e has violated
Q: Explain contributory negligence.
A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…
Q: They apply to
A: Examples of like-kind properties: The like-kind properties should include assets that fall under the…
Q: Explain how materiality differs for failure to follow GAAP and for lack of independence.
A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…
Q: If you become aware of a breach or violation, you should
A: Breach or violation of the terms and conditions by the employee is a commit of fraud or revealing…
Q: 1.Which of the following is not true about FICA?
A: GIVEN the following is not true about FICA
Q: Give two examples of errors of principle?
A: Errors of principle refers to errors that are carried out at time of noting down transactions…
Q: 1. What type of trust is applicable in thì situation?
A: A trust is an arrangement which gives the trustee to hold assets placed in the trust. He can act on…
Q: "hich of the following is not a principle ôf internal Control?
A: Internal controls are the controls used to safeguard the business from internal frauds. Internal…
Q: 2. Define and describe a conflict of interest.
A: Solution Concept Conflict of interest The term conflict of interest means when there…
Q: What does overstated mean?
A: Definition of Overstated:- Overstated uses two way terms by accountant: The entered or reported…
Q: O a. Liability
A: Correct Answer :- Liability.
Q: What are the two preconditions for the use of EAC?
A: It is also called as EAC, is the yearly expense of owning and preserving a asset that is calculated…
Q: nonrecurring
A: Extraordinary things vs. Nonrecurring Items: an summaryExtraordinary things area unit gains or…
Q: Explain preemptive right
A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…
Q: Contrast the constructive receipt doctrine with the claim of right doctrine.
A: As per the constructive receipt doctrine, a tax payer is required to pay taxes on income even if the…
Q: anuty What general internal control v
A: Given case is: All-Around Sound Co. discovered a fraud whereby one of its front office…
Q: ecause he did reshold amou
A: Phillipines introduced changes in VAT in 2018 and raised the…
Q: Which of the following s he violated?
A: An employee working in an organization must have some ethics and values. The employee should work…
Q: Which of the following statements is false about CD's
A: Certificate of Deposits or CD's is offered by banks or financial institutions. The CD's are deposits…
Q: =) FALSE?
A: The exchange rate refers to the value of the one currency converted into the other currency. The…
Q: Why option A is incorrect?
A: revenue is generated by the business whenever goods or services are sold by the business.this leads…
Q: Is fair representation the same with faithful representation
A: Fair presentation, as per IAS 1, entails the faithful representation of the impacts of events,…
Q: What is imputed interest, and how does it work
A: The Answer:
Q: What are circumstance-imposed scope limitation and client-imposed scope limitation?
A: Accounting: Accounting is a system, or a process of collecting and organizing economic…
Q: nuch should
A: Introduction: The given problem asks about the amount to be deposited now. In this case the future…
Q: Part a and b are wrong ?
A: Depreciation - It is the reduction in the value of fixed asset due to normal wear and tear and…
Q: 3. What is availability? Give an example showing a violation of availability.
A: Following is a meaning of availability and its examples
Q: fair value of an
A: Fair value of ordinary share = Next dividend/(Required rate of return - Growth rate of dividend)
Q: _______________________must follow GAAP, whereas_________________ need not follow GAAP.
A: Publicly traded companies must follow GAAP, whereas Management Accounting need not follow GAAP.
Q: What is USALI? Is it required under GAAP? Why would you use it?
A: USALI is Uniform System of Accounts for the lodging industry. The USALI states that all financial…
Q: What is contra?
A: Contra in accounting terms means an account with balance that has opposite of the normal balance and…
Q: What is his QBI deduction?
A: 1. Deduct upto 20% QBI = $ 110,000 * 20% = $ 22,000 2. 50% of the W-2 wages QBI = 40,000 * 50% =…
Q: Which of the following statements is false?
A: Sinc as there are multiple questions are given, so as per answering guideline we do only first one.
Q: What are substantive participating non-controlling rights?
A: Noncontrolling rights that allow the noncontrolling shareholder to participate in either corporate…
Q: Define Illegal acts.
A:
Q: The Conceptual Framework is not an IFRS.
A: IFRS is an acronym of International Financial Reporting Standards The IFRS provides the standards…
Q: Which statement is false?
A: Corporate Bonds: These are bonds issued by the corporation for raising capital. These are…
Q: Jerry Isaacs could amort
A: First month balance: New balance = Opening balance - Principal New balance = $8000 - $296.59 New…
Q: What is an unasserted claim?
A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…
Q: Explain how to account for the impairment of a held-tomaturitydebt security.
A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…
Q: which asset never depericate in value
A: The question is related to the Non-Depreciating Asset.
Q: Which of the following statement/s are incorrect?
A: Liability: Liability: Amount of money or fund entity owns to pay outside or within the organization.…
Q: Define the term illegal acts.
