The audit of historical financial statements should be conducted by the CPA professionals in accordance with Group of answer choices -The auditor's judgment -Generally accepted accounting principles -The audit program -Philippine Standards on Auditing
Q: Calculate the retained earnings of P Company immediately after the combination:
A: Net assets of S company = Total assets - total liabilities = P 8,000,000 - P 2,000,000 = P 6,000,0...
Q: When share options granted vest base on a service condition (ifrs2) a. Total fair value of the sha...
A: When Share options granted vest base on a service condition as per IFRS 2 Share based payments Share...
Q: 1. The right-of-use asset shall be initially recognized at cost, which shall be comprise of the foll...
A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...
Q: The ABC Partnership shows the following profit and loss ratios and capital balances of its partners:...
A: Solution: When new partner is admitted in partnership, the partnership is reconstituted. There are t...
Q: Novi purchased ABC bonds on 1/1/22. Data regarding these available-for-sale securities follow: ...
A: Fair value adjustment account shows the balance of unrealized gain (credit ) or unrealized loss on r...
Q: Compute the total cost, expected profit, and selling price. Write your solution and answer on the sp...
A: The solution can be found in the following sheet:
Q: Bulldogs Inc. had credit sales last year amounted to P18,600,000. The firm also had an average accou...
A: Solution.. Credit sales = P18,600,000 Average accounts receivable = P1,380,000 Average collection ...
Q: FCB Industries is evaluating two projects based on the discounted payback method. The company’s cost...
A: Calculation of Discounted Payback period Discounted Payback period = X + Y/Z Where, X is the last ye...
Q: Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's...
A: Pooling of interest is an approach that is used for the purpose of reporting the financial transacti...
Q: FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determ...
A: Lets understand the basics. When entity have any scare resources then management always wants to use...
Q: ABC Company was incorporated on January 1,2021. The following are the ordinary share transactions du...
A: No. of shares outstanding = Total no. of shares issued - number of shares reacquired but not retired
Q: pany discovered a computational error of P150,000 in the calculation of the December 31, 2021 invent...
A: Retained earnings refers to the amount which company remained from profit after paying all the divid...
Q: Bulldogs Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30%...
A: Answer) Calculation of Dividends per share Dividends per share = Earnings available for Common Stock...
Q: Bulldogs Inc. recently reported net income of P5,000,0000. The firm has P40,000,000 total assets. Ne...
A: The increase in retained earnings is calculated as change in net income multiplied by the retention ...
Q: Harmony is currently producing 100 units of a necessary component part by incurring P60,000 in direc...
A: Saving realize in buying instead of making the component = Relevant production costs - Buying costs ...
Q: The non-controlling interest in net assets of a partially owned subsidiary is: O Decreased by share ...
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What ...
Q: Dell Company is selling sounds and lights equipment. The company’s fiscal year ends on March 31. The...
A: Warranty is a contract between the seller and buyer of the product. Under the warranty contract, the...
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Stockholder's equity: It implies to the net assets (assets - liabilities) that have shareholder's cl...
Q: Under IAS 19 Employee Benefits, how is actuarial gain or loss handled? amount falling outside th...
A: IAS 19 deals with the employee benefits. It includes the pension, benefit plans and gratuity etc.
Q: Melissa Jackson, bookkeeper for Kinko Company, cannot prepare a bank reconciliation. From the follow...
A: Bank reconciliation statement is prepared with a view to reconcile the cash balance as per cash book...
Q: Apr. 1. Paid the treasurer of the union the amount of union dues withheld from workers' earnings d...
A: Payroll Payroll is considered to be one of the important function in the business entity and to time...
Q: Required information [The following information applies to the questions displayed below.] Stephanie...
A: Introduction: According to IRS, babysitters should report their income during filling their taxes if...
Q: On January 1, 2020, ABC Company granted 80,000 share options to employees. The share options will ve...
A: Compensation expense for 2022 = (Share prices on December 31, 2022 - option price ) x no. of shares...
Q: Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the fol...
A: Answer) Calculation of Total Sales revenue required to earn desired profit Total Sales Revenue to ea...
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tap...
A: Activity rate for the material handling cost pool = Total material handling costs / Total no. of mov...
Q: Panel Corp. owns 75% of the voting ordinary shares of Saturated Corp. acquired at book value during ...
A: Cost of Sales: The cost of goods sold as displayed on the consolidated financial statements of the B...
Q: ssom Limited reported the following selected information for the year ended March 31, 2021: Advert...
A: The income statement explains the financial performance of the company for a particular period of ti...
