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