rue or False: Effectiveness is doing the right things of completing activities so that the organization’s goals are obtained.
Q: QUESTION 43 Ben is a sole trader carrying on a computer repair business and has four employees. Ben ...
A: Fringe benifit are additional benifits provided by employer to its employees on their performance.
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...
A: Goodwill = Consideration paid - fair value assets + fair value of liabilities.
Q: d. income 18. The source for preparing the schedule of accounts payable is the a. purchase invoices....
A: 18. A schedule of accounts payable constitutes the balance owed by the entity to various suppliers ...
Q: Karel Inc. was assessed by the BIR for improperly accumulating profits. Karel Inc. reported the foll...
A: Answer: IAET is penalty that is 10% calculated on improperly disclosed income by any assessee. This ...
Q: Factory Overhead 4,000
A:
Q: BC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: Use the following information for the next five questions:On January 1, 2021, ABC Co. acquired all o...
A: Consolidation- A consolidation statement refers to the consolidated financial statement that reflect...
Q: The petty cahs fund is $800 On September 5, the petty cash fund needed replenishment, and the follo...
A:
Q: Part A Anne York is a sole trader who started the business of buying and selling furniture in Brig...
A: Disclaimer:- “Since you have asked multiple question having multiple sub-parts we will solve the fir...
Q: The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivab...
A: Solution: bank reconciliation is prepared to reconcile the balance of cash as per bank statement and...
Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wire...
A: The perpetual inventory system vs. the periodic inventory system The perpetual inventory system auto...
Q: In a partnership ABC, engaged in the flowershop business, the liabilities of the partners are as fol...
A: Partnership- Partnership refers to a form of organization that is incorporated under a common assent...
Q: 6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On Janua...
A: Consolidated financial statements are being prepared for combining and consolidating two entities, i...
Q: Q 8: King Kong Limited acquired a piece of land for setting up a factory for Rs. 15 million on 1st O...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here ...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net pric...
Q: Consider the unadjusted trial balance of RiverdaleCompany at June 30, 2016, and the related month-en...
A: To begin, keeping accurate records of your transactions aids in the organization of your business's ...
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...
A: Goodwill or gain on bargain purchase is a gap between the consideration paid and net identifiable as...
Q: BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following b...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: Regarding corona-virus related distributions (CVDs) taken from IRAs in 2020: A The maximum CVD a...
A: The CARES Act of 2020 offers substantial assistance to companies and individuals harmed by the COVID...
Q: The unadjusted trial balance is prepared a.prior to posting the journal entries. b.only if errors ...
A: Lets understand the basics. Stage 1:- At the first stage journal entry is made. Stage 2:- After that...
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: Consolidation is the process of combination of one entity into another company and then these entiti...
Q: March 1 Brooks invested $195,000 cash along with $24,000 in office equipment in the company. March 2...
A: In the recording process Step 1 : Journal entries , These are prepared based on the transactions Ste...
Q: Reversing entries are made at the beginning of the new accounting period in order to transfer all ac...
A: Revising Entries: It is possible to make an accounting period-ending journal entry that reverses cer...
Q: XYZ Corporation has annual cash demand of 3,000,000 for a fund set aside for operating expenses. The...
A: Optimum cash balance: It is the balance wherein the cost of depositing the fund is minimum if we com...
Q: Required information [The following information applies to the questions displayed below.] The trans...
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...
Q: if we produce goods over the capacity, should we consider the fixed marketing cost and variable mark...
A: Fixed marketing costs is fixed costs related with the marketing of the product and this will not be ...
Q: Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P2...
A: Dfrttt
Q: What do we understand, when we say that Social and Economic Accounting is a "comprehensive,
A: GIVEN when we say that Social and Economic Accounting is a "comprehensive, consistent and integrat...
Q: In the income statement for the quarter ended September 30, 2014, what amount of casualty loss shoul...
A: Loss is the amount which is incurred by the company during the year or during the period which means...
Q: What does the balance sheet measure? What is the “ Accounting Equation” used in a balance sheet?
A: The financial statements of the business include the balance sheet and income statement.
Q: Kalinga Company reported the following adjusted account balances at year-end: Share capital ...
