Latest Questions & Answers

Q: EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system

EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law...

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Q: In 2018, CPS Company changed its method of valuing inventory from

In 2018, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2017, CPS’s inventories were $32 million (FIFO). CPS’s records indicated t...

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Q: The Elegant Software Company recently completed the development and testing of a

The Elegant Software Company recently completed the development and testing of a new software program that provides the ability to transfer data from among a variety of operating systems. The company...

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Q: Pier 1 Imports, Inc., is a leading retailer of domestic

Pier 1 Imports, Inc., is a leading retailer of domestic merchandise and home furnishings. The company’s 2016 fixed-asset turnover ratio, using the average book value of property, plant, and equipment...

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Q: Siemens AG, a German company, is Europe’s largest engineering and

Siemens AG, a German company, is Europe’s largest engineering and electronics company. The company prepares its financial statements according to IFRS. Required: How does the company account for rese...

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Q: Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals

Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expenditures are made for the development of new drugs and the improvement of ex...

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Q: Thomas Plastics is in the process of developing a revolutionary new plastic

Thomas Plastics is in the process of developing a revolutionary new plastic valve. A new division of the company was formed to develop, manufacture, and market this new product. As of year-end (Decemb...

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Q: A company began its fiscal year with inventory of $186,

A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. What was the amount of ending inventory?

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Q: Clonal, Inc., a biotechnology company, developed and patented a

Clonal, Inc., a biotechnology company, developed and patented a diagnostic product called Trouver. Clonal purchased some research equipment to be used exclusively for Trouver and subsequent research p...

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Q: Prior to 1974, accepted practice was for companies to either expense

Prior to 1974, accepted practice was for companies to either expense or capitalize R&D costs. In 1974, the FASB issued a Standard that requires all research and development costs to be charged to expe...

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