Questions from Financial Accounting

Q: Explain the difference between the “nature-of-expense”

Explain the difference between the “nature-of-expense” and “function-of-expense” classifications.

Q: Discuss how the Sarbanes-Oxley Act has increased the importance of

Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top managers of a company.

Q: How are bad debts accounted for under the direct write-off

How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method?

Q: These items are taken from the financial statements of Longhorn Co.

These items are taken from the financial statements of Longhorn Co. at December 31, 2017. Buildings……………………………………….……$105,800 Accounts receivable…………………………………12,600 Prepaid insurance………………………………..……3,...

Q: (a) Geena Lowe believes that the analysis of financial statements

(a) Geena Lowe believes that the analysis of financial statements is directed at two characteristics of a company: liquidity and profitability. Is Geena correct? Explain. (b) Are short-term creditors,...

Q: Condensed balance sheet and income statement data for Danke Corporation are presented

Condensed balance sheet and income statement data for Danke Corporation are presented as follows. Instructions Compute these values and ratios for 2016 and 2017. (a) Earnings per share. (b) Working ca...

Q: Three years ago, Karen Suez and her brother-in-

Three years ago, Karen Suez and her brother-in-law Reece Jones opened Gigasales Department Store. For the first 2 years, business was good, but the following condensed income statement results for 201...

Q: Owen Wise, Inc. reported the following in its 2017 and

Owen Wise, Inc. reported the following in its 2017 and 2016 income statements. Determine the company’s gross profit rate and profit margin for both years. Discuss the cause for chang...

Q: The July 15, 2010, edition of CFO.com contains

The July 15, 2010, edition of CFO.com contains an article by Marie Leone entitled “Sucking the LIFO out of Inventory.” Instructions Read the article, which can be found at www.cfo.com/printable/articl...

Q: On December 1, Premium Electronics has three DVD players left in

On December 1, Premium Electronics has three DVD players left in stock. All are identical, all are priced to sell at $85. One of the three DVD players left in stock, with serial #1012, was purchased o...