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
principles of financial accounting

Questions and Answers of Principles Of Financial Accounting

What event triggers the recognition of investment income under the amortized cost method? Under the fair value method? The equity method?P14-41.
How does the equity method discourage the manipulation of net income by investors?P14-41.
Define the terms parent and subsidiary.P14-41.
How does the consolidated balance sheet differ from the corporate balance sheet of the parent?P14-41.
Where is minority interest reported on the consolidated balance sheet, and how should it be interpreted?
What are segment disclosures, and why are they useful?P14-41.
What is the relationship between the corporate net income of a parent and consolidated net income?P14-41.
Under what circumstances will a consolidated balance sheet show an account called long-term investments in equity securities?P14-41.
What is a business combination? Name three ways in which a business combination can be achieved.P14-41.
Describe the interests and concerns of the owners and managers of a corporation that is acquired in a business combination.P14-41.
Under what circumstances are consolidated financial statements prepared?P14-41.
Preparation of the consolidated balance sheet for a parent and its subsidiary requires an analysis of any excess of acquisition cost over the book value of the net assets acquired. What are the two
Where is goodwill reported on the consolidated balance sheet, and how should it be interpreted?P14-41.
Explain the differences between the purchase method and the pooling-ofinterests method for recording business combinations. P14-41.
Describe the effect of a pooling of interests, accomplished by an exchange of common shares, on the equity of the acquiring company. P14-41.
Define new basis accounting. Describe two situations in which it is appropriate. P14-41.
What do the letters LBO stand for? What is the distinctive characteristics of an LBO? P14-41.
CLASSIFYING LONG-TERM INVESTMENTS. Long-term investments are held by businesses in different forms and for different reasons. The introduction to Chapter 14 discusses an excerpt from the consolidated
CONSOLIDATING DIFFERENT KINDS OF BUSINESSES. Pinafore Manufac- turing Company has decided that competitive conditions require that it offer financing to its customers. Since Pinafore’s management
ALTERNATIVE COMBINATION OF TWO CORPORATIONS. Paine Company is evaluating a potential business combination transaction with Slater Corporation. If the combination transaction is effected, Paine will
CORPORATE VIEWPOINT IN BUSINESS COMBINATIONS. Porter Enterprises is considering acquiring all the stock of Sullivan Corporation so that it can immediately expand its operations into the Northeast.
POOLING VERSUS PURCHASE INCOME STATEMENTS. The text indicates that a pooling-of-interests business combination transfers the book values of subsidiary assets to the consolidated balance sheet while a
MATCHING ACCOUNTING METHODS AND INVESTMENTS. Consider the following accounting methods for long-term investments:a) Amortized cost methodb) Fair value methodc) Equity methodd) Consolidation of parent
ACCOUNTING FOR LONG-TERM INVESTMENTS. Columbus Hardware, Inc., holds the following long-term investments at December 31, 19x7:1. Note receivable: This is a long-term note with a face value of $50,000
FAIR VALUE AND EQUITY METHODS. Smith Corporation acquired a longterm investment in the common stock of Virgil, Inc., on January 1, 19x9, for $100,000 cash. During 19x9 Virgil declared and paid cash
THE FAIR VALUE METHOD FOR LONG-TERM INVESTMENTS IN COMMON STOCK. On January 1, 19x7, Reduction Products, Inc., acquired 15% of the outstanding common stock (1,500 of 10,000 outstanding shares) of
AMORTIZED COST METHOD FOR DEBT SECURITIES. On January 1, 19x8, the sinking fund of Ambrose, Inc. consisted of long-term notes with a total face value of $500,000 and unamortized premium of $17,000.
EQUITY METHOD FOR LONG-TERM INVESTMENTS IN COMMON STOCK.On January 1, 19x38, Hill Corporation acquired 40% of the outstanding common stock(400 of 1,000 outstanding shares) of Valley Manufacturing,
ACCOUNTING FOR LONG-TERM INVESTMENTS IN COMMON STOCK. On January 1, 19x6, Stern Corporation purchased 100 shares of common stock issued by Milstein, Inc. (representing 12% of the total shares
GOODWILL. Pindar Corporation acquired all the outstanding stock of Strauss Company for $23,000 cash. The book value of Strauss’ equity (assets minus liabilities) at the date of the acquisition of
CORPORATE VERSUS CONSOLIDATED BALANCE SHEETS. Lawton Corporation is the wholly owned subsidiary of Gilbert, Inc. Immediately after the acquisition of Lawton, Gilbert has the following corporate and
PURCHASE VERSUS POOLING. Pearson Company and Staw Corporation enter into a business combination in which Pearson acquires all the outstanding common stock of Staw in exchange for newly issued shares
TERMINOLOGY FOR INVESTMENTS. A list of terms and a list of definitions/ or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related
ACCOUNTING FOR LONG-TERM INVESTMENTS. Michigan Manufacturing holds the following long-term investments at December 31, 19x9:a) Debt-retirement (sinking) fund: All investments in this fund are in debt
FINANCIAL STATEMENT EFFECTS OF INVESTMENTS. Pierce Corporation held the following investments for all of 19x4:a) 1,000 shares of Mayfield Company. During 19x4 Mayfield has 8,000 shares of common
LONG-TERM INVESTMENT IN COMMON STOCK. On January 1, 1994, Braddock Corporation acquired 15% of the outstanding common stock (3,000 of 20,000 outstanding shares) of Nathan, Inc., for $90,000 cash
EQUITY METHOD FOR LONG-TERM INVESTMENTS IN COMMON STOCK.On January 1, 19x2, Boulder, Inc., acquired 25% of the outstanding stock (2,000 of 8,000 outstanding shares) of Colorado Corporation for
FAIR VALUE METHOD FOR LONG-TERM INVESTMENTS IN COMMON STOCK. On January 1, 19x6, Stanton, Inc., acquired 12% of the outstanding common stock (2,400 of 20,000 outstanding shares) of Calamity
CONSOLIDATED BALANCE SHEET. Peachtree Corporation acquired 100% of the outstanding common stock of Standard Company in a business combination transaction accounted for as a purchase. Immediately
CONSOLIDATED INCOME STATEMENT. Johnson, Inc., is the wholly owned subsidiary of Stuart Corporation. The 19x1 income statements for the two corporations are as follows:The acquisition cost of
POOLING OF INTERESTS. Coopers Company and Avery, Inc., enter into a business combination that is to be accounted for as a pooling of interests. One share of Coopers stock is exchanged for every share
What is a decision? Q15-1.
