Questions from Intermediate Accounting


Q: Prophet Manufacturing Limited was organized on January 1, 2014. During

Prophet Manufacturing Limited was organized on January 1, 2014. During 2014, it used the straight-line method of amortizing its plant assets in its reports to management. As the company's controller,...

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Q: LianTang, HK Corporation's controller, is concerned that net income may

LianTang, HK Corporation's controller, is concerned that net income may be lower this year. He is afraid that upper-level management might recommend cost reductions by layiog off accounting staff, him...

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Q: Brookfield Asset Management Inc. is a publicly traded Canadian company that

Brookfield Asset Management Inc. is a publicly traded Canadian company that converted to IFRS on January 1, 2010. Instructions From the company's website, access the annual report for the year ended...

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Q: Gibbs Inc. purchased a machine on January 1, 2014,

Gibbs Inc. purchased a machine on January 1, 2014, at a cost of $60,000. The machine is expected to have an estimated residual value of $5,000 at the end of its five-year useful life. The company capi...

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Q: Two well-known company names in the transportation industry in Canada

Two well-known company names in the transportation industry in Canada are Canadian National Railway Company and Canadian Pacific Railway Limited. Go co either SEDAR (www.sedar.com) or to each company'...

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Q: Lufthansa and Air Canada are both global airline companies. Lufthansa reports

Lufthansa and Air Canada are both global airline companies. Lufthansa reports under IFRS. Air Canada reported under pre-changeover Canadian GAAP until 2010 and now reports under IFRS. Access the finan...

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Q: Usually a comparison assignment involves comparing two similar companies that are reporting

Usually a comparison assignment involves comparing two similar companies that are reporting under different GAAP. Ideally, it would be better to compare the same company's financial reports prepared o...

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Q: Instructions Gain access to the 2011 financial statements of Potash Corporation

Instructions Gain access to the 2011 financial statements of Potash Corporation of Saskatchewan from the company's website (www.potashcorp.com) or www.sedar.com. (a) Based on the information contained...

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Q: Canadian Tire Corporation, Limited is one of Canada's best-known

Canadian Tire Corporation, Limited is one of Canada's best-known retailers. Obtain a copy of Canadian Tire's financial statements for the year ended December 31, 2011, through SEDAR at www.sedar.com o...

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Q: WEBDESIGN Ltd. decided that it needed to update its computer programs

WEBDESIGN Ltd. decided that it needed to update its computer programs for its supplier relationships. It purchased an off-the-shelf program and modified it internally to link it to 'WEBDESIGN's other...

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