CLASS CONFERENCES: CONCEPTS FOR ANALYSIS Week #6 Chapter 18 (CA 18-9): Revenue Recognition Membership Fees Question: Midwest Health Club offers one-year memberships. Membership fees are due in full at the beginning of the individual membership period. As
CONCEPTS FOR ANALYSIS Week #4 Chapter 16 (CA 16-2): Ethical IssuesCompensation Plan
Question: The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan are linked to gr
CONCEPTS FOR ANALYSIS Week #2 Chapter 14 (CA 14-6): Bond Issues
Question: Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita is in dire ne
BRIEF EXERCISE 13-4 (a) Since both criteria are met (intent and ability), none of the $500,000 would be reported as a current liability. The entire amount would be reported as a long-term liability.
Because repayment of the note payable required the u
CONCEPTS FOR ANALYSIS Week #5 Chapter 17 (CA 17-7): Fair Value
Question: Addison Manufacturing holds a large portfolio of debt and equity securities as an investment. The fair value of the portfolio is greater than its original cost, ev
1. Many businesses lease substantial portions of the property and equipment they use in their business organization as an alternative to ownership. Because leasing provides some financial, operating, and risk advantages over ownership, it h
1. Chapter 20 discusses the various aspects of accounting for the cost of pension plans. Accounting for pension costs is somewhat complicated because of the variety of social concepts, legal considerations, actuarial techniques, income tax
1. Chapter 19 addresses the issues related to accounting for income taxes. Taxable income is computed in accordance with prescribed tax regulations and rules, whereas accounting income is measured in accordance with generally a
1. One of the most difficult issues facing accountants concerns the recognition of revenue by a business organization. Although general rules and guidelines exist, the significant variety of marketing methods for products and services make
1. The problems of accounting for investments involve measurement, recognition, and disclosure. Investments are generally classified as either debt securities or equity securities. Chapter 17 covers both temporary and long-term investments.
1. Chapter 16 examines the issues related to accounting for dilutive securities at date of issuance and at time of conversion. Also, the impact of the computation of earnings per share is presented. The significance attached to the earnings
1. Chapter 15 focuses on the stockholders equity section of the corporate form of business organization. Stockholders equity represents the amount that was contributed by the shareholders and the portion that was earned and retained by the
*Note:All asterisked (*) items relate to material contained in the Appendix to the chapter.
1. Chapter 14 presents a discussion of the issues related to long-term liabilities. Long-term debt consists of probable future sacrifices of economi
1. Chapter13presentsadiscussionofthenatureandmeasurementofitemsclassifiedonthe balance sheet as current liabilities. Attention is focused on the mechanics involved in recordingcurrentliabilitiesandfinancialstatementdisclosurerequi
CONCEPTS FOR ANALYSIS Week#3 Chapter15(CA151):PreemptiveRightsandDilutionof Ownership
Question: Wallace Computer Company is a small closely held corporation. Eighty Percent (80%) of the stock is held by Derek Wallace, president. Of the r