Questions from Intermediate Accounting

Q: Penner Corp. is preparing the management discussion and analysis portion of

Penner Corp. is preparing the management discussion and analysis portion of the annual report to shareholders. It wishes to provide a visual depiction of the proportion of the total revenue each segme...

Q: Explain how options pricing models are useful in determining fair value.

Explain how options pricing models are useful in determining fair value. What are the inputs to such models?

Q: Discuss whether and how financial instruments are disclosed under IFRS, and

Discuss whether and how financial instruments are disclosed under IFRS, and the reason for the disclosure requirement.

Q: In July 10, 2017, Nguyen Ltd. sold $1

In July 10, 2017, Nguyen Ltd. sold $1.7 million worth of compressors to retailers on account. Nguyen had paid $960,000 for these compressors. Nguyen grants the right to return compressors that do not...

Q: Wynn Corp. offers a set of building blocks to customers who

Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn cereal, along with $1. Wynn purchased 100,000 building block sets in 2017 for $2.50 each, and paid for them by...

Q: Kea Limited provides a defined contribution pension plan for its employees.

Kea Limited provides a defined contribution pension plan for its employees. The plan requires the company to deduct 5% of each employee’s gross pay for each payroll period as the employee contribution...

Q: At December 31, 2017, Lawton & Border Inc. (

At December 31, 2017, Lawton & Border Inc. (L&B) is involved in a lawsuit. Under existing standards in IAS 37, (a) prepare the December 31 entry assuming it is probable (and very likely) that L&B will...

Q: Siddle Corp. was recently sued by a competitor for patent infringement

Siddle Corp. was recently sued by a competitor for patent infringement. Lawyers have determined that it is probable (and very likely) that Siddle will lose the case, and that Siddle will have to pay b...

Q: Yuen Corporation shows the following financial position and results for the three

Yuen Corporation shows the following financial position and results for the three years ended December 31, 2017, 2018, and 2019 (in thousands): For each year, calculate the current ratio, quick rati...

Q: Access IAS 34 (Interim Financial Reporting), and the interim financial

Access IAS 34 (Interim Financial Reporting), and the interim financial report for the six-month period ended June 30, 2015, for Nestlé SA from the company’s website (www.nestle.com). Instructions: (a...