Questions from Intermediate Accounting

Q: What effect do stock dividends or stock splits have on the computation

What effect do stock dividends or stock splits have on the computation of the weighted-average number of shares outstanding?

Q: Your classmate Kate believes that the equity method is applied with a

Your classmate Kate believes that the equity method is applied with a strict application of the “20%” rule. Do you agree? Explain.

Q: What are the two types of losses that can become evident in

What are the two types of losses that can become evident in accounting for long-term contracts? What is the nature of each type of loss? How is each type accounted for?

Q: Differentiate between investing activities, financing activities, and operating activities.

Differentiate between investing activities, financing activities, and operating activities.

Q: What controversy relates to the accounting for net operating loss carry forwards

What controversy relates to the accounting for net operating loss carry forwards?

Q: What is the meaning of “corridor amortization”?

What is the meaning of “corridor amortization”?  

Q: What are “initial direct costs” and how are they accounted

What are “initial direct costs” and how are they accounted for?

Q: In January 2014, installation costs of $6,000 on

In January 2014, installation costs of $6,000 on new machinery were charged to Maintenance and Repairs Expense. Other costs of this machinery of $30,000 were correctly recorded and have been depreciat...

Q: Dierdorf Inc., a closely held corporation, has decided to go

Dierdorf Inc., a closely held corporation, has decided to go public. The controller, Ed Floyd, is concerned with presenting interim data when a LIFO inventory valuation is used. What problems are enco...

Q: Define the following terms.(a) Basic earnings per

Define the following terms. (a) Basic earnings per share. (b) Potentially dilutive security. (c) Diluted earnings per share. (d) Complex capital structure. (e) Potential common stock.