Question 14
At December 31, 2004, Kale Co. had the following balances in the accounts it maintains at First State Bank: Kale classifies investments with original maturities of three months or less as cash equivalents. In its December 31, 2004 balance sheet, what amount should Kale report as cash and cash equivalents?
Question 15
Gar Co. factored its receivables without recourse with Ross Bank. Gar received cash as a result of this transaction, which is best described as a
Question 16
A material overstatement in ending inventory was discovered after the year-end financial statements of a company were issued to the public. What effect did this error have on the year-end financial statements?
Question 17
The following costs pertain to Den Co.' s purchase of inventory: What amount should Den record as the cost of inventory as a result of this purchase?
Question 18
Loft Co. reviewed its inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or market: What amount should