Questions from Financial Accounting

Q: Coca-Cola’s distinctive trademark is more valuable to the company than

Coca-Cola’s distinctive trademark is more valuable to the company than its bottling plants. But the company’s bottling plants are listed in the balance sheet, and the famous Trademark is not. Explain...

Q: Notes to the financial statements of two clothing manufacturers follow: Inventories

Notes to the financial statements of two clothing manufacturers follow: Inventories: The inventories are stated at the lower of cost, determined principally by the LIFO method, or market. Inventories:...

Q: Identify the basic “accountable events” in the life of a

Identify the basic “accountable events” in the life of a depreciable plant asset. Which of these events directly affect the net income of the current period? Which directly affect cash flows (other th...

Q: The following expenditures were incurred in connection with a new machine acquired

The following expenditures were incurred in connection with a new machine acquired by a metals manufacturing company. Identify those that should be included in the cost of the asset. (a) Freight charg...

Q: Equipment costing $86,000 was purchased by Spence, Inc

Equipment costing $86,000 was purchased by Spence, Inc., at the beginning of the current year. The company will depreciate the equipment by the declining-balance method, but it has not determined whet...

Q: Fin, Inc., purchased a truck for $40,000

Fin, Inc., purchased a truck for $40,000. The truck is expected to be driven 15,000 miles per year over a 5-year period and then sold for approximately $5,000. Determine depreciation for the first yea...

Q: Alexander Company purchased a piece of equipment for $14,000

Alexander Company purchased a piece of equipment for $14,000 and depreciated it for three years over a 5-year estimated life with an expected residual value at the end of 5 years of $2,000. At the end...

Q: Should depreciation continue to be recorded on a building when ample evidence

Should depreciation continue to be recorded on a building when ample evidence exists that the current market value is greater than original cost and that the rising trend of market Values are continui...

Q: Define (a) contribution margin, (b) contribution margin

Define (a) contribution margin, (b) contribution margin ratio, and (c) average contribution margin ratio.

Q: Frequently, the disadvantages of budgeting are not discussed in textbooks.

Frequently, the disadvantages of budgeting are not discussed in textbooks. Go to the website www.strategiccontrol.24xls.com/en211. What dysfunctional aspects of budgeting are highlighted by the author...