Questions from Intermediate Accounting

Q: In 2014, Amirante Corporation had pretax financial income of $168

In 2014, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes...

Q: At the end of the current year, Pociek Co. has

At the end of the current year, Pociek Co. has prior service cost of $9,150,000. Where should the prior service cost be reported on the balance sheet?  

Q: What is the nature of a “sale-leaseback” transaction

What is the nature of a “sale-leaseback” transaction?  

Q: An entry to record Purchases and related Accounts Payable of $13

An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on December 23, 2015, was recorded in January 2016. This merchandise was not included in inventory at D...

Q: What are some of the arguments in favor of using the indirect

What are some of the arguments in favor of using the indirect (reconciliation) method as opposed to the direct method for reporting a statement of cash flows?

Q: Discuss the similarities and the differences between convertible debt and debt issued

Discuss the similarities and the differences between convertible debt and debt issued with stock warrants.

Q: What is the difference between a CPA’s unqualified opinion or “clean

What is the difference between a CPA’s unqualified opinion or “clean” opinion and a qualified one?

Q: Discuss why options and warrants may be considered potentially dilutive common shares

Discuss why options and warrants may be considered potentially dilutive common shares for the computation of diluted earnings per share.

Q: Identify and briefly describe the two methods generally employed to account for

Identify and briefly describe the two methods generally employed to account for the cash received in situations where the collection of the sales price is not reasonably assured.  

Q: Oxford Corporation began operations in 2014 and reported pretax financial income of

Oxford Corporation began operations in 2014 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 20...