A: solution concept total share holders equity total share holders equity means the sum of...
Q: АВС Со (carrying amounts) (fair values) XYZ Inc Combined Identifiable assets 9,600,000 6,400,000 16,...
A: A Goodwill is said to be an Intangible asset.The percentage of the purchase price that is larger tha...
Q: 5. On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabil...
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of identifiab...
Q: Closing entries in books of blue and royal
A: ROYAL and BLUE have decided to pool their assets and form a new partnership firm. The partnership fi...
Q: PROBLEM 4 July Corporation uses process costing in its two producing departments. In Department 2, i...
A:
Q: Cullumber Blossom Corporation Corporation 2022 2022 Net sales $1,815,000 $620,000 Cost of goods sold...
A: The ratio analysis helps to analyze the financial statements of the business with various assets, li...
Q: What is a compensating balance?
A: As per the guidelines, only one qustion s allowed to be solved. Please resubmit the questions separa...
Q: Henson was one of the passengers of a van that fell of a ravine. Henson sued the bus company and was...
A: Given data, Indemnity =P800,000 Impairment of his health resulting to the amputation of his legs =P5...
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on D...
A: LAWSON CONSULTING Statement of Owners' Equity For the Month Ended December 31 Capital Balance,...
Q: QUESTION TWO b. IFRS are relevant to various stakeholders. State the relevance of IFRSs to each of ...
A: Solution Concept Relevance is one of the fundamental qualitative characteristic of the financial sta...
Q: A local Barnes and Noble paid a $79.88 net price for each hardbound atlas. The publisher of publishe...
A:
Q: Steven Company provided the following information during the first year of operations: Total mercha...
A: Accounts Receivables means accounts related to those customers to whom credit sales has been made bu...
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: Solution Requirements how much is the Goodwill arising from this Business Combination given informat...
Q: Pablo Management has six employees, each of whom earns $150 per day. They are paid on Fridays for wo...
A: Adjusting entries are those journal entries which are passed at the end of accounting period for acc...
Q: ariable Costing Income Statement On April 30, the end of the first month of operations, Joplin Comp...
A: A variable costing income statement subtracts all variable expenses from revenue to arrive at a sepa...
Q: On May 1, 20X1, Starlight Company purchased $750,000 of Gazing Corp's 12% bonds at 100 plus accrued ...
A: Journal entries shows the recording of the transaction during an accounting year and every transacti...
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...
A: Goodwill is an intangible asset which comes into existence when a company buys or acquire another ex...
Q: 3. Pagadian, Inc. reported the following during the year: P400,000 proceeds of life insurance of an ...
A: In case of cash basis of accounting we should recognise revenue and expenses as and when received an...
True or False:
- Effectiveness is doing the right things of completing activities so that the organization’s goals are obtained.
- Political and legal factors are part of the external environment of a business.
- Delayering has no consequence on the span of control of an organization
- Shareholders can be sued for the debts of a limited company.
- Organizations that operate globally do not have to be sensitive to local conditions.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.Good corporate citizenship ________. A. Is expensive to implement and does not guarantee returns B. must have managements sincere convictions behind it in order to succeed C. Is more relevant in countries with less regulation. D. makes good business senseWhat is the best way for owners of small businesses to maintain proper internal controls? A. The owner must have enough knowledge of all aspects of the company and have controls in place to track all assets. B. Small businesses do not need to worry about internal controls. C. Small businesses should make one of their employees in charge of all aspects of the company, giving the owner the ability to run the company and generate sales. D. Only managers need to be concerned about internal controls.
