Questions from Intermediate Accounting


Q: Cardinal Paz Corp. carries an account in its general ledger called

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Instructions (Round...

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Q: On January 1, 2012, Barwood Corporation granted 5,000

On January 1, 2012, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood’s $5 par value common stock at $50 per share at any time d...

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Q: Define a provision, and give three examples of a provision.

Define a provision, and give three examples of a provision.

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Q: Dumars Corporation reports in the current liability section of its balance sheet

Dumars Corporation reports in the current liability section of its balance sheet at December 31, 2012 (its year-end), short-term obligations of $15,000,000, which includes the current portion of 12% l...

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Q: Describe how a company would classify debt that includes covenants. What

Describe how a company would classify debt that includes covenants. What conditions must exist in order to depart from the normal rule?

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Q: Dagwood Inc. recently noted that its 4% preferred stock and

Dagwood Inc. recently noted that its 4% preferred stock and 4% participating preferred stock, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating pr...

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Q: On December 31, 2012, Alexander Company had $1,

On December 31, 2012, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2013. On January 21, 2013, the company issued 25,000 shares of its common stock f...

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Q: Cedarville Company pays its office employee payroll weekly. Below is a

Cedarville Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed...

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Q: What are three examples of estimates that are used in accounting that

What are three examples of estimates that are used in accounting that are not contingencies? Can you explain why they are not considered contingencies?

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Q: An important consideration in evaluating current liabilities is a company’s operating cycle

An important consideration in evaluating current liabilities is a company’s operating cycle. The operating cycle is the average time required to go from cash to cash in generating re...

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