Questions from Survey Accounting

Q: What different kinds of expenditures might be included in the recorded cost

What different kinds of expenditures might be included in the recorded cost of a building?

Q: What type of transaction is a cash payment to creditors? How

What type of transaction is a cash payment to creditors? How does this type of transaction affect the accounting equation?

Q: List the three categories of contingent liabilities.

List the three categories of contingent liabilities.

Q: Are contingent liabilities recorded on a company’s books? Explain.

Are contingent liabilities recorded on a company’s books? Explain.

Q: What is the difference in accounting procedures for a liability that is

What is the difference in accounting procedures for a liability that is probable and estimable and one that is reasonably possible but not estimable?

Q: What type of liabilities are not recorded on a company’s books?

What type of liabilities are not recorded on a company’s books?

Q: What does the term warranty mean?

What does the term warranty mean?

Q: What effect does recognizing future warranty obligations have on the balance sheet

What effect does recognizing future warranty obligations have on the balance sheet? On the income statement?

Q: a. Discuss the requirements of Section 404 of the Sarbanes–

a. Discuss the requirements of Section 404 of the Sarbanes–Oxley Act and how it relates to COSO. b. These rules apply to what type of companies?

Q: When is warranty cost reported on the statement of cash flows?

When is warranty cost reported on the statement of cash flows?