Questions from Intermediate Accounting


Q: The following selected transactions relate to investment activities of Ornamental Insulation Corporation

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental’s investment...

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Q: The following are excerpts from the 2015 financial statements of Renault,

The following are excerpts from the 2015 financial statements of Renault, a large French automobile manufacturer. 14 – INVESTMENT IN NISSAN A – Nissan consolidation method Renault’s percentage interes...

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Q: Obtain the 2015 annual report of FCA Group (www.fcagroup

Obtain the 2015 annual report of FCA Group (www.fcagroup.com), which manufactures Fiat-brand automobiles as well as other products. Required: Find FCA’s discussion of “Interests in other companies” i...

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Q: For each of the following inventory errors occurring in 2018, determine

For each of the following inventory errors occurring in 2018, determine the effect of the error on 2018’s cost of goods sold, net income, and retained earnings. Assume that the error...

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Q: Corporations frequently invest in securities issued by other corporations. Some investments

Corporations frequently invest in securities issued by other corporations. Some investments are acquired to secure a favorable business relationship with another company. On the other hand, others are...

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Q: Microsoft’s 2015 10-K includes the following information in Note 20

Microsoft’s 2015 10-K includes the following information in Note 20—Accumulated Other Comprehensive Income relevant to its available-for-sale investments: Require...

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Q: The following disclosure note appeared in the December 26, 2015,

The following disclosure note appeared in the December 26, 2015, annual report of the Intel Corporation. Note 5: Cash and Investments (partial) Available-for-sale investments as of December 26, 2015,...

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Q: At a recent luncheon, you were seated next to Mr.

At a recent luncheon, you were seated next to Mr. Hopkins, the president of a local company that manufactures bicycle parts. He heard that you were a CPA and made the following comments to you: Why is...

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Q: Target Corporation prepares its financial statements according to U.S.

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available Connect. This materia...

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Q: The Playa Company uses a periodic inventory system. The following information

The Playa Company uses a periodic inventory system. The following information is taken from Playa’s records. Certain data have been intentionally omitted ($ in thousands). Required...

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