Questions from Financial Accounting

Q: Suppose the following data were taken from the 2017 and 2016 financial

Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.) Instructions Perform each of the...

Q: The following information is available for Zoe’s Activewear Inc. for three

The following information is available for Zoe’s Activewear Inc. for three recent fiscal years. Instructions (a) Calculate the inventory turnover, days in inventory, and gross profit...

Q: In a period of rising prices, the inventory reported in Short

In a period of rising prices, the inventory reported in Short Company’s balance sheet is close to the current cost of the inventory, whereas King Company’s inventory is considerably below its current...

Q: If your school has a subscription to the FASB Codification, go

If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. (a) The primary basis for accounting for inventories i...

Q: (a) What are generally accepted accounting principles (GAAP)?

(a) What are generally accepted accounting principles (GAAP)? (b) What body provides authoritative support for GAAP?

Q: Presented below are the assumptions and principles discussed in this chapter.

Presented below are the assumptions and principles discussed in this chapter. 1. Full disclosure principle 2. Going concern assumption 3. Monetary unit assumption 4. Periodicity assumption 5. Historic...

Q: Spahn Company has these cash balances: cash in bank $12

Spahn Company has these cash balances: cash in bank $12,742, payroll bank account $6,000, and plant expansion fund cash $25,000. Explain how each balance should be reported on the balance sheet.

Q: If your school has a subscription to the FASB Codification, go

If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. Instructions (a) Access the glossary (“Master Glossary...

Q: Lopez Co. had three major business transactions during 2017.

Lopez Co. had three major business transactions during 2017. (a) Reported at its fair value of $260,000 merchandise inventory with a cost of $208,000. (b) The president of Lopez Co., Victor Lopez, pur...

Q: A local bank reported that it lost $150,000 as

A local bank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by “employee fraud.” Explain the meaning of fraud to Ray and give an example of...