Questions from Intermediate Accounting


Q: Differentiate between the direct method and the indirect method by discussing each

Differentiate between the direct method and the indirect method by discussing each method.

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Q: Presented below is information taken from a bond investment amortization schedule with

Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. Instructions (a) Indicate whethe...

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Q: Capulet Company establishes a stock-appreciation rights program that entitles its

Capulet Company establishes a stock-appreciation rights program that entitles its new president Ben Davis to receive cash for the difference between the market price of the stock and a pre-established...

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Q: On August 15, 2013, Outkast Co. invested idle cash

On August 15, 2013, Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $360. The notional value of the call option is 400 shares, and the option price...

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Q: Becker Corporation sells farm machinery on the installment plan. On July

Becker Corporation sells farm machinery on the installment plan. On July 1, 2014, Becker entered into an installment-sales contract with Valente Inc. for an 8-year period. Equal annual payments under...

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Q: The accounting records of Shinault Inc. show the following data for

The accounting records of Shinault Inc. show the following data for 2014 (its first year of operations). 1. Life insurance expense on officers was $9,000. 2. Equipment was acquired in early January fo...

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Q: Brad Dolan, a stockholder of Rhode Corporation, has asked you

Brad Dolan, a stockholder of Rhode Corporation, has asked you, the firm’s accountant, to explain why his stock warrants were not included in diluted EPS. In order to explain this situation, you must b...

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Q: Briefly discuss the convergence efforts that are under way by the IASB

Briefly discuss the convergence efforts that are under way by the IASB and FASB in the area of dilutive securities and earnings per share.

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Q: Briefly describe some of the similarities and differences between GAAP and IFRS

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for leases.

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Q: As a certified public accountant, you have been contacted by Joe

As a certified public accountant, you have been contacted by Joe Davison, CEO of Sports-Pro Athletics, Inc., a manufacturer of a variety of athletic equipment. He has asked you how to account for the...

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