Questions from Intermediate Accounting

Q: Explain how the accounting for bad debts can be used for earnings

Explain how the accounting for bad debts can be used for earnings management.  

Q: In what accounts should the following items be classified?(

In what accounts should the following items be classified? (a) Coins and currency. (b) U.S. Treasury (government) bonds. (c) Certificate of deposit. (d) Cash in a bank that is in receivership....

Q: What is the accounts receivable turnover, and what type of information

What is the accounts receivable turnover, and what type of information does it provide?  

Q: You are evaluating Woodlawn Racetrack for a potential loan. An examination

You are evaluating Woodlawn Racetrack for a potential loan. An examination of the notes to the financial statements indicates restricted cash at year-end amounts to $100,000. Explain how you would u...

Q: Distinguish among the following: (1) A general checking

Distinguish among the following: (1) A general checking account, (2) An imprest bank account, and (3) A lockbox account.  

Q: What are the general rules for measuring and recognizing gain or loss

What are the general rules for measuring and recognizing gain or loss by both the debtor and the creditor in an impairment?  

Q: Kraft Enterprises owns the following assets at December 31, 2014.

Kraft Enterprises owns the following assets at December 31, 2014. What amount should be reported as cash?  

Q: On October 1, 2014, Chung, Inc. assigns $

On October 1, 2014, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables a...

Q: Wood Incorporated factored $150,000 of accounts receivable with Engram

Wood Incorporated factored $150,000 of accounts receivable with Engram Factors Inc. on a without recourse basis. Engram assesses a 2% finance charge of the amount of accounts receivable and retains...

Q: Use the information in BE7-9 for Wood. Assume that

Use the information in BE7-9 for Wood. Assume that the receivables are sold with recourse. Prepare the journal entry for Wood to record the sale, assuming that the recourse liability has a fair valu...