Financial Accounting

When presented with the Profit and Loss statement for the last three months, Rut

When presented with the Profit and Loss statement for the last three months, Ruth Bower, CFO of City Hospital notice that the revenue over this period had increased significantly …

When prices are rising, which of the following will be true? Answer The real int

When prices are rising, which of the following will be true? Answer The real interest rate will be lower than the nominal interest rate. The real interest rate will be higher than…

When pricing products or services, all costs must be accounted for. This list wo

When pricing products or services, all costs must be accounted for. This list would include VC and FC. I've seen government project bids badly priced (VC + markup rather than tota…

When processing the accounts for Ellise’s Electrical Contractors, the following

When processing the accounts for Ellise’s Electrical Contractors, the following errors were made. 1. Electrical equipment purchased for $7800 cash was debited to Equipment and cre…

When property is contributed to a partnership for a capital and profits interest

When property is contributed to a partnership for a capital and profits interest, the holding period of the contributing partner’s interest: a. May include the holding period of t…

When property is disposed of, what factors influence the amount of the deductibl

When property is disposed of, what factors influence the amount of the deductible loss? A. The amount of the deductible loss when property is disposed depends on the type of prope…

When purchases of merchandise are made for cash, thetransaction: a. increases Ca

When purchases of merchandise are made for cash, thetransaction: a. increases Cash; decreases Merchandise Inventory b. increases Merchandise Inventory; decreases Cash c. increases…

When remeasuring foreign currency financial statements (functional currency is p

When remeasuring foreign currency financial statements (functional currency is parent currency), which of the following accounts would be translated using current exchange rates? …

When reporting on comparative financial statements, auditors ordinarily should m

When reporting on comparative financial statements, auditors ordinarily should modify their previously expressed opinion on the prior-years' financial statements if the " [None Gi…

When sales are constant, but the production level fluctuates, net operating inco

When sales are constant, but the production level fluctuates, net operating income determined by the variable costing method will: Answer fluctuate in direct proportion to changes…

When selling Treasury stock, the treasury stock account is “decreased” with a cr

When selling Treasury stock, the treasury stock account is “decreased” with a credit for the PURCHASE price (originally paid) of the stock, NOT the amount of cash received from th…

When selling an automobile, TESLA makes the following “Resale Value Guarantee”,

When selling an automobile, TESLA makes the following “Resale Value Guarantee”, please see the attached Poster. QUESTION A. (4)   From an accounting perspective, under what condit…

When she died, Jill owned a life insurance policy on her life that paid her daug

When she died, Jill owned a life insurance policy on her life that paid her daughter $500,000 upon her death. The policy was only valued at $25,000 prior to Jill's death. What amo…

When should a division of a company be abandoned and what will happen if one is

When should a division of a company be abandoned and what will happen if one is abandoned that has a net loss and is expected to continue to have a net loss for the foreseeable fu…

When should each of the following companies recognize revenue for the following

When should each of the following companies recognize revenue for the following operations? Identify potential revenue recognition issues or risk exposures facing the company: a. …

When should each of the following companies recognize revenue for the following

When should each of the following companies recognize revenue for the following operations? Identify potential revenue recognition issues or risk exposures facing the company: PLE…

When talking about business cycle, we identify leading indicators and lagging in

When talking about business cycle, we identify leading indicators and lagging indicators. Which of the following statements is incorrect? Leading indicators refer to those variabl…

When testing the control \"all the checks over $10,000 must be signed by both th

When testing the control "all the checks over $10,000 must be signed by both the cashier and the accounting manager", which of the following statements most precisely describes th…

When the Accounting Standards Board issues new standards, the implementation dat

When the Accounting Standards Board issues new standards, the implementation date is usually 12 months after the issue date, but early implementation is encouraged. As the Control…

When the Ehrenberg Company closed, the Smith Company (which provides no training

When the Ehrenberg Company closed, the Smith Company (which provides no training for its employees) offered to hire any of Ehrenberg’s former employees after they completed a leng…

When the Fed sells bonds, the: balances in bank accounts are increased, which dr

When the Fed sells bonds, the: balances in bank accounts are increased, which drains central bank reserves from the system causing the federal funds rate to increase balances in b…

When the Framers were designing the federal government, they believed that the H

When the Framers were designing the federal government, they believed that the House of Representatives would be “the people’s” branch of government. Nowadays, however, many criti…

When the IASB issues new standards, the implementation date is usually twelve mo

When the IASB issues new standards, the implementation date is usually twelve months from the date of issuance, with early implementation encouraged. Becky Hoger, controller, disc…

When the IASB issues new standards, the implementation date is usually twelve mo

When the IASB issues new standards, the implementation date is usually twelve months from the date of issuance, with early implementation encouraged. Becky Hoger, controller, disc…

