Questions from Intermediate Accounting

Q: Explain the significance of a company meeting or beating analysts’ earnings forecasts

Explain the significance of a company meeting or beating analysts’ earnings forecasts for many quarters in a row.

Q: Quality Enterprises Inc. issued its 2012 financial statements on February 22

Quality Enterprises Inc. issued its 2012 financial statements on February 22, 2013. The auditors expressed a “clean” opinion in the audit report. On July 14, 2013, the company filed for bankruptcy as...

Q: Upon inspecting the books and records for Wernli Company for the year

Upon inspecting the books and records for Wernli Company for the year ended December 31, 2013, you find the following data: (a) A receivable of $640 from Hatch Realty is determined to be uncollectible...

Q: The “due process” system of the FASB encourages public input

The “due process” system of the FASB encourages public input into the standard-setting process. It invites written comments, holds public hearings, and often changes proposed standards in response to...

Q: For each situation, reconstruct the adjusting entry that was made to

For each situation, reconstruct the adjusting entry that was made to arrive at the ending balance. Assume statements and adjusting entries are prepared only once each year. 1. Prepaid Insurance: Balan...

Q: FASB ASC Subtopic 715-60 requires companies to recognize a liability

FASB ASC Subtopic 715-60 requires companies to recognize a liability for their obligation to pay for retirees’ health care. Prior to this rule, most companies recognized no liability for their health...

Q: Accounts of Pioneer Heating Corporation at the end of the first year

Accounts of Pioneer Heating Corporation at the end of the first year of operations showed the following balances. In addition, prepaid operating expenses are $4,000, and accrued sales commissions paya...

Q: Tom Obstinate is disgusted by all of the emphasis being put on

Tom Obstinate is disgusted by all of the emphasis being put on international accounting issues. Tom plans to practice accounting in the United States, with U.S. companies, using U.S. GAAP. Accordingly...

Q: Give three common examples of contra accounts. Explain why contra accounts

Give three common examples of contra accounts. Explain why contra accounts are used.

Q: Below is the trial balance for Boudreaux Company as of December 31

Below is the trial balance for Boudreaux Company as of December 31. Consider the following additional information: (a) Boudreaux uses a perpetual inventory system. (b) The prepaid expenses were paid...