Identify the three components of the upper limit on misstatements. How is each component calculated?

Q: determine the initial recognition, initial measurement, and subsequent measurement ofbonds;

A: The face value of a bond is the fixed maturity value and the coupon is the fixed periodic amount…

Q: What are the steps in solving problems involving partitive proportions?

A: In partitive proportion, at first it is to be understood that there is a relationship between the…

Q: Explain the three methods of estimating doubtful accounts.

A: There are different method for estimating the value of bad debts/uncollectible.

Q: What are the four distinct categories of adjustments?

A: Adjusting entries in accounting are made with a view to accurately reflect the expenses and income…

Q: Identify and explain five criteria by which a taccounting heory may be evaluated?

A: The accounting theory is considered as a branch of accounting that consists of all the set…

Q: Identify and describe any four areas validity checks can be applied?

A:

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: All of the following statements are incorrect, except

A: In a different case in the case of Individual is a resident if he lives longer in the Philippines he…

Q: Explain the four Types of Adjustment Entries?

A: Adjusting entries are those entries which are passed at the end of the year to accurately record…

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: explain the meaning of permanent differences, and give two other examples

A: The periods between which revenues and expenses are reported for financial statement and income tax…

Q: For each of the following independent scenarios, indicate the effect of the error (if any) on:

A: Step 1 Journal is the part of book keeping.

Q: Which of the following are permanent differences? (check all that apply)

A: A permanent difference is a difference between the tex expense and tax payable and it is never…

Q: Define adjustment entries and how they are passed?

A: Adjusting entries are those entries which are made at the end of the accounting period, to record…

Q: What procedures should be performed to determine the adequacy of the allowance for doubtfulaccounts?

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…

Q: What are the classes of transcription errors?

A: Definition: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What are the differences among the three forms of the EMH?

A: EMH refers to efficient market hypothesis.  The differences among the three forms of the EMH are:

Q: Which of the following is incorrect regarding measurement period?

A: Business combinations are the result of acquisitions or mergers. Here, one party acquires the other…

Q: In WEAK’s books, what amounts are recognized for the following?

A: The answer is stated below:

Q: Give examples of three uninsurable exposures and indicate why each is uninsurable.

A: A person can insure his life also which is called as life insurance. If anything happened to him…

Q: What three techniques are used to assess stand-alone risk?

A: Stand-alone risk: Stand-alone risk is the risk related with the anticipated project cash flow. The…

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error…

Q: The risk of material misstatement is a combination of two client controlled factors: inherent risk…

A: Inherent risk: Inherent risk arises when the misstatement is present in the financial statements of…

Q: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.

A: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.…

Q: Briefly explain the three methods of DEPRETIATION? Which of the methods are used the most often in…

A: There are several types of depreciation and different formulas for determining the book value of an…

Q: Name the error which was made under the following circumstances:

A: The error of omission is a type of error that takes the account of results caused due inactions or…

Q: What is the correct amount of nventory?

A: Goods in transit, shipped at FOB shipping point are to be removed from inventory because they left…

Q: Give two examples of errors of commission?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: List and briefly describe the three categories of likelihood that a future event(s) will confirm the…

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…

Q: Define a loss contingency. Provide three examples

A: Loss Contingency:   It is a form of contingency where an existing situation or circumstance where…

Q: Describe about the deferrals? Explain it in detail.

A:

Q: What is an uncorrected misstatement?

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: In your opinion what are the three most important areas to use when benchmarking?

A: Benchmarking is the technique to compare the business's product, practices, and services of the…

Q: Describe the steps to be taken to correct an error.

A: Accounting Error:   It is an unintentional mistake in recording an accounting entry and is…

Q: Distinguish between the two general types of subsequent eventsand explain how they differ. Give two…

A: Auditing: Auditing is an independent examination of financial statements. The set of financial…

Q: Identify and briefly explain the four types of divestitures.

A: Following are the 4 kinds of divestitures: Strategic Buyers: We are either vertically or on a level…

Q: where is the correcting entry of the following?

A: Prepaid Expenses: Future costs that have been paid for in whole or in part in advance are referred…

Q: .    In determining the amount of a provision, a company using IFRS should generally measure: a.…

A: An economic obligation created and maintained to cover the future liability is termed as provisions.…

Q: Define risk of material misstatement.

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

Q: The following has 1. An amount of irrecoverable.

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: What four mistakes are commonly made when estimating the WACC?

A: WACC is used to determine the cost of each part of the firm’s capital structure, which is based on…