Questions from Accounting Principles

Q: You have been given the following information about the production of Usher

You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations....

Q: Windsor Corporation issues $500,000 of 9%, 5-

Windsor Corporation issues $500,000 of 9%, 5-year bonds on January 1, 2020, at 104. If Windsor uses the effective-interest method in amortizing the premium, will the annual interest expense increase o...

Q: The return on assets for Ayala Corporation is 7.6%.

The return on assets for Ayala Corporation is 7.6%. During the same year, Ayala’s return on common stockholders’ equity is 12.8%. What is the explanation for the difference in the two rates?

Q: Distinguish among the three types of activities reported in the statement of

Distinguish among the three types of activities reported in the statement of cash flows.

Q: (a) When should a long-term investment in common

(a) When should a long-term investment in common stock be accounted for by the equity method? (b) When is revenue recognized under this method?

Q: When the total cash inflows exceed the total cash outflows in the

When the total cash inflows exceed the total cash outflows in the statement of cash flows, how and where is this excess identified?

Q: Vern Thoms is puzzled. His company had a profit margin of

Vern Thoms is puzzled. His company had a profit margin of 10% in 2020. He feels that this is an indication that the company is doing well. Tina Amos, his accountant, says that more information is need...

Q: Rihanna Company is considering purchasing new equipment for $450,000

Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $60,000 over its 10-year useful life. Annual depreciation...

Q: Data for Croix Company are given in BE25.1. In

Data for Croix Company are given in BE25.1. In the second quarter, budgeted sales were $380,000, and actual sales were $384,000. Prepare a static budget report for the second quarter and for the year...

Q: Thunder Corporation, an amusement park, is considering a capital investment

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000 and have an estimated useful life of 5 years. It can be sold for $60,000 a...