All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
introduction to financial accounting

Questions and Answers of Introduction To Financial Accounting

What is the significance of the base year in constructing a price index? How is the base year chosen?
What is the difference between a specific price index and a general price index?
What is the fundamental difference in the price-level adjustments made under current cost accounting and under historical cost/constant purchasing power accounting?
What are historical cost/nominal dollar financial statements?
What is the difference between monetary assets and nonmonetary assets?
What is the difference between monetary liabilities and nonmonetary liabilities? Give examples of both.
If the monetary assets held by a firm exceed its monetary liabilities throughout a period in which prices are rising, which results: a purchasing power gain or loss? What if monetary liabilities
If accountants preferred to display current values in the financial statements, would they use historical cost/constant purchasing power accounting or current cost accounting?
Describe the meaning of operating profit under a current cost accounting system.
"The distinction between monetary assets and nonmonetary assets is just as important for current cost accounting as it is for historical cost/constant purchasing power accounting." Is this statement
What are some of the items the FASB recommends for disclosure concerning the effects of price changes?
Market basket No. 1 consists of 2 units of A, 5 units of B, and 1 unit of D. Market basket No. 2 consists of 3 units of B, 4 units of C, and 2 units of D. The per unit prices of each item during 1990
The following total prices of a specified market basket were calculated for each of the years 1987 through 1991 :\section*{Required}1. Using 1989 as the base year, prepare a price index for the
A company's plant and equipment consisted of land purchased in late 1985 for \(\$ 350,000\), a building purchased in late 1987 for \(\$ 470,000\), and equipment purchased in late 1989 for \(\$
Determine whether the following items are monetary or nonmonetary items.1. Common stock.2. Retained earnings.3. Merchandise.4. Prepaid rent.5. Prepaid insurance.6. Salaries payable.7. Goodwill.8.
A company made the following purchases of land: in 1988 at a cost of \(\$ 60,000\), and in 1989 at a cost of \(\$ 35,000\). What is the current cost of the land purchases in (a) 1990 and (b) 1991,
Calculate the general purchasing power gain or loss in 1991 given the following information:a. The Cash balance on December 31, 1990, was \(\$ 2,500\). During 1991, cash sales occurred uniformly
Maxima Company purchased machinery for \(\$ 675,000\) on December 30, 1987. The equipment was expected to last eight years and have no salvage value; straightline depreciation was to be used. The
Brookes Express had three monetary items during 1991: cash, accounts receivable, and accounts payable. The changes in these accounts during the year were as follows:General price index numbers at the
Krenidon, Incorporated, purchased a tract of land for \(\$ 150,000\) in 1984 , when the general price index was 85.5. At the same time, a price index for land values in the area of Krenidon's tract
The costs of purchasing a common "market basket" in each of several years are as follows:\section*{Required}1. Construct a price index using 1985 as the base year. Round each index number to \(1 / 10
Bowldt Corporation purchased machinery for \(\$ 585,000\) on December 30, 1987. The equipment was expected to last nine years and have no salvage value; straightline depreciation was to be used. The
Eastbend Drafters had three monetary items during 1991: cash, accounts receivable, and accounts payable. The changes in these accounts during the year were as follows:\section*{Required}Calculate the
Olmos Company purchased a tract of land for \(\$ 180,000\) in 1983 , when the general price index was 84.2. At the same time, a price index for land values in the area of Olmos's tract was 90.5 . In
Who are the intended readers of general purpose financial statements?
What statements are usually included in the general purpose financial statements published by corporations?
General purpose financial statements should help readers make what kind of predictions?
What are the three broad objectives of financial reporting prescribed by the FASB?
Why are some comparative balance sheets prepared with columns that show increases and decreases in both dollar amounts and percentages?
Under what circumstances is it impossible to calculate a percentage increase or decrease in a comparative financial statement item?
When trends are calculated and compared, it is often informative to compare the trend of sales with the trends of several other financial statement items. What are some of the items that should be
What is meant by common-size financial statements?
What items usually are assigned a value of \(100 \%\) (a) on a common-size balance sheet and (b) on a common-size income statement?
Which ratio provides the best indication of a company's ability to meet its debt obligations in the very near future, current ratio or acid-test ratio?
Indicate which of the following transactions increase working capital, which decrease working capital, and which have no effect on working capital:a. Collected accounts receivable.\(b\). Borrowed
List several factors that have an effect on working capital requirements.
