• Q : What is the ending cash balance....
    Accounting Basics :

    On October 15, the partnership sold securities for $40,000; it had purchased the securities for $44,000 on February 3, 2008. The firm's activities do not constitute "qualified production activities"

  • Q : Hedging the transaction....
    Accounting Basics :

    King's Bank, a British company, purchases market research services from Harris Interactive, a U.S. company, for a contract price to be paid in U.S. dollars when the report is delivered three months

  • Q : What is the fair value of the option....
    Accounting Basics :

    On December 31, 20x1, the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees.  What is the fair value of the option on December 1, 20x1?

  • Q : Consolidating the financial records....
    Accounting Basics :

    Several years ago, Jenkins Company acquired a controlling interest in Lambert Company. Lambert recently borrowed $100,000 from Jenkins. In consolidating the financial records of these two companies,

  • Q : Necessity of removing the amortization....
    Accounting Basics :

    When a parent company uses the equity method to account for investment in a subsidiary, the amortization expense entry recorded during the year is eliminated on a consolidation worksheet as a compon

  • Q : Statements about internal reports....
    Accounting Basics :

    Which of the following statements about internal reports is not true?

  • Q : Mitch recognized gain from the sale....
    Accounting Basics :

    Mitch paid the $600,000 to Thelma over the six-year period. The divorce agreement did not contain the word "alimony." Then, Mitch sold the stocks for $1,300,000. Mitch's recognized gain from the sal

  • Q : Computation of basic eps....
    Accounting Basics :

    Explain how dividends or dividend requirements on any class of preferred stock that may be outstanding affect the computation of basic EPS.

  • Q : Principles of internal control....
    Accounting Basics :

    Evaluate Pacific's internal control system and indicate which principles of internal control appear to have been ignored.

  • Q : Tax-free exchange avoiding any gains....
    Accounting Basics :

    B sells its stock to A. B will recognize a capital gain to the extent of the excess of the proceeds over its basis in its X stock. A will then liquidate X under Section 332 in a tax-free exchange av

  • Q : How company decide to present its financial statements....
    Accounting Basics :

    How would a company decide which foreign languages will be used to present its financial statements?

  • Q : Current rate method of translating foreign currency....
    Accounting Basics :

    Under the current rate method of translating foreign currency financial statements, what exchange rate should be used for cost of goods sold?

  • Q : Depreciation expense recorded by a subsidiary....
    Accounting Basics :

    Under the temporal method of consolidating foreign currency financial statements, what exchange rate should be used for translating the depreciation expense recorded by a subsidiary?

  • Q : Inventory under the temporal method....
    Accounting Basics :

    Essco Ltd, a foreign subsidiary of Peako Corp., has written down its inventory to current market value under a "lower of cost or market" rule. When consolidating Essco's balance sheet into Peako's b

  • Q : Parent company currency for all transactions....
    Accounting Basics :

    Which of the following methods for translating foreign currency financial statements attempts to produce consolidated financial statements as if a subsidiary had actually used the parent company's

  • Q : Compute the gain or loss on the intra-entity sale of land....
    Accounting Basics :

    Parker sold the land it purchased from stark in 2010 for $92,000 in 2012. Compute the gain or loss on the intra-entity sale of land.

  • Q : What adjustment would be made regarding the land transfer....
    Accounting Basics :

    Stiller reported net income of $125,000 and $140,000 for 2010 and 2011, respectively. Leo uses the equity method to account for its investment. On a consolidation worksheet, what adjustment would be

  • Q : Compute collin share of smeder net income....
    Accounting Basics :

    Compute Collin's share of Smeder's net income for 2010.

  • Q : Compute consolidated cost of goods sold....
    Accounting Basics :

    During the year, Patti sold merchandise to Shannon for $60,000 at a price based on the normal markup. At the end of the year, Shannon still possesses 30% of this inventory. Compute consolidated cost

  • Q : Find the consolidated cost of goods sold....
    Accounting Basics :

    Webb Co. acquired 100% of Rand Inc. on Jan 5, 2011. During 2011, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000. Rand still owned 40% of the goods at the end of the year. Cost of g

  • Q : Book value exceeded the transfer price problem....
    Accounting Basics :

    An intra-entity sale took place whereby the book value exceeded the transfer price of a depreciable asset. Which statement is true for the year following the sale?

  • Q : Transfer price exceeded the book value of depreciable asset....
    Accounting Basics :

    An intra-entity sale took place whereby the transfer price exceeded the book value of a depreciable asset. Which statement is true for the year following the sale?

  • Q : Subsidiary sold the land....
    Accounting Basics :

    Parent sold land to its susidiary for a gain in 2008. The subsidiary sold the land externally for a gain in 2011. Which of the following statements is true?

  • Q : Statement regarding an intra-entity sale of land....
    Accounting Basics :

    Which of the following statements is true regarding an intra-entity sale of land?

  • Q : Non-controlling interest in net income....
    Accounting Basics :

    How would noncontrolling interest in net income have differed if the transfers had been for the same amount and cost, but from Stendall to Edgar?

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