Questions from Intermediate Accounting

Q: (a) What are the three cost elements entering into work

(a) What are the three cost elements entering into work in process and finished goods? (b) What items enter into manufacturing overhead?

Q: A campus bookstore has a computerized inventory system. Is it more

A campus bookstore has a computerized inventory system. Is it more likely that the system is a periodic system or a perpetual system? Explain.

Q: Would you expect to find a perpetual or a periodic inventory system

Would you expect to find a perpetual or a periodic inventory system used in each of the following situations? (a) Diamond ring department of a jewelry store (b) Computer department of a college bookst...

Q: What acquisition costs are included in (a) Copyrights,

What acquisition costs are included in (a) Copyrights, (b) Franchises, and (c) Trademarks?

Q: The following expenditures were incurred by Peterson Enterprises Co. in 2013

The following expenditures were incurred by Peterson Enterprises Co. in 2013: Purchase of land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q: Under what conditions are goods in transit legally reported as inventory by

Under what conditions are goods in transit legally reported as inventory by the (a) Seller? (b) Buyer?

Q: Under what circumstances does cash flow from operations offer a clearer picture

Under what circumstances does cash flow from operations offer a clearer picture of a company’s performance than does net income?

Q: What criteria must be met for an item to be considered a

What criteria must be met for an item to be considered a cash equivalent in preparing a statement of cash flows?

Q: What are the three categories in a statement of cash flows?

What are the three categories in a statement of cash flows? What types of items are included in each?

Q: Either the direct method or the indirect method may be used to

Either the direct method or the indirect method may be used to report cash flows from operating activities. What is the difference in approach for the two methods?