Questions from Financial Accounting

Q: For each of the following cases, state whether the statement is

For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume that prices are rising. (a) Results in a higher quality of earnings ratio. (b) Results in higher phant...

Q: Nona Hat Shop received a shipment of hats for which it paid

Nona Hat Shop received a shipment of hats for which it paid the wholesaler $2,940. The price of the hats was $3,000, but Nona was given a $60 cash discount and required to pay freight charges of $75....

Q: The website www.cpa2biz.com has an article dated February

The website www.cpa2biz.com has an article dated February 4, 2010, by Mary Schaeffer entitled “Emerging Issues: Demise of Paper Checks.” Instructions Go to the website and do a search on the article t...

Q: The following information pertains to Lance Company. 1. Cash

The following information pertains to Lance Company. 1. Cash balance per bank, July 31, $7,328. 2. July bank service charge not recorded by the depositor $38. 3. Cash balance per books, July 31, $7,36...

Q: A Bastille Corporation prepares monthly cash budgets. Here are relevant data

A Bastille Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2017. All sales and purchases are on account. Budgeted collections and disbursement data are gi...

Q: Rianna.com uses the allowance method of accounting for bad debts

Rianna.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Instructions (a) Calculate the total estimated bad d...

Q: Chien Corporation is a recently formed business selling the “World’s Best

Chien Corporation is a recently formed business selling the “World’s Best Doormat.” The corporation is selling doormats faster than Chien can make them. It has been selling the product on a credit bas...

Q: Milton Company closes its books on its July 31 year-end

Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. N...

Q: LaTour Inc. is based in France and prepares its financial statements

LaTour Inc. is based in France and prepares its financial statements (in euros) in accordance with IFRS. In 2017, it reported cost of goods sold of €578 million and average inventory of €154 million....

Q: Tawnya Dobbs, the vice president of sales for Tropical Pools and

Tawnya Dobbs, the vice president of sales for Tropical Pools and Spas, wants the company’s credit department to be less restrictive in granting credit. “How can we sell anything when you guys won’t ap...