Questions from General Accounting

Q: Use the following information on current assets and current liabilities to compute

Use the following information on current assets and current liabilities to compute and interpret the acid-test ratio. Explain what the acid-test ratio of a company measures.

Q: Identify similarities and differences between the acid-test ratio and the

Identify similarities and differences between the acid-test ratio and the current ratio. Compare and describe how the two ratios reflect a company’s ability to meet its current obligations.

Q: Compute net sales, gross profit, and the gross margin ratio

Compute net sales, gross profit, and the gross margin ratio for each separate case a through d. Interpret the gross margin ratio for case a.

Q: Income statement information for adidas Group, a German footwear, apparel

Income statement information for adidas Group, a German footwear, apparel, and accessories manufacturer, for the year ended December 31, 2013, follows. The company applies IFRS, as adopted by the Euro...

Q: Refer to the information in QS 6-10 and assume the

Refer to the information in QS 6-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per uni...

Q: Refer to the information in QS 6-10 and assume the

Refer to the information in QS 6-10 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Ro...

Q: Refer to the information in QS 6-10 and assume the

Refer to the information in QS 6-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (R...

Q: A company reports the following beginning inventory and purchases for the month

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Required A...

Q: Homestead Crafts, a distributor of handmade gifts, operates out of

Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn’s house. At the end of the current period, Emma reports she has 1,300 units (products) in her basement, 20 of which w...

Q: Refer to the information in QS 6-4 and assume the

Refer to the information in QS 6-4 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit...