Explain the auditor legal liability, this includes what law that procure such liability?
Q: The purpose of a discount price for bonds is to: Select one: a. Increase profits b. Compensate the i...
A: solution Concept The bond is issued at discount when -the coupon rate is less than t...
Q: Your answer is partially correct. Buffalo Corporation had the following 2020 income statement. Reve...
A: The question is related to Cash Flow Statement. The Cash Flow Statement is summary of Cash Receipts ...
Q: Question Content Area Equivalent Units of Production The Converting Department of Hopkinsville Compa...
A: Solution:- Calculation of Number of Equivalent units of production as follows under:- Note:- 1) 30% ...
Q: Ivanhoe Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD. One cou...
A: (a) Period 1
Q: C has beginning inventory for the year of $12,000. During the year, ABC purchases inventory for $150...
A: Solution: Cost of goods sold is the cost of total goods available for sale reduced by ending invento...
Q: Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balance...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Assume the following: Lomo Engineering Company had the following transactions: Jan-01 Iss...
A: Journal entry is a process of recording or classyfing business transactions into books of accounts i...
Q: On May 15, 2020, Aldean Company, a calendar year taxpayer, purchased and placed into service a nonre...
A: As per USA Income Tax Act i.e rules of depreciation by IRS , a comm...
Q: explain adjusted balance method, book to bank method and bank to book method
A: Bank Reconciliation The purpose of preparing the bank reconciliation statement is to find out the ad...
Q: Mondstadt Corporation sells two products, X and Y at a rate of 3 units and 5 uni respectively. The f...
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first three ...
Q: Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: What is the purpose of emergency fund?
A: Emergency Fund: An emergency fund is a vital corpus that must be set up in case of unforeseen circum...
Q: n the coming three years, you will need Php 200,000. What amount will you deposit in a bank at prese...
A: solution Given for first question Future value needed 200000 Present value ? Interes...
Q: Which of the following can be considered as an effective control of cash? A. One person handles the ...
A: Option A is incorrect because Segregation of duties is an effective control of cash. Option B is inc...
Q: A partnership is an association of no more than two persons to carry on as co-owners of a business f...
A: The question is based on the concept of Partnership Accounting.
Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with t...
A: Net income margin = net income/sales
Q: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, what would the...
A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale ...
Q: . How do the relationships between the balance sheet, income statement, job cost ledger, and equipm...
A: A balance sheet is a financial statement which shows a company's assets, liabilities, and shareholde...
Q: What amount should be reported as Cash on December 31, 2017?
A: Cash equivalents refers to those short-term investment of the company which are easily converted int...
Q: Which should be recorded in accounts receivable? a. receivables from officers b. receivables from ...
A: The balance sheet represents the financial position of the business with assets and liabilities on a...
Q: On 31 December, 2021, a customer has bought a 2-day pass for using the spa facilities on 31 December...
A: Solution Concept Accrual basis of accounting As per the accrual basis of accounting ...
Q: Account Name Debit Credit Sales 750,000 Sales Returns and Allowances 15,000 Sales Discounts 10,000 P...
A: Lets understand the basics. Profit means a all the income less all the expense during the period. Fo...
Q: He buys them at R10 each and sells them for R25. e Some tourists bought 10 units from Peter. a Purch...
A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question ...
Q: City of Smithville General Fund Operating statement account balances For year 2023 E...
A: In case of government funded organization, expenditure incurred out of the fund provided by the gove...
Q: Some business transactions purchase goods and services from the seller, on credit. The buyer of thes...
A: Purchase of Merchandise on Account - Purchases on Accounts means Inventory purchase without paying i...
Q: Township should record the Land at:
A: Cost allocation refers to the process which is used by the company to allocate the cost of product o...
Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment earn...
A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an...
Q: QUESTION 1 In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of...
A: The term inventory refers both to raw materials used in manufacturing and the finished goods that ar...
Q: Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are ...
