Questions from Intermediate Accounting

Q: A private company has two debt covenants in place: 1

A private company has two debt covenants in place: 1. Maximum debt-to-equity ratio. Current and long-term liabilities, excluding future income taxes, are divided by total shareholders’ equity. 2. Mini...

Q: For each of the situations below, explain whether the company can

For each of the situations below, explain whether the company can use its preferred basis of accounting: 1. A Great Lakes shipping company based in Thunder Bay, Ontario, wishes to use U.S. dollars as...

Q: A manager of a medium-sized private company recently asked for

A manager of a medium-sized private company recently asked for your advice on the following: I’m very confused about whether our company should continue to use ASPE or convert to IFRS. Our Canadian ba...

Q: Four different unrelated Canadian corporations are described below: 1.

Four different unrelated Canadian corporations are described below: 1. Privately owned Vancouver-based Moonburst Coffee Ltd. imports coffee beans from around the world, but mainly from South America....

Q: Which measurement method would be most appropriate for the following items:

Which measurement method would be most appropriate for the following items: historical cost or current value? For current value, specify which of the three measurement bases applies. 1. Decommissionin...

Q: The reporting situations of two different companies are described below:

The reporting situations of two different companies are described below: 1. Stardust Explorations Incorporated (SEI) is seeking significant new financing for a gold and diamond mining venture in north...

Q: The CPA Canada Handbook in both Part I and Part II sets

The CPA Canada Handbook in both Part I and Part II sets out the objectives of general purpose financial statements, but companies and their managers have objectives that relate to their specific circu...

Q: Discuss the bias, objectives, and potential conflicts that may exist

Discuss the bias, objectives, and potential conflicts that may exist between the following users/groups: 1. Bank with a current ratio debt covenant and management of a public company with a bonus base...

Q: Privately owned BlueScreen Corporation is primarily a retailer of computer equipment for

Privately owned BlueScreen Corporation is primarily a retailer of computer equipment for individuals and small business. The company also develops software intended for small business applications—tha...

Q: You have been hired as the assistant in the finance department of

You have been hired as the assistant in the finance department of a medium-sized publicly traded firm. Realizing the importance of accounting to your new duties, you have recently completed an intensi...