Questions from Financial Accounting

Q: Douglas Corp. has experienced tremendous sales growth this year, but

Douglas Corp. has experienced tremendous sales growth this year, but it is always short of cash. What is one explanation for this occurrence?

Q: Hank Cook is confused about the lack of agreement between the cash

Hank Cook is confused about the lack of agreement between the cash balance per books and the balance per bank. Explain the causes for the lack of agreement to Hank and give an example of each cause.

Q: How does the average-cost method of inventory costing differ between

How does the average-cost method of inventory costing differ between a perpetual inventory system and a periodic inventory system?

Q: How can the amount of collections from customers be determined?

How can the amount of collections from customers be determined?

Q: Identify the basic principles of cash management.

Identify the basic principles of cash management.

Q: Match each situation with the fraud triangle factor (opportunity, financial

Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it. (a) An employee’s monthly credit card payments are nearly 75% of their...

Q: Earl Massey, director of marketing, wants to reduce the selling

Earl Massey, director of marketing, wants to reduce the selling price of his company’s products by 15% to increase market share. He says, “I know this will reduce our gross profit rate, but the increa...

Q: Albert Company discovers in 2017 that its ending inventory at December 31

Albert Company discovers in 2017 that its ending inventory at December 31, 2016, was $5,000 under- stated. What effect will this error have on: (a) 2016 net income, (b) 2017 net income, and (c) the co...

Q: Mark Coney is considering investing in Wiggles Pet Food Company. Wiggles’

Mark Coney is considering investing in Wiggles Pet Food Company. Wiggles’ net income increased considerably during the most recent year even though many other companies in the same industry reported d...

Q: What was Apple’s balance in cash and cash equivalents at December 31

What was Apple’s balance in cash and cash equivalents at December 31, 2014? Did it report any restricted cash? How did Apple define cash equivalents?