How can information alter a decision? Q15-1.
What are some common decision-making situations in which financial statement data may be helpful? Q15-1.
What are comparative financial statements? How can comparative financial statements aid in decision making? Q15-1.
What are comparative component percentage statements? What kinds of information about a firm do they help detect? Q15-1.
When are comparative component percentage statements helpful? Q15-1.
What are the five basic types of financial ratios? Q15-1.
For which kinds of decisions is each of the five types of ratios helpful? Q15-1.
Are larger amounts always preferred over smaller amounts for financial ratios? Why? Q15-1.
Why must financial statement analysis be based on comparison? Q15-1.
To which kind of data can comparisons be made in financial statement analysis? Q15-1.
In a typical retail business, which accounting alternatives would tend to increase income?Q15-1.
CHANGE IN EXPECTED LIFE. The 1985 annual report for Union Carbide included the following information:In the third quarter of 1985 Union Carbide revised, retroactive to January 1, 1985, the estimated
ACCOUNTING CHANGES AND FINANCIAL ANALYSIS. The 1987 annual report for McDermott International, Inc., contained the following information:Effective April 1, 1986, McDermott International changed the
ACCOUNTING ALTERNATIVES AND FINANCIAL RATIOS. The 1987 annual report for Time Incorporated included the following information on a change in the procedure for amortizing its investment in pay-TV
ASSESSING THE EFFECTS OF THE “CLEAN AIR” LEGISLATION. In late 1990, Congress passed and the President signed into law legislation that will require significant reductions over a several-year
WINNING THE “COLD” WAR. Since the end of World War II, a large number of businesses have devoted the majority of their operations to the development and production of equipment for the U.S.
CHANGES IN THE PRICE OF FUEL FOR AIRCRAFT. The cost of fuel is reported to be about 20% of the total operating cost for a major airline. Events in the Middle East caused jet fuel costs nearly to
COMPARATIVE INCOME STATEMENT DATA. Consolidated income state-/ ments for Apple Computer appear below:REQUIRED:1. By what percentage did sales increase between 1992 and 1993? Between 1993 and 1994?2.
COMPARATIVE BALANCE SHEETS. Consolidated balance sheets for Apple Computer appear below:REQUIRED:1. By what percentage did total assets increase between 1993 and 1994?2. By what percentage did each
USING COMPARATIVE FINANCIAL STATEMENT DATA. The consolidated 1993, 1992, and 1991 income statements for PepsiCo, Inc., and Subsidiaries appear below:REQUIRED:1. By how much did sales, cost of sales,
USING COMPARATIVE FINANCIAL STATEMENT DATA. The consolidated 1993 and 1992 balance sheets for PepsiCo, Inc., and Subsidiaries appear below:Consolidated Balance Sheet (in millions except per share
USING COMPONENT PERCENTAGE STATEMENTS. The following comparative percentage income statements and balance sheets are available for Bryant Products Company:REQUIRED:. Why did income from operations
PREPARATION OF COMPONENT PERCENTAGE STATEMENTS. Financial statements for The Limited, Inc., appear below:REQUIRED:1. Prepare component percentage income statements for The Limited for 1993, 1992, and
SHORT-TERM LIQUIDITY RATIOS. The financial statements for Dayton Hud- son Corporation (a retailer operating Dayton’s, Hudson’s, Marshall Field, Target, and Mervyn’s) appear below: Consolidated
DEBT-MANAGEMENT RATIOS. Use the Dayton Hudson financial statements in Exercise 15-25 to respond to the following requirements.REQUIRED:1. Compute the five debt-management ratios for the years ended
OPERATING RATIOS. Use the Dayton Hudson financial statements in Exer- cise 15-25 and the following data to respond to the requirements below.REQUIRED:1. Compute the three operating ratios for the
PROFITABILITY RATIOS. Use the Dayton Hudson financial statements in Exercise 15-25 and the following data to respond to the requirements below.REQUIRED:1. Compute the five debt-management ratios for
STOCKHOLDER RATIOS. Use the Dayton Hudson financial statements in Exercise 15-25 and the following data to respond to the requirements below.REQUIRED:1. Compute the four stockholder ratios for the
USING COMPARATIVE DATA FOR CREDIT ANALYSIS. You are the credit manager for Materials Supply Company. One of your sales staff has made a $50,000 credit sale to Stewart Electronics, a manufacturer of
USING COMPARATIVE DATA FOR INVESTMENT ANALYSIS. Assume that you are a trust officer for the West Side Bank. You are attempting to select a pharmaceutical manufacturer’s stock for a client’s