What are several reasons why a 2 to 1 current ratio may not be adequate for a particular company?
Why does turnover of accounts receivable provide information about a company's short-term liquidity?
Why does turnover of merchandise inventory provide information about a company's short-term liquidity?
Why do creditors like to see a high proportion of total assets being financed by owners' equity?
Why must the ratio of pledged plant assets to secured liabilities be interpreted with care?
What is the relationship between profit margin, total asset turnover, and return on total assets employed?
Why might a company's return on total assets employed be different from its return on common stockholders' equity?
What ratios might you calculate for the purpose of evaluating management performance?
How might you use the information provided by price-earnings ratio and dividend yield?
Calculate trend percentages for the following items using 1987 as the base year. Then state whether the situation shown by the trends appears to be favorable or unfavorable: 1991 Sales $595,000 1990
Where possible, calculate percentages of increase and decrease for the following unrelated items. The parentheses indicate deficit items. Equipment, net Notes receivable. 111 Notes payable. Retained
Express the following income statement information in common-size percentages and evaluate the situation shown as favorable or unfavorable. PADREN CORPORATION Comparative Income Statement For Years
Rawhide Company's December 31 balance sheets included the following data:\section*{Required}Compare the short-term liquidity positions of the company at the end of 1990 , 1989, and 1988, by
Refer to the information in Exercise 16-4 about Rawhide Company. The company's income statement for years ended December 31, 1990, and 1989, included the following data:\section*{Required}For the
Refer to the information in Exercises 16-4 and 16-5 about Rawhide Company. Compare the long-term risk and capital structure positions of the company at the end of 1990 and 1989 by calculating the
Refer to the financial statements of Rawhide Company presented in Exercises 16-4 and \(16-5\). To evaluate the operating efficiency and profitability of the company, calculate the following: (a)
Refer to the financial statements of Rawhide Company presented in Exercises 16-4 and 16-5. Additional information about the company is as follows:\section*{Required}To evaluate the profitability of
Common-size and trend percentages for a company's sales, cost of goods sold, and expenses follow:Required Present statistics to show whether the company's net income increased, decreased, or remained
The condensed statements of Falcon Hill Company follow:\section*{Required}1. Calculate each year's current ratio.2. Express the income statement data in common-size percentages.3. Express the balance
The condensed comparative statements of Rydmore Range Corporation follow:\section*{Required}1. Calculate trend percentages for the items of the statements using 1986 as the base year.2. Analyze and
The year-end statements of Riverbank Corporation follow:Assume all sales were on credit. On the December 31,1990 , balance sheet, the assets totaled \(\$ 350,300\), common stock was \(\$ 225,000\),
Two companies that operate in the same industry as competitors are being evaluated by a bank that may lend money to each one. Summary information from the financial statements of the two companies is
City Sales Corporation began the month of August with \(\$ 420,000\) of current assets, a current ratio of 2.5 to 1 , and an acid-test ratio of 1.5 to 1 . During the month, it completed the following
The condensed statements of Tradent Corporation follow:\section*{Required}1. Calculate each year's current ratio.2. Express the income statement data in common-size percentages.3. Express the balance
The condensed comparative statements of Clear River Company follow:\section*{Required}1. Calculate trend percentages for the items of the statements using 1986 as the base year.2. Analyze and comment
The year-end statements of Tooner Corporation follow:Assume all sales were on credit. On the December 31, 1990, balance sheet, the assets totaled \(\$ 360,600\), common stock was \(\$ 160,000\), and
Two companies that operate in the same industry as competitors are being evaluated by a bank that may lend money to each one. Summary information from the financial statements of the two companies is
Ft. Mason Corporation began the month of March with \(\$ 286,000\) of current assets, a current ratio of 2.2 to 1 , and an acid-test ratio of 0.9 to 1 . During the month, it completed the following
The Clorox Company is a diversified firm that develops, manufactures, and markets premium quality household products, architectural coatings, and food service products. In addition to the liquid
In your position as controller of Tropical Trade Company, you have the responsibility of keeping the board of directors informed about the financial activities and status of the company. In
Lodestar, Inc., and Cosmos, Inc., are competing companies with similar backgrounds. The stock of both companies is traded locally, and each stock can be purchased at its book value. Mary Link has an
Use the financial statements and related footnotes of Tyler Corporation shown in Appendix \(\mathrm{H}\) beginning on page 731 to complete the following requirements:\section*{Required}1. Calculate
Yaupon, Inc.'s 1990 statement of cash flows appeared as follows:Yaupon, Inc.'s, beginning and ending balance sheets were as follows:An examination of the company's statements and accounts showed:a.
