Questions from Intermediate Accounting

Q: The construction in progress account is used to accumulate all costs of

The construction in progress account is used to accumulate all costs of construction. What additional item is included in this account when percentage-of-completion accounting is followed?

Q: Why are LIFO and average cost more complicated with a perpetual inventory

Why are LIFO and average cost more complicated with a perpetual inventory system than with a periodic system?

Q: Is the purchase of securities an operating activity or an investing activity

Is the purchase of securities an operating activity or an investing activity? Explain.

Q: What kinds of companies would be least likely to use LIFO?

What kinds of companies would be least likely to use LIFO? Explain.

Q: What is the current status of LIFO under IASB standards?

What is the current status of LIFO under IASB standards?

Q: How is interest paid classified in a statement of cash flows under

How is interest paid classified in a statement of cash flows under the provisions of FASB ASC Topic 230?

Q: On average, which number is larger, net income or cash

On average, which number is larger, net income or cash from operations? Explain.

Q: What differences result from applying lower of cost or market to individual

What differences result from applying lower of cost or market to individual inventory items instead of to the inventory as a whole?

Q: Changes in the balance sheet account balances for the Bubble Bobble Co

Changes in the balance sheet account balances for the Bubble Bobble Co. during 2013 follow. Dividends declared during 2013 were $18,000. Calculate the net income for the year assuming that no transact...

Q: Installment sales contracts generally include interest. Contrast the method of recognizing

Installment sales contracts generally include interest. Contrast the method of recognizing interest revenue from the method used to recognize the gross profit on the sale.