When the IRS audited Winter Corporation\'s current year tax return, the IRS disa

When the IRS audited Winter Corporation's current year tax return, the IRS disallowed $10,000 of travel and entertainment expenses incurred by Charles, an officer-shareholder, bec…

When the Prestons took out a variable mortgage with the First Bank of Marietta,

When the Prestons took out a variable mortgage with the First Bank of Marietta, their interest rate was 9 percent. The agreement allowed First Bank to raise or lower the interest …

When the accounts of Ayayai Inc. are examined, the adjusting data listed below a

When the accounts of Ayayai Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. Prepare the following in general j…

When the accounts of Constantine Inc. are examined, the adjusting data listed be

When the accounts of Constantine Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. 1. The prepaid insurance acco…

When the accounts of Sheffield Inc. are examined, the adjusting data listed belo

When the accounts of Sheffield Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. Prepare the following in genera…

When the auditor is unable to obtain sufficient appropriate evidence because the

When the auditor is unable to obtain sufficient appropriate evidence because the client did not allow a procedure to be completed, which of the following would the report most lik…

When the bonds mature at the end of Year 4, what amount of principal will Olive

When the bonds mature at the end of Year 4, what amount of principal will Olive pay investors? How much cash was received on the day the bonds were issued (sold)? Were the bonds i…

When the buyer in a sales contract is in breach, sellers are allowed to sell the

When the buyer in a sales contract is in breach, sellers are allowed to sell the goods to another buyer or dispose of the goods under the Uniform Commercial Code (UCC). Which of t…

When the cost method is used to account for an investment thecarring value of th

When the cost method is used to account for an investment thecarring value of the investment is affected by: a)the dividend distribution of the investee b)the periodic net income …

When the effective-interest method of bond discount amortization is used, the ap

When the effective-interest method of bond discount amortization is used, the applicable interest rate used to compute interest expense is the prevailing market interest rate on t…

When the financial statements contain a misstatement, the effect of which is mat

When the financial statements contain a misstatement, the effect of which is material but not pervasive, the auditor should A. Disclaim an opinion and explain the effect of the mi…

When the indirect method is used, if accounts receivable increases during the ac

When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivable is A) added to net income B) added to the change…

When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 1

When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a. $ 321,970…

When the number of units sold exceed the number of units produced, income report

When the number of units sold exceed the number of units produced, income reported under absorption costing will be lower under absorption than under variable costing. Which of th…

When the price of CD players increases 5%, quantity demanded decreases 5%. The p

When the price of CD players increases 5%, quantity demanded decreases 5%. The price elasticity for CD players is inelastic. unit elastic. elastic. perfectly inelastic. Which stat…

When the price of natural gas is 3.12 per mcf, an average household uses 4.38 mc

When the price of natural gas is 3.12 per mcf, an average household uses 4.38 mcf. When the price of natural gas is 4.89, an average household uses 3.88 mcf. Calculate the usage o…

When the price of smartphones falls by 20 percent, the demand for data plan rise

When the price of smartphones falls by 20 percent, the demand for data plan rises by 7 percent. a. Calculate the cross-price elasticity of demand. Instructions: Round your answer …

When the records of Debra Hanson Corporation were reviewed at the close of 2018,

When the records of Debra Hanson Corporation were reviewed at the close of 2018, the following errors were discovered. For each item, indicate by a check mark in the appropriate c…

When the revenue from a long-term contract is recognized over a period time, we

When the revenue from a long-term contract is recognized over a period time, we recognizea portion of the total contract revenue based on how much of the work has been completed t…

When the stock market is going up over a long period of time, investors can beco

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock ma…

When the warranty obligation is recognized c. C.When the sale of d.N None of the

When the warranty obligation is recognized c. C.When the sale of d.N None of these a When there is a settlement b. of a warranty claim made by a customer. merchandise is made. 1 p…

When the waters of the Mississippi began to overflow their banks and flood the s

When the waters of the Mississippi began to overflow their banks and flood the surrounding area, M was forced to leave her home and head for higher ground. On December 2, she retu…

When there is a production constraint, a company should emphasize the products w

When there is a production constraint, a company should emphasize the products with: the highest unit contribution margins. the highest contribution margin ratios. the highest con…

When there is unused capacity, ________. Select one: a. the transfer-price range

When there is unused capacity, ________. Select one: a. the transfer-price range lies between the its variable cost per unit and the higher of its contribution or price at which t…

When these type of stock acquisitions (INVESTMENTS )occur...One company buying s

When these type of stock acquisitions (INVESTMENTS )occur...One company buying stock of another... the volume of stock acquired can fall into 3 categories... NonINFLUENTIAL INFLUE…

When these type of stock acquisitions (INVESTMENTS)occur One company buying stoc

When these type of stock acquisitions (INVESTMENTS)occur One company buying stock of another the volume of stock acquired can fall into 3 catagories. NonINFLUENTIAL INFLUENTIAL CO…