Questions from Financial Accounting

Q: Which one of the following statements is true if a company’s collection

Which one of the following statements is true if a company’s collection period for accounts receivable is unacceptably long? a. Cash flows from operations may be higher than expected for the company’s...

Q: Zenephia Corp. accepted a 9-month note receivable from a

Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest...

Q: The ‘‘principal’’ of a note receivable refers to a.

The ‘‘principal’’ of a note receivable refers to a. The amount of interest due. b. The amount of cash borrowed. c. The present value of the note. d. The financing company that is lending the money.

Q: The Committee of Sponsoring Organizations of the Treadway Commission (COSO)

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) discussed five components of internal control. Required: Define and discuss these five components of internal control.

Q: Net profit margin percentage is calculated by a. Dividing operating

Net profit margin percentage is calculated by a. Dividing operating income by (net) sales. b. Subtracting operating income from (net) sales. c. Dividing net income by (net) sales. d. Subtracting net i...

Q: Assume the same information as in Brief Exercise 5-42:

Assume the same information as in Brief Exercise 5-42: Gordon’s Grocers purchases bread from Buddy’s Bread Company at $1.45 per loaf. Gordon’s engaged in a customer service contract to purchase 20,000...

Q: Under the gross method, the seller records discounts taken by the

Under the gross method, the seller records discounts taken by the buyer a. At the time of sale. b. At the end of the period in question. c. Never; discounts are irrelevant under the gross method. d. A...

Q: Food To Go is a local catering service. Conceptually, when

Food To Go is a local catering service. Conceptually, when should Food To Go recognize revenue from its catering service? a. At the date the meals are served b. At the date the invoice is mailed to th...

Q: Compton Audio sells MP3 players. During 2019, Compton sold 1

Compton Audio sells MP3 players. During 2019, Compton sold 1,750 units at an average of $225 per unit. Each unit costs Compton $150. At present, Compton offers no sales discounts. Compton’s controller...

Q: Helmkamp Products sells golf clubs and accessories to pro shops. Gross

Helmkamp Products sells golf clubs and accessories to pro shops. Gross sales in 2019 were $2,850,700 (Helmkamp’s list price) on terms 2/15, n/45. Customers paid for $2,000,000 (Helmkamp’s list price)...