Questions from Financial Accounting

Q: Which of the following is true regarding the economic return from investing

Which of the following is true regarding the economic return from investing ratio? a. This ratio is used to evaluate how efficiently a company manages its total assets. b. This ratio is used to evalua...

Q: Lamichael Company purchased 100 percent of the outstanding voting shares of Darrell

Lamichael Company purchased 100 percent of the outstanding voting shares of Darrell Corporation in the open market for $200,000 cash and Darrell was merged into Lamichael Company. On the date of acqui...

Q: Company X owns 40 percent of Company Y and exercises significant influence

Company X owns 40 percent of Company Y and exercises significant influence over the management of Company Y. Therefore, Company X uses what method of accounting for reporting its ownership of stock in...

Q: Company W purchases 10 percent of Company Z and Company W intends

Company W purchases 10 percent of Company Z and Company W intends to hold the stock for at least five years. At the end of the current year, how would Company W’s investment in Company Z be reported o...

Q: Company T had outstanding 25,000 shares of common stock,

Company T had outstanding 25,000 shares of common stock, par value $10 per share. On January 1, 2011, Company P purchased some of these shares as a long-term investment at $25 per share. At the end of...

Q: Several years ago, Walters Company issued a $600,000

Several years ago, Walters Company issued a $600,000 bond at par value. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent. Record the ret...

Q: Cruise Corporation had outstanding 100,000 shares of no-par

Cruise Corporation had outstanding 100,000 shares of no-par common stock. On January 10, 2011, DockCompany purchased a block of these shares in the open market at $20 per share for long-term investmen...

Q: Below are selected T-accounts for Gauge Company.

Below are selected T-accounts for Gauge Company. Required: Complete the following journal entries and answer the following questions: a. Purchased additional investments in affiliated companies for...

Q: During 2011, Bradford Company purchased some of the 90,000

During 2011, Bradford Company purchased some of the 90,000 shares of common stock, par $6, of Hall,Inc., as a long-term investment. The annual accounting period for each company ends December 31. Thef...

Q: On January 4, 2011, D’Angelo Company acquired all of the

On January 4, 2011, D’Angelo Company acquired all of the net assets (assets and liabilities) of Barato Company for $124,000 cash. The two companies merged, with D’Angelo Company surviving. On the date...