Reference no: EM132945732

Questions -

Q1) When is revenue recognized under earnings approach?

Q2) Explain principal-agent relationship and what is the revenue for agents in this relationship?

Q3) In the consignment sale agreement, what is the revenue of the consignee?

Q4) Explain the cost to cost basis in determining the progress toward completion of service contract.

Q5) Name 3 examples of cash equivalent.

Q6) What subsequent measurement basis for receivables?

Q7) A Corporation estimates that approximately 10% of its $1 million of trade receivables outstanding will be returned or a similar adjustment will be made to the sales price. What journal entry should Astro make to show expected sales returns and allowances under ASPE?

Q8) If 25% of outstanding receivables are estimated to be uncollectible, what is the required journal entry need to be required under the allowance method?

Q9) Because of changes in the extent to which a piece of equipment is being used, A company decides to review it for possible impairment. The asset's carrying amount is $600,000 ($800,000 cost less $200,000 accumulated depreciation). The expected future undiscounted net ash flows from the use of the equipment and its later disposal are estimated to be $650,000, and its fair value is $525,000. Use the recover ability test to determine if the asset would be considered impaired under the cost recovery impairment model.

Q10) A Company receives a three-year, $10,000, zero-interest-bearing note, and the present value is known to be $7,721.80. Calculate and explain the implicit rate of interest (assumed to approximate the market rate) for the note and provide the related journal entry at the date of issuance.

Q11) B Corp. makes a loan to C Corp. and receives in exchange a $10,000, three-year note bearing interest at 10% annually. The market rate of interest for a note of similar risk is 12%. Calculate the present value of the note and prepare the journal entry to record the receipt of the note in exchange for cash equal to the fair value.

Q12) If Accounts Receivable Turnover is 7 times, what does this mean?

Q13) Explain weighted average cost formula of inventory costing formula?

Q14) At year-end, A company's ending inventory cost and net realizable value were like the following. What would be the ending inventory value to be measured?

Q15) Provide 2 examples of inventory types that are exceptions to the LC&NRV rule?

Q16) If A company had beginning inventory of $3 million, ending inventory of $3.2 million, and cost of goods sold of $8,6 million for its latest fiscal year, what is the inventory turnover ratio?

Q17) Assume that Investor company pays $19,231 on March 15 for a $20,000 six-month treasury bill that matures on September 15. The investment, purchased to yield an 8% return, is designate as an FV-NI investment. Prepare the journal entries for the initial recognition and the maturity.

Q18) A Corporation exchanges several used trucks plus cash for vacant land that might be used for a future plant site. The trucks have a combined carrying amount of $42,000 (cost of $64,000 less $22,000 of accumulated depreciation). A Corp's purchasing agent, who has had previous dealings in the second-hand market, indicates that the trucks have a fair value of $49,000. In addition to the trucks, A Corp pays $4,000 cash for the land.

Calculate the acquisition cost of the land to be recorded by A Corp, and provide the related journal entry to be recorded by A Corp?

Q19) What is the ASPE requirements for determining the depreciable amount of an PP&E asset?

Q20) For an asset with 8 year-life, what would be the double-declining-balance rate?

Q21) What is the difference between interest-bearing bonds and non-interest bearing bonds?

Q22) What are 3 measurement models for investments?

Q23) Explain significant influence in the context of equity investment.

Q24) What is the difference between amortization, depreciation, and depletion?

Q25) Provide 2 examples of PP&E impairment indicator?