Questions from Financial Accounting

Q: What is the justification for using the net-of-discount

What is the justification for using the net-of-discount method to record inventory purchases when cash discounts are offered?

Q: Crane Company had the following inventory at December 31. 2017.

Crane Company had the following inventory at December 31. 2017. a. Determine the ending inventory amount by applying the lower of cost or net realizable value rule to 1. Each item of inventory. 2. Eac...

Q: What is an accrual? How do accruals impact the balance sheet

What is an accrual? How do accruals impact the balance sheet and the income statement?

Q: Sylvia Owen, owner of Haul Trucking is considering expanding operation from

Sylvia Owen, owner of Haul Trucking is considering expanding operation from seaule to the Portland area. Expansion is estimated to cost %10 million including the required new facilities and additional...

Q: How does issuing a bond at a premium or discount affect the

How does issuing a bond at a premium or discount affect the bond's effective interest rate vis-à-vis the coupon (stated) rate?

Q: What is the difference between a bond coupon rate and its market

What is the difference between a bond coupon rate and its market interest rate (yield)?

Q: The footnote below is from the 2017 I 0-K report

The footnote below is from the 2017 I 0-K report of Whole Foods Market, Inc., a Texas-based retail grocery chain. Inventories The Company values inventories at the lower of cost or market. Cost was de...

Q: Why do companies report a gain or loss on the repurchase of

Why do companies report a gain or loss on the repurchase of their bonds (assuming the repurchase price is different from bond book value)?

Q: The following table presents sales revenue, cost of goods sold,

The following table presents sales revenue, cost of goods sold, and inventory amounts for three specialty retailers, Tiffany & Co., Best Buy, and RH. a. Compute the gross profit margin (GPM) for e...

Q: How do debt ratings affect the cost of borrowing for a company

How do debt ratings affect the cost of borrowing for a company?