Explain how to account for the impairment of a held-tomaturitydebt security.

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: What disclosure is made if a loss contingency is reasonably possible?

A: Contingent Liability: Contingent liability is one form of liability that arises based on a…

Q: Provide examples of how finacial statments are useful and or how they are used?

A: Financial statements refer to such statements which report the profitability and the financial…

Q: Define asset-backed security

A: Answer: Asset backed security is nothing but a security is made up of other financial securities.…

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: Explain common principles and limitations of internalcontrol.

A: Internal Control is a concept which ensures management to to safeguard its assets. Internet control…

Q: One word to indicate that a security is salable on short notice.

A: Investment- Investment is the sum which is expended by the manufacturer for the acquisition of those…

Q: What is nonoperating current assets?

A: Non-operating current asset: It could be a type of current resources or assets that are not basic to…

Q: What is the basis for distinguishing between operating and nonoperating items?

A:

Q: What items could increase the risk of material misstatement?

A: Risk of material misstatement (ROMM) is a risk that the financial statements when audited will…

Q: Distinguish between losses from transaction exposure, operating exposure, and translation exposure?…

A: The Answer :

Q: Explain Anti-dilutive Security

A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…

Q: What is the purpose of a limit check?

A: Internal controls: Internal controls are the control established within an organization to check…

Q: What approaches may be employed in applying the LCNRVprocedure? Which approach is normally used and…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method…

Q: When is independence impaired under PCAOB standards?

A: Independence would be considered to be impaired if a covered member accepts more than a token gift…

Q: What is nonoperating assets?

A: Non-operating assets are the assets that are not required or in use for normal business activity.…

Q: Describe Detection Risk.

A: Risk: It is the uncertainty about the future events of the company. The adverse chances of choosing…

Q: Define the term Loss Contingencies.

A: A loss contingency is incurred by the business based on the result of a future event, such as…

Q: Define Loss contingency.

A: A loss contingency gives the reader of the financial statements early warning of an impending…

Q: Describe Inherent Risk.

A: Definition:   Audit Planning: Audit planning is the first step in the auditing process. The auditor…

Q: Explain the purpose of IFRS for SMEs and how it differs from full IFRS.

A: IFRS or International Financial Reporting Standards are the guidelines of accounting given by the…

Q: describe conditions that are conducive to issuing low-quality, or even fraudulent, fi…

A: Financial reports are issued at the end of the year that shows the status of the Company.

Q: What is an Anti-dilutive Security

A: Anti-dilutive securities are those securities that a company has issued and which can get converted…

Q: Describe the basic assumptions of underlie GAAP.

A: Generally Accepted Accounting Principles (GAAP): It refers to accounting principles, standards and…

Q: Explain the differences between IFRS and GAAP

A: GAAP is a common set of accepted accounting principles, standards, and procedures that companies and…

Q: machine expendit nstallatic ine, but

A: We will evaluate the project for 5 years as per given info and by…

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: o and you are planning to add a single security to that security you are adding is relevant, The…

A: Portfolio refers to the combination of financial investments like bonds, stocks, cash, etc., and…

Q: Define and describe auditsampling for exception rates

A: Audit sampling: Audit sampling can be defined as the selection of items from a population to be used…

Q: What are the types of situations that result in troubleddebt?

A: Troubled debts can result in two different situations, which are as…

Q: Differentiate between fundamental and technical anomalies.

A: Market anomalies are exceptions to the hypothesis theory of market efficiency.

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: Why do deferred liabilities arise? Explain your answer with suitable example.

A: Why do deferred liabilities arise? Explain your answer with suitable example.

Q: State difference between sureties and security?

A: In development contracts, if a worker for hire neglects to play out the works, the business would…

Q: How can spooling present an added exposure?

A:

Q: Explain the meaning of withholding at source

A: In finance withholding at source pertains to the domain of taxation. This is found in many countries…

Q: Describe a “loss carryforward.” Discuss the uncertainty when it arises.

A:

Q: Define underinvestment problem

A: Underinvestment refers to the situation where company or firm has insufficient investment or can…

Q: Explain restrictive covenant

A: Covenants are the obligation in a contract between persons to do or to not do certain actions.…

Q: Outline the anti-avoidance provisions as they relate to dealings in security

A: Anti avoidance provisions means a cluster of statutory provisions designed to stop certain…

Q: Define security instrument (or trust receipt)

A: A trust receipt is a notification of the release of goods from a bank to a purchaser, with the bank…

Q: Define detachable warrant

A: A detachable warrant may be a by-product that's connected to a security which supplies the holder…

Q: Distinguish between exposure and risk.

A:

Q: Define risk of material misstatement.

A: Material misstatement represents the statement presented in the financial statement which is…