Questions from Financial Accounting

Q: Briefly describe the rationale for using a cost flow assumption, rather

Briefly describe the rationale for using a cost flow assumption, rather than the specific identification method, to value an inventory

Q: Kendahl Plastics Corporation contracts with NASA to manufacture component parts used in

Kendahl Plastics Corporation contracts with NASA to manufacture component parts used in commedications satellites. NASA reimburses Kendahl on the basis of the actual manufacturing costs it incurs, plu...

Q: Tots-To-Go, Inc., has two divisions—

Tots-To-Go, Inc., has two divisions—the seat division and the stroller division. The seat division supplies the seat frames used by the stroller division to make its strollers. The stroller division p...

Q: Frost, Inc., acquired land by issuing $770,000

Frost, Inc., acquired land by issuing $770,000 of capital stock. No cash changed hands in this transaction. Will the transaction be included in the company’s statement of cash flows? Explain.

Q: Define the term activity base.

Define the term activity base.

Q: Why would a company use multiple cost accounting systems?

Why would a company use multiple cost accounting systems?

Q: Percale Farms raises marine fish for sale in the aquarium trade.

Percale Farms raises marine fish for sale in the aquarium trade. Each year, Percale obtains a batch of approximately one million eggs from a local supplier. Percale’s manager is trying to decide wheth...

Q: What does book value per share of common stock represent? Does

What does book value per share of common stock represent? Does it represent the amount common stockholders would receive in the event of liquidation of the corporation? Explain briefly.

Q: Briefly explain the relationships between present value and (a)

Briefly explain the relationships between present value and (a) the length of time until the future cash flow occurs, and (b) the discount rate used in determining present value

Q: Assuming no change in the expected amount of future cash flows,

Assuming no change in the expected amount of future cash flows, what factors may cause the present value of a financial instrument to change? Explain fully