Which of the following is NOT a change in reporting entity?
a. A company acquires a subsidiary that is to be accounted for as a purchase.
b. A company presents consolidated or combined statements in place of statements of individual companies.
c. A company changes the companies included in combined financial statements.
d. A company changes the subsidiaries for which consolidated statements are presented.
A
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On December 1, 2012, Richards Company sold some machinery to Fleming Company. The two companies entered into an installment sales contract at a predetermined interest rate. The contract required four equal annual payments with the first payment due on December 1, 2012, the date of the sale. What present value concept is appropriate for this situation?
a. Future amount of an annuity of 1 for four periods b. Future amount of 1 for four periods c. Present value of an ordinary annuity of 1 for four periods d. Present value of an annuity due of 1 for four periods.
Which of the following amounts could differ if a company, using the LIFO inventory costing method, shifts from a periodic inventory system to a perpetual inventory system?
A) ending merchandise inventory B) sales revenue C) purchases D) purchase returns