ACCRUAL ACCOUNTING REVENUE AND EXPENSE PRACTICE PROBLEMS
If cash collections are reasonably certain, a defense contractor working on a $50 million longterm government contract with work spread evenly over 5 years will not record an
Long Lived Assets Pepsi
Briefly answer the following questions using the attached excerpts from PepsiCos annual report
as necessary. All numbers in the questions below and in the exhibits are in millions.
PepsiCo, Inc. (NYSE:PEP) manufactures, markets, an
CLASS 2: INCOME STATEMENT, CASH FLOW STATEMENT AND RETAINED
EARNINGS PRACTICE PROBLEMS SOLUTION
The primary source of cash for an established business should be cash flow from operating
Retained earnings reported on the balance
Case 5 Inventory
Kellogg Company (NYSE: K) engages in the manufacture and marketing of ready-to-eat cereal and
convenience foods. The company sells its cereal products under the Kellogg s brand name principally
Zynga: Revenue Recognition
1) Does Zynga charge its customers to play the companys games? How does Zynga earn
Answer: No, Zynga operates their games as live services that allow players to play for free.
CLASS 1: OVERVIEW AND BALANCE SHEET PRACTICE PROBLEMS SOLUTION
A companys fiscal year end date is the same as the calendar year end date. FALSE
Generally accepted accounting principles are identical world-wide. FALSE
The balance sheet is dated
Stockholders Equity Practice Problems Solution
True or False
Par value is an arbitrary amount set by the company for each share of stock.
Stockholders equity on the balance sheet is accounted for at current market value
A re-issuance o
Financial Reporting Mechanics
by Thomas R. Robinson, CPA, jan Hendrik van Greuning, CPA, Karen
O'Connor Rubsam, CPA, Elaine Henry, CPA, and Michael A. Broihahn, CPA
The candidate should be able to:
a explain the relatio
Financial Reporting Standards
by Elaine Henry, CFA, Jan Hendrik van Greuning, CPA, and Thomas R.
The candidate should be able to:
a describe the objective of financial statements and the importance
Liabilities Practice Problems Solution
The term future amount means the sum of a series of future cash flows. FALSE, future amount
is the amount to which an account will grow if compound interest is added
An annuity is a stream of cash flows o
Accounts Receivable Practice Problems Solution
1. The allowance for doubtful accounts can temporarily have a debit balance. TRUE (can
occur after write-offs but before bad debt adjusting entry)
2. Total accounts receivable is used on the balanc
Long Lived Assets Practice Problems Solution
1. If a firm lengthens a fixed assets estimated useful life, the total amount of depreciation
recorded over the life of the asset will decrease. FALSE. Depreciation expense each
year will decrease b
Accounting Process Practice Problems Solution
T-accounts focus on account balances while journal entries focus on transactions. TRUE
The right side of a T-account always increases an account balance and the left side of a Taccount always decrea
2012 SAMPLE EXAM QUESTIONS
PART I - Answer True (T) or False (F) in the space provided.
_1. The income statement reports where cash came from and how it was used.
_2. The income statement is dated over the period of time covered, such
Processing Accounting Information
The balance sheet accounts of Build-A-Bear Workshop (BBW) as of December 31, 2010 are:
PROPERTY & EQUIPMENT
ACCOUNTS PAYABLE & OTHER LIABILITIES
Mini-Case 1: JetBlue Airways - Overview of Financial Statements
What is the nature of JetBlues business? That is, based on reading the annual report, how does
JetBlue earn revenue?
Case 3: Accounts Receivable
HQ Sustainable Maritime
1. The balance sheet reports Accounts receivable, net. What are receivables net of? Why
does GAAP require this accounting treatment rather than using gross acco
Liabilities Practice Problems
The term future amount means the sum of a series of future cash flows.
An annuity is a stream of cash flows occurring one period apart that are equal in amount.
Because Harley-Davidson can never know how much it w
Inventory Practice Problems Solution
1. A firm has five units of inventory, two units purchased for $2 each and three units purchased
for $3 each. Thus, the weighted average cost per unit is $2.50 [($2 + $3)/2].
FALSE. The weighted average cos