Questions from Financial Reporting


Q: Define the following: a. Permanent accounts b.

Define the following: a. Permanent accounts b. Temporary accounts

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Q: A typical accrual recognition for salaries is as follows: Salaries

A typical accrual recognition for salaries is as follows: Salaries Expense $1,000 (increase) Salaries Payable 1,000 (increase) Explain how the matching concept applies in this situation.

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Q: The following items are from Taperline Corporation on December 31, 2012

The following items are from Taperline Corporation on December 31, 2012. Assume a flat 40% corporate tax rate on all items, including the casualty loss. Sales …………………………………………. $670,000 Rentalincome…....

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Q: Why are adjusting entries necessary?

Why are adjusting entries necessary?

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Q: Why aren’t all transactions recorded in the general journal?

Why aren’t all transactions recorded in the general journal?

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Q: Describe the filing deadline for Form 10-K.

Describe the filing deadline for Form 10-K.

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Q: Identify the usual forms of a business entity and describe the ownership

Identify the usual forms of a business entity and describe the ownership characteristic of each.

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Q: Why would the use of insider information be of concern if the

Why would the use of insider information be of concern if the market is efficient?

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Q: Considering the EMH, it is best if financial disclosure is made

Considering the EMH, it is best if financial disclosure is made in the body of the financial statements. Comment.

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Q: Considering the EMH, how could abnormal returns be achieved?

Considering the EMH, how could abnormal returns be achieved?

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