Hurricane Hardware owns a trademark that they plan to renew, a patent, and a copyright. Their balance sheet also shows goodwill. Which, if any, of these assets should Hurricane amortize?

Oiler Originals buys a drill. In addition to the purchase price, Oiler also pays for shipping, installation, and insurance for the first year of operation. Which, if any, of these costs, are included in the cost of drill on balance sheet?

Sabre Swords sells a building for $500,000. The original cost of the building was $750,000 and accumulated depreciation of $200,000. What would be the gain/loss on this sale?

On November 1, Panther Produce sells fruit on account to Senator Supermarket for $1,000, terms 5/10, n/30. If Senator pays for the fruit on November 7, how much cash will Panther receive?

Mammoth Manufacturing reports sales of $500,000 and net income of $30,000. Mammoth also reports beginning total assets of $400,000 and ending total assets of $450,000. What is Mammoth’s return on assets, or ROA?

When inventory costs are rising, which inventory costing method will result in the highest profitability?

The Detroit Red Wings sell $5,000,000 worth the tickets for their home hockey games. As of December 31, the Red Wings have played 30% of their home games. How much service revenue should the Red Wings record on December 31?

The balance sheet for King Company shows cash, current investments, accounts receivable, notes receivable, and PPE. Which, if any, of these accounts should be used in calculating the acid-test ratio?

Wild Widgets incurs costs associated with both shipping inventory out to customers and in from suppliers. Wild also returns damaged inventory to a vendor and receives a purchase discount. Which transactions require debit to inventory?

Flyer Foods sells 125 units on account for $10 each, but the customer returns 25 of them one week later. What journal entry should Flyer record for this return? (Ignore the entry for putting returned units back into inventory)

Capital Company has a contingent liability. The likelihood of payment is reasonably possible, but the amount of payment is not reasonably estimable. Should this liability be recorded on the balance sheet, disclosed in the notes, or ignored?

Ducks Unlimited has a balance of $100,000 in A/R and the balance in AFUA is $4,000 (credit). If Ducks estimates that 10% of A/R will go uncollected, how much bad debt expense should they record?

Lightning Legal issues a nine-month 8% note receivable for $10,000. How much interest revenue will Lightning record on the day the note is issued?