USING COMPARATIVE INCOME STATEMENT DATA. The 1993, 1992, and 1991 income statements for The Walt Disney Company appear below.THE WALT DISNEY COMPANY CONSOLIDATED STATEMENT OF INCOMEREQUIRED:1. By how
USING COMPARATIVE STATEMENTS. Logo, Inc., owns and operates a small chain of sportswear stores located near colleges and universities. Logo has experienced significant growth in recent years. The
USING COMPARATIVE COMPONENT PERCENTAGE STATEMENTS. The following income statement and component percentage data are available for Robbins Audio Products:REQUIRED:1. Suggest why net income declined
PREPARATION OF RATIOS. Use the Logo, Inc., financial statements in Problem 15-33 to respond to the following requirements.REQUIRED:1. Compute operating ratios for Logo for 1995 and 1994. Has
COMPARING FINANCIAL RATIOS. Presented below are selected ratios for four firms: Caterpillar (a heavy-equipment manufacturer), Gannett (a newspaper pub- lisher), Kellogg (a food manufacturer), and
PREPARING COMPONENT PERCENTAGE STATEMENTS. The financial statements for NIKE, Inc. appear below and on the next page:REQUIRED:1. Prepare comparative component percentage income statements for NIKE
PREPARATION OF RATIOS. Use the NIKE financial statements in Problem 15-37 and the following data to respond to the requirements below.REQUIRED:- Prepare the 19 financial ratios for NIKE for 1993 and
ANALYZING GROWTH. Comparative financial statements for Intel Corporation (the manufacturer of microprocessors) follow:REQUIRED:1. Prepare component percentage income statements for 1993, 1992, and
IDENTIFYING THE CAUSES OF PROFITABILITY CHANGES. The consolidated financial statements for Federal Express Corporation and Subsidiaries appear below:REQUIRED:1. Evaluate Federal Express’
ACCOUNTING ALTERNATIVES AND FINANCIAL ANALYSIS. Shady Deal Automobile Sales Company has asked your bank for a $100,000 loan to expand its sales facility. Shady Deal provides you with the following
Describe the objectives of the federal government in levying income taxes. D16-1.
What are the components of corporate income for tax computations? D16-1.
Describe the corporate tax rate structure. D16-1.
How do short-term and long-term capital gains affect the determination of ordinary income?D16-1.
How do permanent and temporary differences affect income taxes expense? Give an example of each.. D16-1.
Why might corporations prefer revenues from dividends and municipal bonds over revenues from other sources? D16-1.
Describe two temporary differences between the measurement of revenue and expense for pretax accounting income and for taxable income. D16-1.
Why might management want to accelerate the recognition of expenses and decelerate the recognition of revenues for tax computations? D16-1.
How does the use of deferred income tax assets and liabilities relate to the matching concept? D16-1.
What are the circumstances that give rise to regular increases in the deferred income tax liability? D16-1.
Describe in general terms how income taxes affect decisions by corporations. D16-1.
INCOME TAXES IN ANNUAL REPORTS. Income taxes affect the financial statements and related footnotes in many ways.REQUIRED:1. To demonstrate this fact, secure a recent annual report for a company of
CONCEPTUAL BASIS FOR THE DEFERRED TAX LIABILITY. Some accountants have argued that recognition of a deferred tax liability is conceptually unsound because such “liabilities” do not represent
MINIMIZING TAXES. Heindenreich and Company has asked you for advice regarding the sale of some of its capital assets to minimize current taxes. Assume that Heidenreich’s income before any
EFFECT OF TAXES ON INVESTMENT COST. The Harris Company is considering two alternative investments. Both investments produce the same revenues each year. Assume that the tax rate applicable to
OBJECTIVES AND STRUCTURE OF TAXATION. Indicate whether each of the following statements is true or false. If the statement is false, explain in a sentence or two why it is false.1. The primary
USING THE CORPORATE TAX RATE STRUCTURE. For each of the ordinary income amounts noted below, determine the amount of corporate income tax due for the year:a) $18,000b) $45,000 ce) $166,000d)
REVENUE EXCLUSIONS. Using the data below, determine the amount of revenue to be included when computing corporate taxable income: Sales revenue (no installment sales) Dividend income $12,200,000

Showing 900 - 1000 of 5754

First
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
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