EP AUDITING+ASSURANCE...-MYACCT.LAB
16th Edition
ISBN: 9780134148656
Author: ARENS
Publisher: PEARSON CO
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Chapter 22, Problem 24DQP
To determine
List any audit steps or reporting requirements that must be taken to recognized in connection with each of the situation given.
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The following covenants are extracted from the indenture of abond issue. The indenture provides that failure to comply with its terms in any respectautomatically makes the loan immediately due (the regular date is 20 years hence). Listany audit steps or reporting requirements you think should be taken or recognized inconnection with each one of the following:a. The debtor company shall endeavor to maintain a working capital ratio of 2 to 1at all times, and in any fiscal year following a failure to maintain said ratio, thecompany shall restrict compensation of officers to $100,000 per individual. Officersfor this purpose shall include chairman of the board of directors, president, all vicepresidents, secretary, and treasurer.b. The debtor company shall keep all property that is security for this debt insuredagainst loss by fire to the extent of 100% of its actual value. Policies of insurancecomprising this protection shall be filed with the trustee.c. The debtor company shall pay all…
an entity has an existing note maturing within 12 months from the balance sheet date. The entity has the right to refinance the obligation for 15 months from the report date the obligation should be accounted for as
A. Accounted for as a current liability when refinancing was done after the report date and after the issuance of the financial statement, with a corresponding disclosure in the notes regarding the refinancingB. Accounted for as a current liability when refinancing was done on or before the reporting date.C. Accounted for as a current liability when refinancing was done after the report date but before the issuance of the financial statement.
D. Accounted for as a noncurrent liability when refinancing was done on or before the maturity date
9. Which of the following items would be excluded from current liabilities?
Group of answer choices
a. Normal accounts payable which had been assigned by the creditor to a finance company.
b. Long-term debt callable within one year or less because the debtor violated a debt provision.
c. A short-term debt which at the discretion of the entity can be rolled over at least twelve months after the balance sheet date.
d. A long-term liability callable or due on demand by the creditor even though the creditor have given no indication that the debt will be called.
Chapter 22 Solutions
EP AUDITING+ASSURANCE...-MYACCT.LAB
Ch. 22 - List four examples of interest-bearing liability...Ch. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Distinguish between (a) tests of controls and...Ch. 22 - Prob. 7RQCh. 22 - Prob. 8RQCh. 22 - Prob. 9RQCh. 22 - Prob. 10RQ
Ch. 22 - Prob. 11RQCh. 22 - Prob. 12RQCh. 22 - Prob. 13RQCh. 22 - Prob. 14RQCh. 22 - Explain the relationship between the audit of...Ch. 22 - Prob. 16.1MCQCh. 22 - Prob. 16.2MCQCh. 22 - Prob. 16.3MCQCh. 22 - Prob. 17.1MCQCh. 22 - Prob. 17.2MCQCh. 22 - Prob. 17.3MCQCh. 22 - Prob. 18.1MCQCh. 22 - Prob. 18.2MCQCh. 22 - Prob. 18.3MCQCh. 22 - Items 1 through 6 are questions typically found in...Ch. 22 - Prob. 20DQPCh. 22 - Prob. 21DQPCh. 22 - Prob. 22DQPCh. 22 - Prob. 23DQPCh. 22 - Prob. 24DQPCh. 22 - The Redford Corporation took out a 20 -year...Ch. 22 - Prob. 26DQPCh. 22 - Prob. 27DQPCh. 22 - The following audit procedures are commonly...Ch. 22 - Prob. 30DQPCh. 22 - Prob. 31DQP
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