Questions from Intermediate Accounting

Q: How do the provisions of IAS 2 differ from the lower-

How do the provisions of IAS 2 differ from the lower-of-cost-or-market rule contained in U.S. GAAP?

Q: The income statement provides detail as to transactions that occurred during the

The income statement provides detail as to transactions that occurred during the period relating to what balance sheet account? The statement of cash flows provides detail as to the transactions that...

Q: What is wrong with the statement, “Cash flow is equal

What is wrong with the statement, “Cash flow is equal to net income plus depreciation”?

Q: Identify three different indexes that can be used in valuing a new

Identify three different indexes that can be used in valuing a new LIFO layer with dollar-value LIFO. Which index is most consistent with the LIFO assumption?

Q: Why is an adjustment made on the balance sheet date to reflect

Why is an adjustment made on the balance sheet date to reflect exchange rate changes?

Q: Indicate whether each of the following items would be classified as

Indicate whether each of the following items would be classified as (1) An operating activity, an investing activity, or a financing activity or (2) As a noncash transaction or noncash item. (a) Cash...

Q: For each of the following transactions, events, or circumstances,

For each of the following transactions, events, or circumstances, indicate whether the recognition criteria for revenues and gains are met and provide support for your answer. (a) An order of $25,000...

Q: State how each of the following items would be reflected on a

State how each of the following items would be reflected on a statement of cash flows. (a) Securities classified as available for sale were purchased for $4,200. (b) Buildings were acquired for $210,0...

Q: Indicate which of the following transactions or events gives rise to the

Indicate which of the following transactions or events gives rise to the recognition of revenue in 2013 under the accrual basis of accounting. If revenue is not recognized, what account, if any, is cr...

Q: The accountant for Alpine Hobby Stores prepared the following selected information for

The accountant for Alpine Hobby Stores prepared the following selected information for the year ended December 31, 2013: Equipment with a book value of $18,000 was sold for $16,000 cash. The origina...