Questions from General Accounting

Q: Dillard Co. has sales revenue of $100,000,

Dillard Co. has sales revenue of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?

Q: Napoli Company’s internal controls over cash disbursements provide for the treasurer to

Napoli Company’s internal controls over cash disbursements provide for the treasurer to sign checks imprinted by a check writer after comparing the check with the approved invoice. Identify the intern...

Q: “The use of a bank contributes significantly to good internal control

“The use of a bank contributes significantly to good internal control over cash.” Is this true? Why?

Q: Mitch Lang cannot understand why the cash realizable value does not decrease

Mitch Lang cannot understand why the cash realizable value does not decrease when an uncollectible account is written off under the allowance method. Clarify this point for Mitch.

Q: Pine Corp. has experienced tremendous sales growth this year, but

Pine Corp. has experienced tremendous sales growth this year, but it is always short of cash. What is one explanation for this occurrence?

Q: Mendosa Company has a credit balance of $2,200 in

Mendosa Company has a credit balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage-ofreceivables basis is $5,100. Prepare the adjust...

Q: What types of receivables does Tootsie Roll report on its balance sheet

What types of receivables does Tootsie Roll report on its balance sheet? Does it use the allowance method or the direct write-off method to account for uncollectibles?

Q: The Coca-Cola Company’s accounts receivable turnover was 9.05

The Coca-Cola Company’s accounts receivable turnover was 9.05 in 2011, and its average amount of net receivables during the period was $3,424 million. What is the amount of its net credit sales for th...

Q: On December 1, 2014, Havenhill Company had the following account

On December 1, 2014, Havenhill Company had the following account balances. During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment...

Q: Mrs. Betancourt is uncertain about how the historical cost principle applies

Mrs. Betancourt is uncertain about how the historical cost principle applies to plant assets. Explain the principle to Mrs. Betancourt.