Questions from Accounting Principles


Q: At April 30, 2020, Hackney Building Products’ year-end

At April 30, 2020, Hackney Building Products’ year-end, the balance sheet showed PPE information as detailed in the schedule below. The company calculates depreciation for partial pe...

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Q: On February 3, 2020, Secure Software Group purchased the patent

On February 3, 2020, Secure Software Group purchased the patent for a new software for cash of $220,800. The company expects the software to be sold over the next five years and uses the straight-line...

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Q: Keith Scott and David Dawson agreed to share the annual profit or

Keith Scott and David Dawson agreed to share the annual profit or losses of their corporate law partnership as follows: If the partnership earned a profit, the first $60,000 would be allocated 40% to...

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Q: Jake, Sacha, and Brianne own a tour company called Adventure

Jake, Sacha, and Brianne own a tour company called Adventure Sports. The partners share profit and losses in a 1:3:4 ratio. After lengthy disagreements among the partners and several unprofitable peri...

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Q: Fargo Inc. showed the following profit statement information for its first

Fargo Inc. showed the following profit statement information for its first three years of operations: Partial information regarding Fargo’s equity for the past three years follo Requ...

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Q: The following adjusted trial balance information (with accounts in alphabetical order

The following adjusted trial balance information (with accounts in alphabetical order) for Willis Tour Co. Inc. as at December 31, 2020, was made available after its second year of operations: Require...

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Q: Interior Design Company specializes in home staging consulting services and sells furniture

Interior Design Company specializes in home staging consulting services and sells furniture built by European craftsmen. The following six-column table contains the company’s unadjus...

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Q: In the chapter-opening vignette, it was mentioned that Roots

In the chapter-opening vignette, it was mentioned that Roots Canada had a significant increase in year over year EPS for 2017. Why should investors be evaluating profitability ratios such as EPS and g...

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Q: Which items are usually assigned a value of 100% on a

Which items are usually assigned a value of 100% on a common-size comparative balance sheet and a common size comparative income statement?

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Q: Why is working capital given special attention in the process of analyzing

Why is working capital given special attention in the process of analyzing balance sheets?

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