- Authorization of transactions is a key control in most organizations. Authorizations should not be made by individuals who have incompatible functions. For each transaction (listed as A through I), indicate the individual or function (e.g., the head of a particular department) that should have the ability to authorize that transaction. Briefly provide a rationale for your answer. a. Writing off old accounts receivable. B. Committing the organization to acquire another company that is half the size of the existing company. C. Paying an employee for overtime. D. Shipping goods on account to a new customer. E. Purchasing goods from a new vendor. F. Temporarily investing funds in common stock investments instead of money market funds. G. Purchasing a new line of manufacturing equipment to remodel a production line at one of the company’s major divisions (the purchase represents a major new investment for the organization). H. Replacing an older machine at one of the company’s major divisions. I. Rewriting the company’s major computer program for processing purchase orders and accounts payable (the cost of rewriting the program will represent one quarter of the organization’s computer development budget for the year).Segregation of duties is an important concept in internal control. However, segregation of duties is often a challenge for smaller businesses because they do not have sufficient staff to segregate duties. Normally, the segregation of duties identified below results in either a significant deficiency or a material weakness in internal control.For each “segregation of duties: problem identified here:a. Identify the risk to financial reporting that is associated with the inadequacy of the segregation of duties.b. Identify other controls that might mitigate the segregation of duties risks.c. If a control is identified that would mitigate the risks, briefly indicate what evidence the auditor would need to gather to determine that the control is operating effectively.Situations1. The same individual handles cash receipts, the bank reconciliation, and customer complaints.2. The same person prepares billings to customers and also collects cash receipts and applies them to customer accounts.3.…Which one is false? A. The agency is defined as a relationship by consent between two parties, whereby one party agrees to act on behalf of the other B. Agency theory assumes that a conflict of interest exists between the owners of a firm and the managers C. Generally agency costs of a firm are not controlled by firm itself D. Financial reporting may provide the information for the potential agency costs of the firm
- Corporate governance is defined as "the set of laws, rules, and procedures that influence the company's operations and the decisions its managers make." Agency costs are "the reductions in a company's value due to actions by agents (managers), including the costs principals (shareholders) incur (such as monitoring costs) trying to modify their agents' behaviors." Corporate governance provisions are set in place as way to help minimize the agency conflict within a firm. Not one provision alone completely eliminates the potential for all agency conflict. As a result, multiple governance provisions are typically in place at a firm to help minimize the risk. The book lists 5 common internal governance provisions: monitoring and discipline (threat to fire) by the board of directors charter provisions and bylaws that affect the likelihood of hostile takeovers (remember that in general: shareholders like hostile takeovers, managers do not) compensation plans capital structure choices…The fundamental characteristic of the corporateform of business organization that gives rise to the need for governance mechanism is: A.the seperation of ownership and control B.mutual agency C.the abuses by professional managers D.the lack of separation of onwership and controlWithin the context of financial management, it is important that organizations attempt to align their managers' interests with that of the shareholders. In Chapter 16, Berk and DeMarzo (2020) provide several examples of agency conflict or a conflict between the owners and the management of a firm. Examples of these are: (a) at times managers will take on less (greater) risk than they would if they were the owners of the firm and (b) due to the separation of ownership and control managers are able to entrench themselves within firms and have little risk of being replaced. Provide a few examples of mechanisms that organizations could use to align the interests of both the owners of the firm and its managers.
- Effective segregation of duties is sometimes not economically feasible in a small business. What internal control elements do you think can help compensate for this threat?Segregation of duties is an important internal control. However,this control is often a challenge for smaller businesses because they donot have sufficient staff. Normally, a segregation of duties deficiencyresults in either a significant deficiency or a material weakness in internalcontrol. For each segregation of duties deficiency identified as(1)–(6), complete the following three tasks:a. Indicate the risk to financial reporting that is associated with theinadequacy of the segregation of duties.b. Identify other controls that might mitigate the segregation ofduties risks.c. Identify possible tests of controls for the mitigating controlsselected in (b).The inadequate segregation of duty situations includes:1. The same individual handles cash receipts, the bank reconciliation,and customer complaints.2. The same person prepares billings to customers and also collectscash receipts and applies them to customer accounts.3. The person who prepares billings to customers does not handlecash…Companies of all sizes try to reduce business risks, create disaster recovery plans, and also purchase insurance for what they cannot completely control. Therefore, the business risk is the risk that: Select one: a.The auditor will give an inappropriate auditor’s opinion when the financial report is materially misstated b.The entity’s business objectives will not be attained due to the external and internal environment affecting the entity and the industry in which it operates. c. An error will occur given the environmental characteristics of the account balance. d.The auditor will be exposed to loss to their professional practice from litigation or adverse publicity arising in connection with an audit.
