Questions from Financial Accounting

Q: Justin Time is confident that firms amortize all intangible assets. Is

Justin Time is confident that firms amortize all intangible assets. Is he right? If amortized, are intangible assets always amortized over their legal life? Explain.

Q: What is book value? How do we compute the gain or

What is book value? How do we compute the gain or loss on the sale of long-term assets?

Q: Describe return on assets, profit margin, and asset turnover.

Describe return on assets, profit margin, and asset turnover.

Q: Provide an example of a company with a high profit margin.

Provide an example of a company with a high profit margin. Provide an example of a company with a high asset turnover.

Q: Refer to the information in BE5–8, but now assume

Refer to the information in BE5–8, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $3,000 (debit). The company still estimates future uncollectible account...

Q: What is an asset impairment? Describe the two-step process

What is an asset impairment? Describe the two-step process for recording impairments. How does recording an impairment loss affect the income statement and the balance sheet?

Q: How do companies take a big bath? Explain the effect of

How do companies take a big bath? Explain the effect of a big bath on the current year’s and future years’ net income.

Q: Explain how we initially record a long-term asset.

Explain how we initially record a long-term asset.

Q: If University Hero initially records an expense incorrectly as an asset,

If University Hero initially records an expense incorrectly as an asset, how does this mistake affect the income statement and the balance sheet?

Q: Little King acquires land and an old building across the street from

Little King acquires land and an old building across the street from Northwestern State University. Little King intends to remove the old building and build a new sandwich shop on the land. What costs...