Questions from Financial Accounting

Q: Consolidation accounting a. combines the accounts of the parent company

Consolidation accounting a. combines the accounts of the parent company and those of the subsidiary companies. b. reports the receivables and payables of the parent company only. c. eliminates all...

Q: On January 1, 2016, Macrostore, Inc., purchased $

On January 1, 2016, Macrostore, Inc., purchased $100,000 face value of the 5% bonds of Service Express, Inc., at 110. The bonds mature on January 1, 2021. For the year ended December 31, 2019, Macrost...

Q: Return to Macrostore, Inc.’s bond investment in the preceding

Return to Macrostore, Inc.’s bond investment in the preceding question. For the year ended December 31, 2017, Macrostore received cash interest of $5,000. What was the interest revenue that Macrostore...

Q: The present value of $2,000 at the end of

The present value of $2,000 at the end of four years at 8% interest is a. $6,624 b. $1,228. c. $1,470. d. $2,000.

Q: Which of the following is not needed to compute the present value

Which of the following is not needed to compute the present value of an investment? a. The length of time between the investment and future receipt b. The rate of inflation c. The interest rate d....

Q: What is the present value of bonds with a face value of

What is the present value of bonds with a face value of $2,000, a stated interest rate of 6%, a market rate of 9%, and a maturity date six years in the future? Interest is paid semiannually. Use Excel...

Q: Consolidation of a foreign subsidiary usually results in a a.

Consolidation of a foreign subsidiary usually results in a a. gain or loss on consolidation. b. foreign-currency translation adjustment. c. foreign-currency transaction gain or loss. d. LIFO/FIFO...

Q: For the purpose of classifying liabilities as current or noncurrent, the

For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to a. the time period between purchase of merchandise and the conversion of this merchandise back...

Q: Failure to accrue interest expense results in a. an overstatement

Failure to accrue interest expense results in a. an overstatement of net income and an understatement of liabilities. b. an overstatement of net income and an overstatement of liabilities. c. an un...

Q: Tennis Shoe Warehouse operates in a state with a 6.5

Tennis Shoe Warehouse operates in a state with a 6.5% sales tax. For convenience, Tennis Shoe Warehouse credits Sales Revenue for the total amount (selling price plus sales tax) collected from each cu...