Questions from Intermediate Accounting


Q: RTL is a family-owned and operated business that prints flyers

RTL is a family-owned and operated business that prints flyers and banners. It has been in operation for over 20 years and is being passed on to the next generation. Profits from the past two years ha...

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Q: Sandolin Incorporated (SI) is a global, diversified firm whose

Sandolin Incorporated (SI) is a global, diversified firm whose shares trade on the major Canadian and U.S. stock markets. It owns numerous toll highways, several companies in the energy business, and...

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Q: Wind and Solar Inc. (WSI) is in the business

Wind and Solar Inc. (WSI) is in the business of providing electricity. The company started up in 2016. Currently, it is owned by Winifred Wind and Winston Chang. Both Winston and Winifred own 50% of t...

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Q: On-line Deals Inc. (ODI) is in the

On-line Deals Inc. (ODI) is in the business of selling things on-line. The company is currently owned by two founding partners, Jay and Wen. Due to the rise in Internet commerce, Jay and Wen are think...

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Q: Tiziana’s Foods Limited (TFL) is in the supermarket business.

Tiziana’s Foods Limited (TFL) is in the supermarket business. It is a public company and is thinking of going private (that is, buying up all of its shares that are available). The funds will come fro...

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Q: Cauchy Inc. (CI) has just had a planning meeting

Cauchy Inc. (CI) has just had a planning meeting with its auditors. There were several concerns that had been raised during the meeting regarding the draft financial statements for the December 31, 20...

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Q: Martel Industries Limited is in the mining business. The company has

Martel Industries Limited is in the mining business. The company has significant exploration activities in many countries and has started to explore and develop oil and gas properties in the past few...

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Q: Castle Leasing Corporation, which uses IFRS 16, signs a lease

Castle Leasing Corporation, which uses IFRS 16, signs a lease agreement on January 1, 2017 to lease electronic equipment to Wai Corporation, which also uses IFRS 16. The term of the non-cancellable le...

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Q: Saltworks Inc. (SI) produces salt. Its main assets

Saltworks Inc. (SI) produces salt. Its main assets are two properties that have two salt mines in them (mine 1 and mine 2). Both mines are currently in production. The salt exists in a crystalline lay...

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Q: Temple Limited is in the real estate business. After several years

Temple Limited is in the real estate business. After several years of economic growth, most of the company’s assets are now worth significantly more than the amount that is recognized on the financial...

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