Assuming that the land acquired in (a) was sold for $2,125,000, how would the various elements of the accounting equation be affected?

A business school offers courses in keyboarding, spreadsheets, transcription, business English, technical writing, and accounting. In

Many economists have recommended higher capital requirements to solve the problems associated with financial crises.
(a) What is a capital requirement?
(b) How could higher capital requirements potentially help the economy in terms of financial stability?

Determine the missing amount on the given accounting equation.

The financial statements of P&G are presented in Appendix B. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions.

• a. Does P&G report any intangible assets, especially goodwill, in its 2014 financial statements and accompanying notes?
• b. How much research and development (R&D) cost was expensed by P&G in 2013 and 2014? What percentage of sales revenue and net income did P&G spend on R&D in 2013 and 2014?

Indicate how each business transaction affects the basic accounting equation.

(b) Purchased equipment for cash.

What is the effect on the right side of the accounting equation when cash is collected in advance of performing services?

Why are incidental costs sometimes ignored in inventory costing? Under what accounting constraint is this permitted?

This and similar cases in later chapters focus on the financial statement of a real company—Amazon.com, Inc., the Internet shopping leader. As you work each case, you will gain confidence in your ability to use the financial statements of real companies. Refer to Amazon.com’s financial statements in Appendix A at the end of the book. Requirements

1. How much in cash (including cash equivalents) did Amazon.com have on December 31, 2009?
2. What were the company’s total assets at December 31, 2009? At December 31, 2008?
3. Write the company’s accounting equation at December 31, 2009, by filling in the dollaramounts:

$$\text { Assets = LIABILITIES + EQUITY }$$

4. Identify net sales (revenue) for the year ended December 31, 2009. How much did total revenue increase or decrease from 2008 to 2009?
5. How much net income or net loss did Amazon earn for 2009 and for 2008? Based on net income, was 2009 better or worse than 2008?

Why is it important to segregate the duties for handling cash from the duties for keeping the accounting records for cash?

Which concept states that accounting information should be complete, neutral, and free from material error?

Explain how a retailing firm would determine the cost of goods sold during an accounting period.

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to reporting accounting changes. ]

Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's accounting for a sales-type lease transaction?