A: Confidential Client Information Rule: Confidential client information rule states that the member of…
Q: Which of the following statements is false
A: A Bondholder gets a coupon amount calculated at a rate, on the face value. And at the end of…
Step by step
Solved in 3 steps
- A owns 30% of the stock of B. During the year, A sold inventory to B for $ 96,000. A charges a profit of 20% on cost. At the end of the year, B had $ 24,000 of the inventory still on hand. What is the unrealized profit on this sale? (A) $ 1,200 (B) $ 1,440 (C) $ 16,000 (D) $ 19,200Talbot purchases business machinery for a price of $100,000. Talbot pays the seller $20,000 in cash and finances the rest by giving the seller a note for $80,000. What is Talbot’s initial basis in this machinery? Refer to the facts of Question #1. Assume Talbot uses the machinery, depreciates $60,000 of the machinery’s cost, and sells the machinery for $50,000 after that time period. Talbot reduced the principal amount of the note to $40,000 during the period of use. The buyer assumes the balance of the note and gives Talbot $10,000 in cash to complete the sale. What is Talbot’s gain on the sale of this machinery?Cameron D., a sole proprietor has the following data in 2021 for the first year of merchandising:Gross sales – P300,000; Cost of Sales – P150,000; Other Income – P50,000; Selling expenses – P20,000; Depreciation expense – P4,000. How much is Cameron’s gross income?
- Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets: Accounts receivable: 42,250 Inventory: 149,600 Furniture and Equipment: 63,750 Accumulated Depreciation: (51,000) Leashold Improvements: 23,000 Accumulated Amortization: (4,600) The purchaser paid a lump-sum price of $316,500 cash for the business. The sales contract stipulates that the FMV of the business inventory is $154,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. Drake’s marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $90,000 cash B. $85,000 cash C. $80,000 cashJay sold three items of business equipment for a total of 300,000. None of the equipment was appraised to determine its value. Jays cost and adjusted basis for the assets are as follows: Jay has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth 300,000 to the buyer in this arms length transaction. How should Jay allocate the sales price and figure the gain or loss on the sale of the three assets?
- Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.Del Rio began Rio Enterprises on January 1 with 200 units of inventory. During the year, 500 additional units were purchased, 500 units were sold, and Del ended the year with 200 units. Del is very satisfied with his first year of business although the cost of replacing his inventory rose continually throughout the year. The 500 units sold for a total of 320,000 and the 500 units purchased to replace them cost 256,000, so his cash account has increased by 64,000. Del is concerned however because he has three obligations yet to meet: taxes, dividends, and his wife. Federal and state income taxes will take 40% of his income. His investors are to receive dividends equal to half of any income after taxes are paid. And finally, Del promised his wife a big trip to Hawaii if she let him quit his job as a professor and start his own business. He promised her hed make at least 50,000 after taxes. That will give us 25,000 after paying off the investors. Del kept fairly good records during the year and knows the specific cost of each inventory unit sold. He has prepared the following table to summarize his purchases and sales. Reset the purchase prices to their original values (cells C11 through C14). Suppose Del had purchased 250 units on November 20 rather than 150. Enter 250 in cell C14 and alter column G in the Data Section. Explain what happens to net income under each inventory cost flow assumption and why. Also, what management implications might this have for Del?The sole proprietor had the following data for the year 2020. Sales P500,000; Beginning inventory, P50,000; Net purchases P300,000, Freight in P15,000; Ending inventory P45,000; Supplies inventory 10,000; Operating expenses P135,000 including Supplies expense of P5,000 What is the net profit?
- Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $50,000. Already deducted from that number are depreciation of$5,000, financing fees of $2,500, and salaries to arm's length employees of $10,000.CCA would be $4,000.Calculate Ferran's taxable income based on what you know about them?The Rollings Company had sales of $1,000 with cost of goods sold (COGS) equal to 30% of sales. Rollings also had total other operating expenses of $400, interest expense of $125, and is subject to a flat 40% of its pre-tax income in income taxes. What is Rollings’ net income?Waqar is a sole trader. He provides the following financial information in respect of his business. Income statement for the year ended 31 December 2019 Rs 000 Sales 3380 Cost of sales (2000) Expenses (1200) Profit for the year 180 Statements of financial position at: 31 December 201831 December 2019 Rs 000Rs 000Rs 000Rs 000 Non-current assets Freehold land 2000 3500 Plant and machinery at cost900 1020 Less: depreciation(500) (470) Net book value 400 550 2400 4050 Current assets Inventory 310 320 Trade receivables 240 210 Cash and cash equivalents 10 - 560 530 Current liabilities Trade payables 200 160 Bank overdraft - 530 200 690 Non-current liability – loan 500 350 Net assets 2260 3540 Additional information Additional Information:Drawing is $400During the year Winston purchased new plant at a cost of $200 000. He also sold some plant that had a net book value of $20 000 and had been…
