What is a business risk?

Q: Victoria Rivera owns and manages a consulting firm called Prisek, which began operations on July 1. ...

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Q: All of the following are objectives of internal control excepta. to ensure accurate and reliable acc...

A: Internal control: Internal control is a process which ensures continuous reliability of accomplishm...

Q: Define continuity assumption

A: Accounting:   It refers to the process of recording the financial transactions of the business in ac...

Q: Investing cash flows would include which of the following? a. Payment for advertising. b. Payment of...

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Q: Sales (19,500 units x $30 per unit). $585,000 Variable expenses 409,500 Contribution margin Fixed ex...

A: Contribution Margin Ratio: The contribution margin ratio is the difference between a company's sales...

Q: Flexible-Budget Variances and Sales Volume Variances RTI Company’s master budget calls forproduction...

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. ...

Q: Classify the accounts as either an asset (A), liability (L), or equity (EQ) account. Equipment

A: Financial Accounting:   It refers to the process of recording the financial transactions of the busi...

Q: (Learning Objectives 2, 3, 4: Reconstruct transactions from the financial statements)Parker Networki...

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Q: describe a scenario in which you as a nonaccountant might us accounting.

A: A process that involves the recording transactions of financial nature is known as accounting.  

Q: Stephanie Baskill, an unemployed accounting clerk, lives one block from Cleaver Manufacturing Compan...

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Q: Starts Inc. gathered the following data for use in developing the budgets for the first quarter (Jan...

A: Direct Labor Budget :   A direct labor budget keeps track of all the labor-related expenses as they ...

Q: (Learning Objectives 1, 4, 5, 6: Apply GAAP for revenue, receivables, collections,and uncollectibles...

A: Since multiple sub-parts are posted, only the first three sub-parts will be answered. Kindly resubmi...

Q: Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on ...

A: Bank reconciliation statement:   Bank reconciliation statement is a report that summarizes the banki...

Q: El Tapitio purchased restaurant furniture on September 1, 2021, for $45,000. Residual value at the e...

A: Depreciable costs = Cost of asset - Residual value = $45,000 - $6,000 = $39,000.

Q: Samantha is a first-year accounting student. She doesn’t think it matters that expenses are reported...

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Q: In a classified balance sheet, liabilities are separated into two categories based on a. The amount ...

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of credito...

Q: Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accou...

A: The reason for the end section is to reset the transitory record adjusts to zero on the overall reco...

Q: The following are common categories on a classified balance sheet. A. Current assets C. Plant assets...

A: 1. Land held for future expansion--B. Long-term investments 2. Notes payable (due in five years)--F....

Q: Contractors Depot Co is an established builders’ merchant, and a new audit client of your audit firm...

A: a) Inherent risk: The inconsistency of internal controls is not responsible for the inherent risk bu...

Q: To obtain financing for her hair salon, Valeri asked you toprepare a balance sheet for her business....

A: Assets: These are the resources owned and controlled by business and used to produce benefits for th...

Q: Use this information for Stringer Company to answer the question that follow. The following data are...

A: Direct material quantity variance = ( Standard quantity allowed - actual quantity of materials used ...

Q: A company purchased equipment with a cost of $96,000. Residual value at the end of a six-year useful...

A: (a)  

Q: Garcia Company had the following selected transactions during the year. (A partial chart of accounts...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Define estimated useful life

A: Definition: Assets: These are the resources owned and controlled by business and used to produce ben...

Q: For each separate case below, follow the three-step process for adjusting the Supplies asset account...

A: a. Step 1:  Determine what the current account balance equals The current account balance equals $30...

Q: Machine Replacement with Tax Considerations; Spreadsheet Application; DoubleDeclining-Balance (DDB) ...

A: Solution 1: Cost of new machine = $2,000,000 Salvage value of old machine = $300,000 Initial cash fl...

Q: These 16 accounts are from the Adjusted Trial Balance columns of a company’s work sheet. In the blan...

A: Classify the accounts into respective categories.

Q: Your plans to invest $200 million in two (2) projects.  The first project you are contemplating is t...

A: Formulas: Cost of capital = (Weight of debt*After tax cost of debt) + (Weight of equity* Cost of equ...

Q: Apple Berhad is a public company located in Malaysia. Given below is a list of its balances as at 31...

A: Introduction: Equity capital: Equity capital refers to the capital raised by the business from the g...

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),...

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Q: Accounts receivable are best described as a. Liabilities of the company that represent the amount ow...

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Q: Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’ ...

A: An asset is something which contains future economic value or future benefit.  A liability is someth...

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),...

A: Accounting adjustments: Accounting adjustments can be called as the crucial step towards presenting...

Q: The following are the net cash flow estimates (in thousands of dollars) of the two (2) proposed proj...

A: i.  Capital Budgeting is the process which is used by companies to evaluate potential major projects...

Q: Render Co. CPA Is preparing activity-based budgets for 2019. The partners expect the firm to generat...

A: Activity based budgeting is a method in which budgets are prepared on the basis of the major activit...

Q: Savannah, Inc. is a company that manufactures and sells a single product. Unit sales for each of the...

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Q: Cost Flows; Application of Overhead Mooresville Corporation manufactures reproductions ofeighteenth-...

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the ans...

Q: Juventus Motor Cars Co (Juventus) manufactures a range of motor cars and its year end is 30 June 201...

A: The substantive audit procedures involve taking steps to ensure that the valuation of inventory stat...

Q: The discount on a bond payable becomesa. additional interest expense in the year the bonds are sold....

A: Bond payable: It can be defined as a debt taken by the company for a longer period and reflects the ...

Q: Name the two main components of stockholders’ equity. Describe the main sources of change in each co...

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are be...

Q: Assume the following scenarios.Scenario 1: During 2021, IBM provides consulting services on its main...

A: The revenue recognition principle also knows as the Revenue recognition concept states that revenues...

Q: Identify whether each description best applies to a periodic or a perpetual inventory system. Record...

A: Perpetual inventory system: Perpetual Inventory System refers to the inventory system that maintains...

Q: A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory...

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Q: Consider each situation independently and describe the audit opinion that should be given and explai...

A: a. Qualified Report Reason: The method of estimating bad debts is not as per the accounting policies...