Questions from Financial Accounting

Q: Research has shown that over 50% of financial statement frauds are

Research has shown that over 50% of financial statement frauds are committed by companies that improperly recognize revenue. What does this mean? Describe the most common ways companies improperly rec...

Q: Study the 2012 income statement of Original Imports, Inc., and

Study the 2012 income statement of Original Imports, Inc., and answer these questions about the company: 1. How much gross profi t did Original earn on the sale of its products in 2012? How much was...

Q: Amazing Way, Inc., reported the following items, listed in

Amazing Way, Inc., reported the following items, listed in no particular order at December 31, 2012 (in thousands): Income tax of 35% applies to all items. Prepare Amazing Way’s in...

Q: For fiscal year 2012, Mango Computer, Inc., reported net

For fiscal year 2012, Mango Computer, Inc., reported net sales of $19,323 million, net income of $1,997 million, and no significant discontinued operations, extraordinary items, or accounting changes....

Q: Suppose Cola Corp. sells soft drink syrup to a Russian company

Suppose Cola Corp. sells soft drink syrup to a Russian company on September 12. Cola Corp. agrees to accept 200,000 Russian rubles. On the date of sale, the ruble is quoted at $0.34. Cola Corp. collec...

Q: Boat Belting sells goods for 900,000 Mexican pesos. The

Boat Belting sells goods for 900,000 Mexican pesos. The foreign-exchange rate for a peso is $0.094 on the date of sale. Boat Belting then collects cash on April 24 when the exchange rate for a peso is...

Q: Jamison Cruise Lines, Inc., reported the following income statement for

Jamison Cruise Lines, Inc., reported the following income statement for the year ended December 31, 2012: _____________________________________Millions Operating revenues ................................

Q: Apex Marine, Inc., had income before income tax of $

Apex Marine, Inc., had income before income tax of $117,000 and taxable income of $91,000 for 2012, the company’s first year of operations. The income tax rate is 30%. 1. Make the entry to record Apex...

Q: Return to the Amazing Way data in Short Exercise 11-3

Return to the Amazing Way data in Short Exercise 11-3. Amazing Way had 10,000 shares of common stock outstanding during 2012. Amazing Way declared and paid preferred dividends of $6,000 during 2012. R...

Q: Use the Amazing Way data in Short Exercise S11-3.

Use the Amazing Way data in Short Exercise S11-3. In addition, Amazing Way had unrealized gains of $1,100 on investments and a $2,400 foreign-currency translation adjustment (a gain) during 2012. Both...