The following items include the 1990 and 1989 balance sheets and the 1990 income statement of the James Company. Additional information about the company's 1990 transactions is presented after the
What is meant by marketable securities?
Under what conditions should a stock investment be classified on the balance sheet as a long-term investment?
What types of assets are classified as long-term investments?
In accounting for common stock investments, when should the cost method be used? When should the equity method be used?
Under what circumstances would a company prepare consolidated financial statements?
When the cost method is used to account for a long-term stock investment, what events cause the investor to record revenue from the investment?
If a company prepares consolidated financial statements, what method would the company normally use on its books to account for its investment in the subsidiary?
When a parent corporation uses the equity method to account for its investment in a subsidiary, what recognition is given by the parent corporation to the income or loss reported by the subsidiary?
Under what circumstances is lower of cost or market applied to long-term investments in stock?
When a long-term portfolio of investments in marketable equity securities is written down to a market value that is less than cost, how is the loss reported on the financial statements?
What account balances must be eliminated in preparing a consolidated balance sheet?
Why are the stockholders' equity accounts of a subsidiary eliminated in the process of preparing a consolidated balance sheet?
What is meant by minority interest? Where is this item disclosed on a consolidated balance sheet?
Why would a parent corporation pay more than book value for the stock of a subsidiary?
When a parent pays more than book value for the stock of a subsidiary, how should this additional cost be reported on the consolidated balance sheet?
What are two basic problems of accounting for international operations?
If a U.S. company makes a credit sale to a foreign customer and the customer is required to make payment in U.S. dollars, might the U.S. company have an exchange gain or loss as a result of the sale?
A U.S. company makes a credit sale to a foreign customer and the customer is required to make payment in a foreign currency. The foreign exchange rate was \(\$ 1.40\) on the date of the sale and is
On December 31, 1990, a U.S. company has an account receivable from a British customer which requires the customer to pay 6,000 pounds to the U.S. company. How do you determine the amount to be
In preparing its December 31, 1990, financial statements, a U.S. company had to report an account receivable that was denominated in a foreign currency. The receivable stemmed from a sale made on
During 1990, Kest Corporation made five investments in equity securities. These securities, with their December 31, 1990, market values, are as follows:a. Manor Corporation common stock, 3,000
Prepare general journal entries to record the following events on the books of K-Stop Company:1990 Jan. 5 Purchased 10,000 shares of Mert Company common stock for \(\$ 125,000\) plus broker's fee of
Prepare general journal entries to record the following events on the books of Akvar Company:1990 Jan. 3 Purchased 10,000 shares of Betel Company for \(\$ 133,000\) plus broker's fee of \(\$ 1,890\).
On December 31, 1989, Able Company and Baker Company each purchased 6,000 shares of Charlie Company stock at a cost of \(\$ 30\) per share. On that date, the stockholders' equity of Charlie Company
On December 31, Small Company had the following stockholders' equity:On the same day (December 31), Puff Company purchased 6,650 of Small Company's outstanding shares, paying \$20 per share, and a
During the year following its acquisition by Puff Company (see Exercise 15-5), Small Company earned \(\$ 25,000\), paid out \(\$ 12,000\) in dividends, and retained the balance for use in its
On December 31, 1990, Holter Company purchased 70\% of Cats Corporation's outstanding stock. The balance sheets of the two companies on that date were as follows:Present the consolidated balance
On January 1, 1990, Rayer Corporation purchased \(80 \%\) of Safte Corporation's outstanding stock. During the year ended December 31, 1990, Rayer earned a net income (excluding its equity in the
On June 15, 1990, Wilder Company made a credit sale to a Swedish company. The terms of the sale required the Swedish company to pay 46,000 kronor (Swedish) on January 15, 1991. Wilder prepares
Rhonder Company of Duluth, Minnesota, sells its products to customers in the United States and in Norway. On October 15, 1990, Rhonder Company sold merchandise on credit to the Norway Products

Showing 1400 - 1500 of 3948

First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved