Questions from Intermediate Accounting

Q: The adjusted trial balance of Pacific Scientific Corporation on December 31,

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2018, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue,...

Q: Accountants very often are required to make estimates, and very often

Accountants very often are required to make estimates, and very often those estimates prove incorrect. In what period(s) is the effect of a change in an accounting estimate reported?

Q: The correction of a material error discovered in a year subsequent to

The correction of a material error discovered in a year subsequent to the year the error was made is considered a prior period adjustment. Briefly describe the accounting treatment for prior period ad...

Q: Define earnings per share (EPS). For which income statement items

Define earnings per share (EPS). For which income statement items must EPS be disclosed?

Q: Define comprehensive income. What are the two ways companies can present

Define comprehensive income. What are the two ways companies can present comprehensive income?

Q: Describe the purpose of the statement of cash flows.

Describe the purpose of the statement of cash flows.

Q: Identify and briefly describe the three categories of cash flows reported in

Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.

Q: Explain what is meant by noncash investing and financing activities pertaining to

Explain what is meant by noncash investing and financing activities pertaining to the statement of cash flows. Give an example of one of these activities.

Q: Distinguish between the direct method and the indirect method for reporting the

Distinguish between the direct method and the indirect method for reporting the results of operating activities in the statement of cash flows.

Q: Describe the potential statement of cash flows classification differences between U.

Describe the potential statement of cash flows classification differences between U.S. GAAP and IFRS.