Questions from Intermediate Accounting

Q: What are the major advantages of notes to the financial statements?

What are the major advantages of notes to the financial statements? What types of items are usually reported in notes?

Q: Identify the two recognized lease accounting methods for lessees and distinguish between

Identify the two recognized lease accounting methods for lessees and distinguish between them.

Q: The net income for Letterman Company for 2014 was $320,

The net income for Letterman Company for 2014 was $320,000. During 2014, depreciation on plant assets was$124,000, amortization of patent was $40,000, and the company incurred a loss on sale of plan...

Q: The following comment appeared in the financial press: “Inadequate financial

The following comment appeared in the financial press: “Inadequate financial disclosure, particularly with respect to how management views the future and its role in the marketplace, has alway...

Q: Hawkins Construction Co. has a $60 million contract to construct

Hawkins Construction Co. has a $60 million contract to construct a highway overpass and cloverleaf. The total estimated cost for the project is $50 million. Costs incurred in the first year of the p...

Q: What constitutes “significant influence” when an investor’s financial interest is

What constitutes “significant influence” when an investor’s financial interest is below the 50% level?  

Q: For what reasons should the percentage-of-completion method be

For what reasons should the percentage-of-completion method be used over the completed-contract method whenever possible?

Q: Differentiate between “loss carryback” and “loss carry forward.”

Differentiate between “loss carryback” and “loss carry forward.” Which can be accounted for with the greater certainty when it arises? Why?

Q: Given the following items and amounts, compute the actual return on

Given the following items and amounts, compute the actual return on plan assets: fair value of plan assets at the beginning of the period $9,500,000; benefits paid during the period $1,400,000; contri...

Q: How should changes in the estimated unguaranteed residual value be handled by

How should changes in the estimated unguaranteed residual value be handled by the lessor?