The accounting standards require management to evaluate an entity's ability to continue as a going concern within one year after the date the financial statements are issued. Describe the two steps management is required to perform in performing this evaluation.
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- The following is a potential activity undertaken by management during the preparation of financial statements. - "Assessment of the 12 months projected information of the entity" Which assumption/consideration for a fair presentation of the financial statements matches the activity? Select the correct answer. Consistency Offsetting Going concern Accrual basisManagement Discussion and Analysis is required in annual reports filed with the Securities and Exchange Commission. It includes management's analysis of current operations and its plans for the future. Typical items included in the MD&A are as follows: Management's analysis and explanations of any significant changes between the current and prior years' financial statements.Important accounting principles or policies that could affect interpretation of the financial statements, including the effect of changes in accounting principles or the adoption of new accounting principles.Management's assessment of the company's liquidity and the availability of capital to the company.Significant risk exposures that might affect the company.Any “off-balance-sheet” arrangements such as leases not included directly in the financial statements. Such arrangements are discussed in advanced accounting courses and textbooks.Using Google, enter Kroger Annual Report in the search field. Access the…Which of the following statements is (are) true, concerning the Going Concern assumption? When preparing financial statements, management is required to make an assessment of an enterprise’s ability to continue as a going concern which should be at least twelve months from balance sheet date When an enterprise has a history of profitable operations and ready access to financial resources it is not a detailed analysis as to is ability to operate as a going concern is not necessary When the financial statements are not prepared on a going-concern basis, this fact should be disclosed I and II only II and III II and III only I, II, and III
- Choose the correct.Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?a. The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.b. At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.c. At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.d. The company must provide a reconciliation of net income and stockholders’ equity under previous GAAP to net income and stockholders’ equity under IFRS in its first set of IFRS financial statements.Subsequent events are reviewed through which date under IFRS?(a) Statement of financial position date.(b) Sixty days after the year-end date.(c) Date of independent auditor’s opinion.(d) Authorization date of the financial statements.Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?a. The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.b. At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.c. At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.d. The company must provide a reconciliation of net income and stockholders’ equity under previous GAAP to net income and stockholders’ equity under IFRS in its first set of IFRS financial statements.
- Which of the following is least likely to be a procedure included in an accountant’s review of interim financial information of a public entity? a.Compare disaggregated revenue data by month to that of the previous interim period. b.Read available minutes of meetings of stockholders. c.Inquire of management concerning significant journal entries and other adjustments. d.Observe counting of physical inventory.Based on the SOX act, who is held responsible for the accuracy of a firm's annual reports? Please explain.Develop audit procedures for the use of analytical procedures as a substantive procedure in the testing of the reasonableness of monthly payroll costs for the year Develop audit procedures for the use of analytical procedures in the planning phase to identify significant changes in operating and financial activities of the firm over previous years Identify benefits of using analytical procedures in the audit process May I get some assistance with these questions please
- While assisting the accounting department with completing the current year's financial statements, you have been asked to review a list of contingent liabilities. How would a manager, review the list of contingent liabilities and determine their probability?The annual report to the shareholders and the 10-K to the SEC should provide an accurate reflection of an entity’s operations and performance. How does the management team adequately and ethically balance presenting the financial information in a way that is accurate but also reflects favorably on company performance?Assume you are employed as the chief financial officer of a corporation and are responsible for preparation of the financial statements, including the adjusting process and preparation of the adjusted trial balance. The company is facing a slow year, and after your adjusting entries, the financial statements are accurately reflecting that fact. However, as you are discussing the matter with your boss, the chief executive officer (CEO), he suggests that you have the power to make further adjustments to the statements, and that you should use that power to “adjust” the profits and equity into a stronger position, so that investor confidence in the company’s prospects will be restored. Write a short memo to the CEO, stating your intentions about what you can and/or will do to make the financial statements more appealing. Be specific about any planned adjustments that could be made, assuming that normal period-end adjustments have already been reflected accurately in the financial…
