Questions from College Accounting

Q: What does the difference between the totals of the Income Statement columns

What does the difference between the totals of the Income Statement columns represent? What does the difference between the Balance Sheet columns totals represent?

Q: What is goodwill? When is it recognized?

What is goodwill? When is it recognized?

Q: Will a bond sell at a discount or at a premium if

Will a bond sell at a discount or at a premium if the stated rate is greater than the market rate on the bond? If the stated rate is less than the market rate?

Q: How is the amount of bond premium or discount to be amortized

How is the amount of bond premium or discount to be amortized in a period determined using the straight-line method?

Q: How is the periodic interest expense affected by the amortization of the

How is the periodic interest expense affected by the amortization of the premium on bonds payable?

Q: How is the periodic interest expense affected by the amortization of the

How is the periodic interest expense affected by the amortization of the discount on bonds payable?

Q: Describe the direct method of reporting cash flows from operating activities.

Describe the direct method of reporting cash flows from operating activities.

Q: Who usually administers a bond sinking fund?

Who usually administers a bond sinking fund?

Q: Under the indirect method of preparing a statement of cash flows,

Under the indirect method of preparing a statement of cash flows, what adjustment is made to net income if accounts payable increased from last year?

Q: Under the indirect method of preparing a statement of cash flows,

Under the indirect method of preparing a statement of cash flows, what adjustment is made to net income if accounts receivable increased from last year?