Questions from Financial Accounting


Q: On January 1, 2014, assume that Turner Construction Company agreed

On January 1, 2014, assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth College must pay $30 million upon signing and $30 milli...

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Q: Deere & Company manufactures agricultural and industrial equipment and provides financing services

Deere & Company manufactures agricultural and industrial equipment and provides financing services for its independent dealers and their retail customers. In Note 2 to its October 31, 2012, 10K, Deere...

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Q: A large manufacturer of truck and car tires recently changed its cost

A large manufacturer of truck and car tires recently changed its cost flow assumption method for inventories at the beginning of 2014. The manufacturer has been in operation for almost 40 years, and f...

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Q: Market equity beta measures the covariability of a firm’s returns with all

Market equity beta measures the covariability of a firm’s returns with all shares traded on the market (in excess of the risk-free interest rate). We refer to the degree of covariability as systematic...

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Q: The following information relates to a firm’s pension plan. Prior

The following information relates to a firm’s pension plan. Prior service cost due to 2013 amendment................ $ 60,000 PBO, January 1, 2013................................................ 1,000...

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Q: Lynn Construction enters into a firm purchase commitment for equipment to be

Lynn Construction enters into a firm purchase commitment for equipment to be delivered on June 30, 2013, for a price of 10,000 GBP. It simultaneously signs a forward foreign exchange contract for 10,0...

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Q: Kentucky Gold (KG) holds 10,000 gallons of whiskey

Kentucky Gold (KG) holds 10,000 gallons of whiskey in inventory on October 31, 2013, that costs $225 per gallon. KG contemplates selling the whiskey on March 31, 2014, when it completes the aging proc...

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Q: Excerpts from the disclosures on derivatives made by a large beverage manufacturer

Excerpts from the disclosures on derivatives made by a large beverage manufacturer in Year 4 appear below: Our Company uses derivative financial instruments primarily to reduce our exposure to adverse...

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Q: Discuss when each of the following types of businesses is likely to

Discuss when each of the following types of businesses is likely to recognize revenues and expenses. a. A bank lends money for home mortgages. b. A travel agency books hotels, transportation, and simi...

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Q: DataTech (DT) is a software manufacturer. It develops,

DataTech (DT) is a software manufacturer. It develops, markets, and supports software that helps manufacturers improve the competitiveness of their products. DT provides a detailed description of its...

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