Questions from Accounting Principles

Q: What percentage does Apple’s 2015 allowance for doubtful accounts represent as a

What percentage does Apple’s 2015 allowance for doubtful accounts represent as a percentage of its gross receivables?

Q: Roger Holloway cannot understand why cash realizable value does not decrease when

Roger Holloway cannot understand why cash realizable value does not decrease when an uncollectible account is written off under the allowance method. Clarify this point for Roger.

Q: Borke Company has a credit balance of $3,000 in

Borke Company has a credit balance of $3,000 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage-of-receivables basis is $5,800. Prepare the a...

Q: Regina Golden, the vice president of sales for Tropical Pools and

Regina Golden, the vice president of sales for Tropical Pools and Spas, wants the company’s credit department to be less restrictive in granting credit. “How can we sell anything when you guys won’t a...

Q: Sid Watney is uncertain about the applicability of the historical cost principle

Sid Watney is uncertain about the applicability of the historical cost principle to plant assets. Explain the principle to Sid.

Q: Romero Corporation owns a machine that is fully depreciated but is still

Romero Corporation owns a machine that is fully depreciated but is still being used. How should Romero account for this asset and report it in the financial statements?

Q: What are natural resources, and what are their distinguishing characteristics?

What are natural resources, and what are their distinguishing characteristics?

Q: Explain the concept of depletion and how it is computed.

Explain the concept of depletion and how it is computed.

Q: Rowand Company hires an accounting intern who says that intangible assets should

Rowand Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.

Q: Goodwill has been defined as the value of all favorable attributes that

Goodwill has been defined as the value of all favorable attributes that relate to a business. What types of attributes could result in goodwill?