using the indirect method. Beginning cash
The following three accounts appear in the general ledger of Beiber Corp. during 2022.InstructionsFrom the postings in the accounts, indicate how the information is reported on a statement of cash
Presented here are the financial statements of Warner Company.Additional data:1. Depreciation expense was $17,500.2. Dividends declared and paid were $20,000.3. During the year, equipment was sold
Rojas Corporation's comparative balance sheets are presented below:Additional information:1. Net income was $22,630. Dividends declared and paid were $19,500.2. No noncash investing and financing
Rodriquez Corporation's comparative balance sheets are as follows.Additional information:1. Net income was $18,300. Dividends declared and paid were $16,400.2. Equipment which cost $10,000 and had
Pietr Corporation reports operating expenses of $90,000, excluding depreciation expense of $15,000, for 2022. During the year, prepaid expenses decreased $7,200 and accrued expenses payable increased
Comparative balance sheets for International Company are as follows.1. Net income for 2022 was $135,000.2. Cash dividends of $70,000 were declared and paid.3. Bonds payable with a carrying value of
In its 2019 statement of cash flows, what amount did Apple report for net cash (a) Provided by operating activities, (b) Used for investing activities, (c) Used for financing
Give the equations under the direct method for computing (a) Cash receipts from customers and (b) Cash payments to suppliers.
In preparing its income statement for 2022, Parmalane assembles the following information.Ignoring income taxes, what is Parmalane's income from continuing operations for 2022 under IFRS?a.
Presentation of comprehensive income must be reported under IFRS in:a. The statement of stockholders' equity.b. The income statement ending with net income.c. The notes to the financial statements.d.
Operating data for Joshua Corporation are presented as follows.InstructionsPrepare a schedule showing a vertical analysis for 2022 and 2021. Net sales Cost of goods sold Selling
Vertical analysis (common-size) percentages for Palau Company's net sales, cost of goods sold, and expenses are listed here.Did Palau's net income as a percent of net sales increase, decrease, or
Horizontal analysis (trend analysis) percentages for Phoenix Company's sales revenue, cost of goods sold, and expenses are listed here.Explain whether Phoenix's net income increased, decreased, or
Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).Compute the current ratio for each year and comment on your results. Cash Accounts
The following data are taken from the financial statements of Colby Company.Compute for each year (a) The accounts receivable turnover (b) The average collection period. What conclusions
Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a managerial accounting course at her local college. One of the topics covered in the
What is activity-based costing, and what are its potential benefits?
Each of these items must be considered in preparing a statement of cash flows for Irvin Co. for the year ended December 31, 2022. For each item, state how it should be shown in the statement of cash
Under IFRS, interest paid can be reported as:a. Only a financing activity.b. A financing activity or an investing activity.c. A financing activity or an operating activity.d. Only an operating
The following T-account is a summary of the Cash account of Alixon Company.What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows?
IFRS requires that noncash items:a. Be reported in the section to which they relate, that is, a noncash investing activity would be reported in the investing section.b. Be disclosed in the notes to
Condensed financial data of Granger Inc. follow.InstructionsPrepare a statement of cash flows using the indirect method. Assets Cash Accounts receivable Inventory Prepaid expenses Long-term
Under IFRS:a. Taxes are always treated as an operating activity.b. The income statement uses the headings operating, investing, and financing.c. Dividends received can be either an operating or
Comparative balance sheets for International Company are as follows.Additional information:1. Net income for 2022 was $135,000.2. Cash dividends of $70,000 were declared and paid.3. Bonds payable
Sprouts Corporation reported net cash provided by operating activities of $412,000, net cash used by investing activities of $250,000, and net cash provided by financing activities of $70,000. In
Give the equations under the direct method for computing (a) Cash receipts from customers (b) Cash payments to suppliers
In January 2022, the management of Kinzie Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following
Amazon.com, Inc.'s financial statements are presented in Appendix D. Financial statements of Walmart Inc. are presented in Appendix E. The complete annual reports of Amazon and Walmart including
Vilander Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds
Debby Kauffman and her two colleagues, Jamie Hiatt and Ella Rincon, are personal trainers at an upscale health spa/resort in Tampa, Florida. They want to start a health club that specializes in
The following asset is not considered a financial investment under IFRS:a. Trading securities.b. Associate investment.c. Held-for-collection securities.d. Inventories.
The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company's website.Instructionsa.
Ownbey Corporation purchased debt investments for $52,000 on January l, 2022. On July 1, 2022. Ownbey received cash interest of $2,340. Journalize the purchase and the receipt of interest. Assume
Under IFRS, the equity method of accounting for long-term investments in common stock should be used when the investor has significant influence over an investee and owns:a. Between 20% and 50% of
Presented below are two independent situations:1. Edelman Inc. acquired 10% of the 500,000 shares of common stock of Schuberger Corporation at a total cost of $11 per share on June 17, 2022. On
Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 40 Leeds Co. 9% bonds (each with a face value of $1,000) for $40,000 cash on January 1, 2022. Interest
On December 31, 2021, the end of its first year of operations, Turnball Associates owned the following securities, that are held as a long-term investments. The securities are not held for influence
Some of Tollakson Corporation's investments in debt securities are classified as trading securities and some are classified as available-for-sale. The cost and fair value of each category at December
Under IFRS, the unrealized loss on trading investments should be reported:a. As part of other comprehensive loss reducing net income.b. On the income statement reducing net income.c. As part of other
Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on January 1, 2022, for $70,000. The bonds pay interest annually on January 1. On January 1, 2023, after receipt of interest,
Heidebrecht Design acquired 20% of the outstanding common stock of Quayle Company on January 1, 2022, by paying $800,000 for 30,000 shares. Quayle declared and paid $0.30 per share cash dividends on
Here is Frederick Company's portfolio of long-term stock investments at December 31, 2021, the end of its first year of operations.On December 31, the total cost of the portfolio equaled the total
Cost and fair value data for the trading debt securities of Munoz Company at December 31, 2022, are $64,000 and $59,000 respectively. Prepare the adjusting entry to record the securities at fair
Cost and fair value data for the trading debt securities of Munoz Company at December 31, 2022, are $64,000 and $59,000 respectively. Show the financial statement presentation of the trading
In its first year of operations, Godfrey Corporation purchased available-for-sale debt securities costing $72,000 as a long-term investment. At December 31, 2022, the fair value of the securities is
In its first year of operations, Godfrey Corporation purchased, available-for-sale debt securities costing $72,000 as a long-term investment. At December 31, 2022, the fair value of the securities is

Showing 200 - 300 of 586