Questions from General Accounting

Q: During a recent management meeting, David Bryce, director of marketing

During a recent management meeting, David Bryce, director of marketing, proposed that the company begin capitalizing its marketing expenditures as goodwill. In his words, “Marketing expenditures creat...

Q: Berwik Company hires an accounting intern who says that intangible assets should

Berwik Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.

Q: Presented here are the components in Casilla Company’s income statement. Determine

Presented here are the components in Casilla Company’s income statement. Determine the missing amounts.

Q: Prepare the journal entries to record these transactions on Kimbrel Company’s books

Prepare the journal entries to record these transactions on Kimbrel Company’s books using a periodic inventory system. (a) On March 2, Kimbrel Company purchased $800,000 of merchandise from Pineda Com...

Q: In its first month of operations, Giffin Company made three purchases

In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are...

Q: Data for Giffin Company are presented in BE6-2. Compute

Data for Giffin Company are presented in BE6-2. Compute the cost of the ending inventory under the average-cost method. (Round the cost per unit to three decimal places.) Data given in BE 2: In its f...

Q: Halleran Company has the following internal control procedures over cash receipts.

Halleran Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure. (a) All over-the-counter receipts are e...

Q: While examining cash receipts information, the accounting department determined the following

While examining cash receipts information, the accounting department determined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $988.62....

Q: Catt Company has the following internal control procedures over cash disbursements.

Catt Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. (a) Company checks are pre numbered. (...

Q: Match each situation with the fraud triangle factor (opportunity, financial

Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it. (a) An employee’s monthly credit card payments are nearly 75% of their...