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Why do you think that the FASB requires one of two different transition methods when a company adopts a newly required accounting principle?
Effect of the change on the statement of financial position and earnings statement.
If a public company desires to change from the sum-of-theyears'-digits depreciation method to the straight-line method for its fixed assets.
Discuss whether the actions of the Department of Justice were fair with regard to the employees of Arthur Andersen.
What two alternatives are allowed for where a company may disclose the net cash flow from operating activities prepared under the indirect method.
Briefly describe how to determine each of the operating cash inflows and operating cash outflows under the direct method.
Define the direct method of reporting the cash flows from operating activities of a company.
Identify in which section of the statement of cash flows each of the preceding items would appear and indicate whether it would be an inflow .
Paid cash of $18,000 to retire bonds payable with a face value of $20,000 and a book value of $18,300.
On December 31, 2010, the stock had a fair value of $63 per share, and on February 8, 2011, Collins sold the stock for $67 per share.
Prepare a short memo that defines a company's operating, investing, and financing activities, and identifies the cash inflows and cash outflows.
The worksheet method is commonly used to analyze the information for preparing a company's statement of cash flows.
What are two types of financing and investing activities not involving cash?
On August 3, 2010, $700,000 of Alfred's convertible preferred stock was converted into $140,000 par value of its common stock.
Furthermore, Nello has long-term debt with a debt covenant that requires it to maintain a 1:1 acid-test (quick) ratio.
Describe two situations in which a company could justify a change in an accounting principle.
In which situations may it be impracticable for a company to apply the retrospective adjustment method?
How does a company report a change in an accounting principle in its interim financial statements?
Describe a change in a reporting entity. How does a company account for such changes?
How does the accounting for an indirect effect of a change in accounting principle differ between IFRS and U.S. GAAP?
For Year 2, Heller's cost of goods sold under FIFO was $360,000, while it would have been $410,000 under LIFO.
Prepare Bloom Company's retained earnings statement for the current year.
Explain how this change will be accounted for in Bliss Company's financial statements, and compute the current and future annual depreciation expense.
If Blake Company pays an additional bonus based on the change in income, would it recognize any expense?
At the end of Year 1, Cortex Company failed to accrue interest revenue of $3,200 that it had earned, but not received on an outstanding note receivable.