An audit of business's financial reports, preformed by a third party to validate that it is an accurate representation of the economic status of the business, is known as: a) SEC b) GAAP c) Annual Report d) External Audit e) Summary Statement of Income
Q: On January 15 , Tundra Co. sold merchandise to customers for cash of $ 41,000 ( cost $ 28,000 ) .…
A: A journal entry is the act of keeping records of any transaction either economic or non-economic.…
Q: Johnson City has the following activity associated with capital assets that are related to…
A: The entry regarding the opening balance of balance sheet elements would be passed by debiting assets…
Q: This year's final paycheck will be issued on the last Friday of December. If you report the wages…
A: Answer:- Matching principle meaning:- Matching principle basically states that the organization…
Q: Prepare the net sales portion only of this company's multiple-step income statement.
A: Sales revenue: sales revenue is the revenue earned by the company through sales Gross sales: Gross…
Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…
A: Here asked for multi question we will solve for first question as per guidelines. If you need…
Q: A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities…
A: The profit in a partnership form is distributed among the partner according to the capital…
Q: Dazzle, Incorporated produces beads for jewelry making use. The following information summarizes…
A: Introduction:- Direct costs include direct materials and direct labor. These costs are also known…
Q: Deja Brew Company reported the following for the most recently completed fiscal year: Raw Materials…
A: INTRODUCTION: COGS referred Cost of goods sold refers to expenses directly associated with…
Q: assumed conversion of debentures outstanding The amount of cash dividends declared on ordinary…
A: 1)Basic earnings per share for the period = Earnings available for Common shareholders ÷ Weighted…
Q: 1. A company is in dire need of a fund and is planning to invest by issuing new ordinary stocks…
A: CAPM refers to the capital asset pricing model which is used to calculate the cost of equity. Here…
Q: Planner Corporation owns 70 percent of Schedule Company's voting shares. During 20X3, Planner…
A: Introduction: The cost of goods sold refers to the direct costs of providing a company's product…
Q: Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It expects to…
A: A budget is a forecast of future business activities. In a business, various budgets, namely cash…
Q: Len Kumar started his own consulting firm, Kumar Consulting, on June 1, 2017. The trial balance at…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…
Q: Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year.…
A:
Q: Prepare the necessary journal entries on the books of Kelly Carpet Company to record the following…
A: Following is the journal entries for 1. Purchase of merchandise 2. Return of merchandise 3.…
Q: ANZ Kitchen Appliances Pty Ltd has the following information for the month ended 30th June 2022:…
A: Date Account Titles Debit Credit June'15 Cash $ 3,300 Accounts Receivable $…
Q: Using the double entry system, together with the accounting equation, determine what debits and…
A: Double entry system is one of the system used in accounting process. This system that for every…
Q: An undertaking called Blue Enterprises was formed on 3 January 20x1, on which date the owner…
A: Lets understand the basics. As per balance sheet equation, total assets are always equal to total…
Q: What is one major difference between a compilation and a review? A. CPA conducting a review must…
A: Review needs testing of the information whereas the compilation almost relies entirely on the…
Q: Calculate the amount of budgeted purchases for its first quarter.
A: Budgeted Purchase :— It is the Expected Amount of Purchases that company purchase during the period.…
Q: Which statement is not true? Oa. Disclosures related to receivables are reported on the financial…
A: Current and Non Current Assets - Current Assets are those assets that realized cash with in a period…
Q: Calculate the weighted average unit contribution margin, assuming a constant sales mix.
A: Contribution margin or gross profit refers to the profit earns by the company for selling goods and…
Q: Shoostar Ltd is a video tech company that produces videos for companies’ marketing campaigns and…
A: You have posted multiple-part questions, so as per our policy only the first three parts will be…
Q: Use this information about Carmelita Inc. to answer the question that follow. Carmelita Inc. has…
A: >Process costing includes calculation of Equivalent units and cost per equivalent units.…
Q: The following information was taken from the books of Olmeck, Inc. Sales Accounts receivable:…
A: Accounts receivable turnover = Net sales of company / Average accounts receivable of company Number…
Q: Balance sheet and income statement data indicate the following: Company A Company B $1,200,000…
A: The bond and the income data of two companies is given to us. Based on the data, we are required to…
Q: On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature…
A: Interest expense is the amount of interest recompensed in a period. It is the amount paid as return…
Q: The 2021 income statement of Adrian Express reports sales of $19,710,000, cost of goods sold of…
A: The company is less profitable then industry as its profitability ratios are less than that of…
Q: Refer to the following data: Direct material used…
A: Cost accounting is one of the important branch of accounting. Several type of costs are being…
Q: At the end of 2020, ABC Company had the following balances: $300,000 was paid for the sold…
A: Net income = Revenue - Expenses
Q: Question: A company purchased equipment valued at $238,000. It traded in old equipment for a…
A: INTRODUCTION: The process of entering transactions into an accounting journal is known as a journal…
Q: Publicly-traded companies, domiciled in the United States, must adhere to standards, rules,…
A: All public companies are required to follow several laws, regulations and rules set by various…
Q: Digital learning that is synchronous
A: Introduction: There are two type of learning 1. Asynchronous Learning 2. Synchronous Learning
Q: a. Prepare the necessary adjusting entries on December 31, 2014 b. Prepare appropriate reversing…
A: Adjusting Entry - Adjusting Entry is the entry required to bifurcate expense of different period. It…
Q: 7. A machine is purchased for $400,000. The machine is classified as MACRS 5-year property. The…
A:
Q: #25 ABC Company has the following data for the year: Ordinary shares, outstanding since January 1…
A: Incremental EPS is calculated with the help of following formula Incremental EPS = Incremental…
Q: his question is asking amount that Ding would receive instead the answer states what Tillman would…
A: A partnership refers to an agreement made between the 2 or more individuals who promise to operate a…
Q: artners A, B and C decided to liquidate their partnership. A summary of the partnership's state…
A: Partnership- A partnership is a type of business where two or more persons jointly own and are…
Q: 3. What are the factors determining Working Capital Requirements? Choose only 3 and briefly explain.