A:
Q: For the month of January 2022, PBB Company reported the following production data for Finishing Depa...
A:
Q: What is the times interest earned ratio for 2021?
A: Times Interest Earned = EBITDA / Interest Expense EBITDA = Earnings before Interest and Taxes + Depr...
Q: Enumerate at least 5 violations on required disclosures in the Notes to Financial Statements.
A: The answer for the question on violation on required disclosures in the Notes to financial statement...
Q: Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, “b...
A: Process costing is a method of cost accounting, which is used where there is continuous production a...
Q: [True or False] L. Hill, a sole trader, invests the following assets in a new partnership: $15,000 i...
A: Lets understand the basics. Partnership is an agreement between two or more person who works togethe...
Q: ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000 a...
A: Given details: Face value, FV = P5,000,000 Coupon rate = 8%, So interest per annum is P5,000,000 x 8...
Q: Using the data in the following table, how much bond amortization was recorded for the 4th interest ...
A: Lets understand the basics. When bond is issued at premium then premium needs to amortized either th...
Q: a.) At what amount should Prince of Wales record the building on July 1,2020? b.) What is the annual...
A: Calculation of lease liability, this the amount which Prince of Wales should record. Lease Term 1...
Q: Instruction: For each transaction, identify the account debited and credited. Debit Credit 1 Clark L...
A: Introduction: Journals: Recording of a business transaction in a chronological order. First step in ...
Q: Among the properties included in the decedent’s gross estate is a four-story commercial building wit...
A: The formula of computing deductible loss when the assets are Partially destroyed: Deductible loss = ...
Q: Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, "b...
A:
Q: What is the amount of the deferred tax liability at the end of 2021
A: Deferred tax liability refers to those tax liabilities of a company which is recorded in the balance...
Q: P42,000 P58,000 P75,0 cable Securities 25,0 36,000 75,000 32,000 45,000 ts Receivable 85,000 125,C p...
A: Cash Conversion cycle (CCC) which is a ratio that states the time duration and this time states tha...
Q: Compute the ending inventory and the cost of goods sold under the LIFO cost flow assumption assuming...
A: LIFO is last in first out method in which inventories which are purchased in last will be sold out f...
Q: PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 &...
A: Revenue refers to the amount received by the company from selling goods and services to the customer...
Q: The amortization on a bond premium:
A: The amortization on a bond premium: (d) Is calculated by multiplying the bond’s carrying value by th...
Q: Tinkiwinki Inc., corporation, has the following pertinent information happened during year 2022 Cash...
A: The cash flow statement is prepared to record the cash flow from various activities such as operatin...
Q: before write-off. (Write-off of the year was P20,000) No.2: P5,000 from accounts written off in a y...
A: Bad debt recovery refers to the sum value of money received for a bad debt that was earlier written ...
Q: All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs ...
A: Break even point = Total Fixed costs / Contribution margin per unit where, Contribution margin per u...
Q: On January 2, 2013, Phillips Corporation purchase 80% of signage Company's outstanding shares for P6...
A: Introduction IFRS 3 provides two options of measuring non-controlling interest in an acquiree: ...
Q: Correcting the Trial Balance: Alpha received cash of $300 in advance from a customer that has not ye...
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized i...
Step by step
Solved in 2 steps
- In your words, what is the legal responsibility of the auditor?Distinguish between the legal concepts of actually foreseen third-party users and reasonably foreseeable third-party users. How does each concept establish a basis for an auditor’s legal liability to third parties?Distinguish between common-law liability and statutory liability for auditors. What is the basis for the difference in liability, and what are the key practical differences between the two, such as burdens of proof, consequences or penalties, intent, etc.?
- How does the prudent person concept affect the liability of the auditor?what are the key practical differences between common-law liability and statutory liability for auditors, such as burdens of proof, consequences or penalties, intent, etc.?What is the auditor's obligation in light of the prudent person concept?