Questions from Financial Accounting

Q: What four criteria must normally be met for revenue to be recognized

What four criteria must normally be met for revenue to be recognized under accrual basis accounting?

Q: You want a retirement fund of $125,000 when you

You want a retirement fund of $125,000 when you retire in six years. You are able to earn 8 percent on your investments. How much should you deposit each year to build the retirement fund that you wan...

Q: Wygant Corporation borrowed $290,000 on October 1, 2011

Wygant Corporation borrowed $290,000 on October 1, 2011. The note carried a 10 percent interest rate with the principal and interest payable on May 1, 2012. Prepare the journal entry to record the not...

Q: Ospry, Inc., has a quick ratio of 0.50

Ospry, Inc., has a quick ratio of 0.50 and working capital in the amount of $1,240,000. For each of the following transactions, determine whether the quick ratio and working capital will increase, dec...

Q: Buzz Coffee Shops is famous for its large servings of hot coffee

Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald’s, the lawyer for Buzz warned management (during 2011) that it could be sued if someone were to...

Q: What is the present value of $500,000 to be

What is the present value of $500,000 to be paid in 10 years with an interest rate of 8 percent?

Q: As a result of a slowdown in operations, Global Stores is

As a result of a slowdown in operations, Global Stores is offering employees who have been terminated a severance package of $118,000 cash, another $129,000 to be paid in one year, and an annuity of $...

Q: Refer to the financial statements of Urban Outfitters in Appendix C at

Refer to the financial statements of Urban Outfitters in Appendix C at the end of this book. Required: 1. Use the company’s balance sheet to determine the amounts in the accounting equation (A = L...

Q: Dell Inc., headquartered in Austin, Texas, is the global

Dell Inc., headquartered in Austin, Texas, is the global leader in selling computer products and services. The following is Dell’s (simplified) balance sheet from a recent year. As...

Q: You plan to retire in 10 years. Would it be better

You plan to retire in 10 years. Would it be better for you to save $27,500 a year for the last five years before retirement or $16,250 for each of the 10 years? You are able to earn 9 percent interest...