Questions from General Accounting


Q: Tim Sands, the founder of Waterboots Inc., needs to raise

Tim Sands, the founder of Waterboots Inc., needs to raise $500,000 to expand his company’s operations. He has been told that raising the money through debt will increase the riskiness of his company m...

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Q: (a) What is the primary objective of financial reporting?

(a) What is the primary objective of financial reporting? (b) Identify the characteristics of useful accounting information.

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Q: Joe Merando, the president of Lane Company, is pleased.

Joe Merando, the president of Lane Company, is pleased. Lane substantially increased its net income in 2014 while keeping its unit inventory relatively the same. Donald Jantz, chief accountant, cautio...

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Q: Glenda Wine is president of Better Books. She has no accounting

Glenda Wine is president of Better Books. She has no accounting background. Wine cannot understand why fair value is not used as the basis for

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Q: During 2014, Damon Corp. entered into the following transactions.

During 2014, Damon Corp. entered into the following transactions. 1. Borrowed $60,000 by issuing bonds. 2. Paid $9,000 cash dividend to stockholders. 3. Received $13,000 cash from a previously billed...

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Q: Natalie Koebel spent much of her childhood learning the art of cookie

Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They spent many happy hours mastering every type of cookie\ imaginable and later devised new recipes...

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Q: What was Tootsie Roll’s largest current asset, largest current liability,

What was Tootsie Roll’s largest current asset, largest current liability, and largest item under “Other assets” at December 31, 2011?

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Q: Tyler Bazil is confused about how accounting information flows through the accounting

Tyler Bazil is confused about how accounting information flows through the accounting system. He believes information flows in this order: (a) Debits and credits are posted to the ledger. (b) Accounti...

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Q: State the rules of debit and credit as applied to (

State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the Common Stock account.

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Q: What is the normal balance for each of these accounts?

What is the normal balance for each of these accounts? (a) Accounts Receivable. (b) Cash. (c) Dividends. (d) Accounts Payable. (e) Service Revenue. (f) Salaries and Wages Expense. (g) Common Stock.

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