Questions from Intermediate Accounting

Q: Explain the difference between the retail inventory method using LIFO and the

Explain the difference between the retail inventory method using LIFO and the dollar-value LIFO retail method.

Q: When a company changes its inventory method to LIFO, an exception

When a company changes its inventory method to LIFO, an exception is made for the way accounting changes usually are reported. Explain the difference in the accounting treatment of a change to the LIF...

Q: In the application of the equity method, how should dividends from

In the application of the equity method, how should dividends from the investee be accounted for? Why?

Q: Explain the accounting treatment of material inventory errors discovered in an accounting

Explain the accounting treatment of material inventory errors discovered in an accounting period subsequent to the period in which the error is made.

Q: Identify any differences between U.S. GAAP and IFRS when

Identify any differences between U.S. GAAP and IFRS when applying the lower of cost or net realizable value rule to inventory valuation.

Q: On April 17, 2018, the Loadstone Mining Company purchased the

On April 17, 2018, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,00...

Q: Bell International can estimate the amount of loss that will occur if

Bell International can estimate the amount of loss that will occur if a foreign government expropriates some company property. Expropriation is considered reasonably possible. How should Bell report t...

Q: In November 2018, the Brunswick Company signed two purchase commitments.

In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 10,000 units of inventory at $10 per unit by December 15, 2018. The second...

Q: Define purchase commitments. What is the advantage(s) of

Define purchase commitments. What is the advantage(s) of these agreements to buyers?

Q: Explain how purchase commitments are recorded for the lower of contract price

Explain how purchase commitments are recorded for the lower of contract price or market price.