Questions from Financial Accounting

Q: Cheryl believes that companies report cost of goods sold and ending inventory

Cheryl believes that companies report cost of goods sold and ending inventory based on actual units sold and not sold. Her accounting instructor explains that most companies account for cost of goods...

Q: What are the three primary cost flow assumptions? How does the

What are the three primary cost flow assumptions? How does the specific identification method differ from these three primary cost flow assumptions?

Q: Refer to the information in BE5–6, but now assume

Refer to the information in BE5–6, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $600 (debit). The company still estimates future uncollectible accounts...

Q: Which cost flow assumption generally results in the highest reported amount for

Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.

Q: WorldCom committed the largest fraud in U.S. history.

WorldCom committed the largest fraud in U.S. history. What was the primary method WorldCom’s management used to carry out the fraud?

Q: What are the differences among a patent, a copyright, and

What are the differences among a patent, a copyright, and a trademark?

Q: What is goodwill and how do we measure it? Can we

What is goodwill and how do we measure it? Can we sell goodwill separately from the business?

Q: How do we decide whether to capitalize (record as an asset

How do we decide whether to capitalize (record as an asset) or expense a particular cost?

Q: Explain the usual accounting treatment for repairs and maintenance, additions,

Explain the usual accounting treatment for repairs and maintenance, additions, and improvements.

Q: Are litigation costs to defend an intangible asset capitalized or expensed?

Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.