Questions from General Accounting


Q: Columbia Bank and Trust is considering giving Gallup Company a loan.

Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decides that further discussions with Gallup’s accountant may be desirable. One area of particular concern is t...

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Q: Deere & Company is a global manufacturer and distributor of agricultural,

Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2014 annual report. Instructi...

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Q: Kevin Farley, an auditor with Koews CPAs, is performing a

Kevin Farley, an auditor with Koews CPAs, is performing a review of Knight Company’s Inventory account. Knight did not have a good year, and top management is under pressure to boost reported income....

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Q: Mateo Inc. had the following inventory situations to consider at January

Mateo Inc. had the following inventory situations to consider at January 31, its year-end. (a) Goods held on consignment for Schrader Corp. since December 12. (b) Goods shipped on consignment to Lyman...

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Q: On December 1, Quality Electronics has three DVD players left in

On December 1, Quality Electronics has three DVD players left in stock. All are identical, all are priced to sell at $85. One of the three DVD players left in stock, with serial #1012, was purchased o...

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Q: Eggers Company reports the following for the month of June.

Eggers Company reports the following for the month of June. Instructions: (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Ro...

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Q: The following comparative information is available for Keysor Company for 2014.

The following comparative information is available for Keysor Company for 2014. Instructions: (a) Determine net income under each approach. Assume a 30% tax rate. (b) Determine net cash provided by...

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Q: Birk Camera Shop Inc. uses the lower-of-cost

Birk Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Instructions: What amount should be reported on Birk Camera Shop&acir...

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Q: Recently, it was announced that two giant French retailers, Carrefour

Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in the Wall Street Journal blared, “French Retailers Create New Wal-...

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Q: Rosa’s Pizza operates strictly on a carryout basis. Customers pick up

Rosa’s Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees m...

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