Questions from Intermediate Accounting

Q: Explain the meaning of a temporary difference as it relates to deferred

Explain the meaning of a temporary difference as it relates to deferred tax computations, and give three examples.

Q: The meaning of the term “fund” depends on the context

The meaning of the term “fund” depends on the context in which it is used. Explain its meaning when used as a noun. Explain its meaning when it is used as a verb.

Q: Ballard Company rents a warehouse on a month-to-month

Ballard Company rents a warehouse on a month-to-month basis for the storage of its excess inventory. The company periodically must rent space whenever its production greatly exceeds actual sales. For...

Q: Identify and describe the approach the FASB requires for reporting changes in

Identify and describe the approach the FASB requires for reporting changes in accounting principles.

Q: What type of disclosure or accounting do you believe is necessary for

What type of disclosure or accounting do you believe is necessary for the following items? (a) Because of a general increase in the number of labor disputes and strikes, both within and outside the in...

Q: When is revenue recognized in the following situations: (a

When is revenue recognized in the following situations: (a) Revenue from selling products? (b) Revenue from services rendered? (c) Revenue from permitting others to use enterprise assets? (d) Revenue...

Q: At December 31, 2012, Appaloosa Corporation had a deferred tax

At December 31, 2012, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31, 2013, the deferred tax liability is $42,000. The corporation’s 2013 current tax expense is $48,000....

Q: Aamodt Music sold CDs to retailers and recorded sales revenue of $

Aamodt Music sold CDs to retailers and recorded sales revenue of $700,000. During 2012, retailers returned CDs to Aamodt and were granted credit of $78,000. Past experience indicates that the normal r...

Q: Tedesco Company changed depreciation methods in 2012 from double-declining-

Tedesco Company changed depreciation methods in 2012 from double-declining-balance to straight-line. Depreciation prior to 2012 under double-declining-balance was $90,000, whereas straight-line deprec...

Q: Keystone Corporation issued its financial statements for the year ended December 31

Keystone Corporation issued its financial statements for the year ended December 31, 2012, on March 10, 2013. The following events took place early in 2013. (a) On January 10, 10,000 shares of $5 par...