Questions from Financial Accounting

Q: When is it appropriate to use acquisition/consolidation, equity,

When is it appropriate to use acquisition/consolidation, equity, or fair value methods for an investment in another corporation?

Q: How do the accounting methods used for passive investments and investments involving

How do the accounting methods used for passive investments and investments involving a significant influence differ?

Q: How do the accounting methods used for investments involving a significant influence

How do the accounting methods used for investments involving a significant influence and investments involving control differ?

Q: Describe how transportation costs to obtain inventory (freight-in)

Describe how transportation costs to obtain inventory (freight-in) are accounted for by a merchandising company using a perpetual inventory system. Explain the reasoning behind this accounting treatme...

Q: Explain why the income statement, statement of retained earnings, and

Explain why the income statement, statement of retained earnings, and statement of cash flows would be dated “For the Year Ended December 31, 2018,” whereas the balance sheet would be dated “At Decemb...

Q: What is the main distinction between perpetual and periodic inventory systems?

What is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why

Q: Why is a physical count of inventory necessary in a periodic inventory

Why is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual inventory system?

Q: What is the difference between FOB shipping point and FOB destination?

What is the difference between FOB shipping point and FOB destination? How do these terms relate to the revenue principle?

Q: Describe in words the journal entries that are made in a perpetual

Describe in words the journal entries that are made in a perpetual inventory system when inventory is sold on credit.

Q: What are three goals of inventory management?

What are three goals of inventory management?