Questions from Accounting Principles

Q: Distinguish between the cost and equity methods of accounting for investments in

Distinguish between the cost and equity methods of accounting for investments in stocks.

Q: Name the major ratios useful in assessing (a) liquidity

Name the major ratios useful in assessing (a) liquidity and (b) solvency.

Q: Alou Company has 20,000 beginning finished goods units. Budgeted

Alou Company has 20,000 beginning finished goods units. Budgeted sales units are 160,000. If management desires 15,000 ending finished goods units, what are the required units of production?

Q: Total fixed costs are $26,000 for Daz Inc.

Total fixed costs are $26,000 for Daz Inc. It has a unit contribution margin of $15, and a contribution margin ratio of 25%. Compute the break-even sales in dollars.

Q: Using the data in Question 13, how would Jill report the

Using the data in Question 13, how would Jill report the data if the investments were long-term and the debt securities were classified as available-for-sale?

Q: Boise Company’s investments in equity securities at December 31 show total cost

Boise Company’s investments in equity securities at December 31 show total cost of $200,000 and total fair value of $210,000. Boise has less than a 20% ownership interest in the equity securities. Pre...

Q: During 2020, Doubleday Company converted $1,700,000

During 2020, Doubleday Company converted $1,700,000 of its total $2,000,000 of bonds payable into common stock. Indicate how the transaction would be reported on a statement of cash flows, if at all....

Q: In its 2015 statement of cash flows, what amount did Apple

In its 2015 statement of cash flows, what amount did Apple report for net cash (a) provided by operating activities, (b) used for investing activities, and (c) used for financing activities?

Q: The comparative balance sheets for Rothlisberger Company as of December 31 are

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from...

Q: James Brooks estimated the variable and fixed components of his company’s utility

James Brooks estimated the variable and fixed components of his company’s utility costs using the high-low method. He is concerned that the cost equation that resulted from the high-low method might n...