Questions from Advanced Accounting

Q: Suppose a firm entered into a capital lease, debiting an asset

Suppose a firm entered into a capital lease, debiting an asset account and crediting a lease liability account for $150,000. Does this transaction need to be disclosed as part of the statement of cash...

Q: If guidance for a transaction is not specifically addressed in the Codification

If guidance for a transaction is not specifically addressed in the Codification, what is the appropriate procedure to follow in identifying the proper accounting?

Q: How many years of comparative financial statements are required under current GAAP

How many years of comparative financial statements are required under current GAAP?

Q: Passion Company is trying to decide whether or not to acquire Desiree

Passion Company is trying to decide whether or not to acquire Desiree Inc. The following balance sheet for Desiree Inc. provides information about book values. Estimated market values are also liste...

Q: Can the provisions of the Codification be ignored if the item is

Can the provisions of the Codification be ignored if the item is immaterial?

Q: Distinguish between an asset acquisition and the acquisition of a business.

Distinguish between an asset acquisition and the acquisition of a business.

Q: GAAP requires that firms test for goodwill impairment on an annual basis

GAAP requires that firms test for goodwill impairment on an annual basis. One reporting unit performs the impairment test during January while a second reporting unit performs the impairment test duri...

Q: Does current GAAP require that the information on the income statement

Does current GAAP require that the information on the income statement be reported in chronological order with the most recent year listed first, or is the reverse order acceptable as well?

Q: In the 1990s, the pooling of interest method was a preferred

In the 1990s, the pooling of interest method was a preferred method of accounting for consolidations by many managers because of the creation of instant earnings if the acquisition occurred late in th...

Q: What instruments qualify as cash equivalents?

What instruments qualify as cash equivalents?