Generally accepted accounting
derive their authority from legal court pro
derive their credibility and authority from
C. the accounting profession.
have been specified in detail in the FASB
Incorrect. GAAP derives its
SIMULATION - 2
On December 31, 2014, Green Company finished consultation services and accepted in
exchange a promissory note with a face value of $600,000, a due date of December 31,
2017, and a stated rate of 5%, with interest receivable at the
SIMULATION - 3
Gott Company adopted the dollar-value LIFO inventory method on 12/31/13. On this date, its
inventory consisted of the following items.
Number of Units
Cost Per Unit
SIMULATION 5 A
Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a
complete modernization of Dobbs's manufacturing facility. Construction was begun on
June 1, 2014 and was completed on December 31, 2014. Dobbs made th
SIMULATION - 1 A
Part (a) Compute the amount that a $40,000 investment today would accumulate
at 10% (compound interest) by the end of 6 years.
Computing the amount year by year:
Compound Interest Calculation
SIMULATION 6 A
A machine cost $800,000 on April 1, 2014. Its estimated salvage value is $80,000 and
its expected life is eight years.
Calculate the depreciation expense (to the nearest dollar) by each of the following
ETHICS CASE ASSIGNMENTS
Charlie Brown, controller for Kelly Corporation, is preparing the company's income
statement at year-end. He notes that the company lost a considerable sum on the sale
of some equipment it had decided to replace. Since the co