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Multiple choice 1. Net loss appears on the worksheet. A. In the income statement credit column and…
A: Introduction: The amount of revenue that exceeds costs is referred to as net income. It is the…
Q: A company that is breaking even is making a profit. ( a) True ( b) False
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: 13 Complete the statement: The effect of recording a 100% share dividend would be to ______.…
A: Share dividend is one of the form of dividend being paid to shareholders. Under this, additional…
Q: In the answer box below, identify three critical factors that the company should consider when…
A: Capital expenditure means the amount spent on the purchase of fixed assets, land, buildings,…
Q: Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them.…
A: Total product cost includes a total direct cost. It includes direct material, direct wages, and…
Q: how much is the basic earnings per share for the year ended 2021?
A: Basic earnings per share are the earnings which a company has earned during the year on each share…
Q: Specify every aspect of the link between the income statement, the balance sheet, and the cash flow…
A: Introduction:- The financial statements are mainly classified as follows under:- Income statement…
Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…
A: Lets understand the basics. When debt investment purchased and designated at FVTPL then interest…
Q: ddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year…
A: A cash budget is a projection of an industry's free cash flow over a given time period.. This might…
Q: Equipment was acquired at the beginning of the year at a cost of $76,380. The equipment was…
A: Equipment is the non-current asset which is used by the entity for day to day operations so as to…
Q: Zachariah City's water utility fund enters into a five-year lease for maintenance equipment on July…
A: According to the given question, we are required to prepare Journal entries in the books of…
Step by step
Solved in 2 steps
- Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.Indicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
- The metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholdersThat a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionWhich of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
- Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or monthsAn important task ¡n the audit of the revenue cycle is determining whether a client has appropriately recognized revenue. a. What is the five-step process that companies should use in recognizing revenue? Why might the auditor need to do additional research and consider additional criteria on revenue recognition? b. The following are situations in which the auditor will make decisions about the amount of revenue to be recognized. For each of the following scenarios, labeled (1) through (6): . Identify the key issues to address in determining whether or not revenue should he recognized. . Identify additional information the auditor may want to gather in making a decision on revenue recognition. . Based only on the information presented, develop a rationale for either the recognition or nonrecognition of revenue. 1. AOL sells software that is unique as a provider of Internet services. The software contract includes a service fee of $19.95 for up to 500 hours of Internet service each month. The minimum requirement is a one-year contract. The company proposes to immediately recognize 30% of the first-year’s contract as revenue from the sale of software and 70% as Internet services on a monthly basis as fees are collected from the customer. 2. Modis Manufacturing builds specialty packaging machinery for other manufacturers. All of the products are high end and range in sales price from $5 million to $25 million. A major customer is rebuilding one of its factories and has ordered three machines with total revenue for Modis of $45 million. The contracted date to complete the production was November, and the company met the contract dare. The customer acknowledges the contract and confirms the amount. However, because the factory is not yet complete, it has asked Modis to hold the products in the ware house as a courtesy until its building is complete. 3. Standish Stoneware has developed a new low-end line of baking products that will be sold directly to consumers and to low-end discount retailers. The company had previously sold high-end silverware products to specialty stores and has a track record of returned items for the high-end stores. The new products tend to have more defects, but the defects are not necessarily recognizable ¡n production. For example, they are more likely to crack when first used in baking. The company does not have a history of returns from these products, but because the products are new, it grants each customer the right to return the merchandise for a full refund or replacement within one year of purchase. 4. Omer Technologies is a high-growth company that sells electronic products to the custom copying business. It is an industry with high innovation, but Omer’s technology is basic. In order to achieve growth, management has empowered the sales staff to make special deals to increase sales in the fourth quarter of the year. The sales deals include a price break and an increased salesperson commission but not an extension of either the product warranty or the customer’s right to return the product. 5. Electric City is a new company that has the exclusive right to a new technology that saves municipalities a substantial amount of energy for large-scale lighting purposes (e.g., for ball fields, parking lots, and shop ping centers). The technology has been shown to be very cost effective in Europe. In order to get new customers to try the product, the sales force allows customers to try the product for up to six months to prove the amount of energy savings they will realize. The company is so confident that customers will buy the product that it allows this pilot-testing period. Revenue is recognized at the time the product is installed at the customer location, with a small provision made for potential returns. 6. Jackson Products decided to quit manufacturing a line of its products and outsourced the production. However, much of its manufacturing equipment could be used by other companies. In addition, it had over $5 million of new manufacturing equipment on order in a noncancelable deal. The company decided to become a sales representative to sell the new equipment ordered and its existing equipment. All of the sales were recorded as revenue.