Chapter 4, Problem 7C

1.

To determine

Explain the requirement that must be disclosed regarding the accounting policies of a company.

2.a

To determine

Review the Company S’s note on its accounting policies and explain the items that are classified as cash equivalents.

b.

To determine

Review the Company S’s note on its accounting policies and explain the way in which the inventories are valued and explain the inventory costing method used.

c.

To determine

Review the Company S’s note on its accounting policies and explain the way in which property, plant and equipment are stated and mention the depreciation method used.

d.

To determine

Review the Company S’s note on its accounting policies and state the allowance for doubtful accounts at the end of2017 and mention the amount of gross receivables.

e.

To determine

Review the Company S’s note on its accounting policies and state the manner in which the company will test goodwill for impairment.

f.

To determine

Review the Company S’s note on its accounting policies and state the items that do not appear on the balance sheet as assets or liabilities.

g.

To determine

Review the Company S’s note on its accounting policies and state the manner in which the company repurchases its treasury stock.