Q: What is commercial risk?
A: In financial terms, risk is defined as the possibility that the real profits from an outcome or inve...
Q: Parent Company acquired Subsidiary Company in two stages: In 2017, Parent acquired a 30% equity int...
A: Acquisition refers to the acquiring of one company call subsidiary by the other company called paren...
Q: average total assets 305,000 turnover 4.0 What is total sales
A: Total assets = 305,000 Asset turnover ratio = 4.0
Q: (a) Complete the aging schedule. Number of Days Accounts Estimated % Total Estimated Outstanding Rec...
A: Formula:- Total estimated uncollected Accounts = Account Receivable × Estimated % uncollectible.
Q: Rob Rote, the president and CEO of RRR Waste Management, was recently hospitalized, suffering from e...
A: Business Ethics: Implementing proper corporate rules and procedures in the face of potentially conte...
Q: A man owes his partner Ba sum of Rs. 1,50,000 in a business deal is requested by the latter to pay t...
A: This can be solved using simple excel based calculation. we may calculate the profit and loss by usi...
Q: Jason is a 50% partner in Shadow Lake Partnership. Jason's tax basis in Shadow Lake on January 1 was...
A: A partnership firm seems to be a type of business wherein two or even more partners agreed to split ...
Q: lossom Limited reported the following selected information for the year ended March 31, 2021: Adve...
A: In this question, we have to calculate Income Statement and statement of Comprehensive Income
Q: munication moving in a specific C cilitates task accomplishments. munication
A: Casual communication with another person is known as informal communication.
Q: The business owner uses personal funds to purchase common stock in his company, what is the journal ...
A: Lets understand the basics. Journal entry is required to make to record event or transaction occur d...
Q: How much is the temporary current assets needed during the fourth quarter?
A: Permanent current Asset The firms need to carry a minimum level of current asset at all the times. ...
Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The proceed...
A: A mortgage note is a promissory note or document containing terms and conditions of the mortgage. It...
Q: Preparing the Adjusting Entries at Year-End On Nov. 30, 2016, the end of fiscal year, the following ...
A: GIVEN Preparing the Adjusting Entries at Year-End On Nov. 30, 2019, the end of fiscal year, the fo...
Q: On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for P...
A: Bond Payable The main sources of generation liquidity into the business entity to raise the issue of...
Q: non-controlling interest in net assets of a partially owned subsidiary is: a. Decreased by amortizat...
A: NCI also known as Minority interest which refers to the equity ownership share in the subsidiary's e...
Q: proposed relaxation of credit standards of Bulldogs Inc. will increase the balance of accounts recei...
A: Solution.. Increase in accounts receivable = P95,000 Increase in average collection period = 3 *...
Q: Required: Journalize the above business transactions in general journal form.
A: Journal entries recording is the first step in accounting cycle process, under which atleast one acc...
Q: The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capit...
A: Existing Capital = Felton, Capital + Burchell, Capital Total Capital = Existing Capital + New Capita...
Q: Santa PLC is an all equity financed company with 100 million shares outstanding trading at €2 per sh...
A: Discount- In simple terms, Discount is an allowance or compromise in value. Discount is given so tha...
Q: On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiab...
A: 1) Sales of P 5500000 Less: merchandise ahipped to S at cost plus 25% (800000 x 125%) (1000000)...
Q: Bulldogs Inc. currently fills mail orders from all over the country and receipts were received in it...
A: Estimated net annual savings in implementing the lockbox system = Savings in interest - Annual cost ...
Q: Statement I: When a Partnership's operations resulted to a net loss, a partner who contributed legal...
A: In case if nothing is mentioned or absence of agreement then the partner who contributed purely his ...
Q: When a preference share is cumulative and non-participating: a. Any dividends not distributed from t...
A: "Since you have asked multiple questions, we will solve first question for you. If you want any spec...
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- 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.Select the necessary words from the list of possibilities to complete the following statements: assertion, codification, financial reporting framework, generally accepted accounting principles, International auditing and assurance standards board, interpretations, professional skepticism, quality control, shareholders, and statements on auditing standards Statements Answer 1. The purpose of an audit conducted in accordance with generally accepted auditing standards is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable __________. 2. The serially numbered pronouncements issued by the Auditing Standards Board of the AICPA as generally accepted auditing standards are known as __________. 3. Investors need to compare financial statements of different companies. The standards most frequently followed to prepare…In auditing, a special purpose auditors’ report is used in connection with the independent audit of the following financial information, EXCEPT A. Financial statements prepared in accordance with a comprehensive basis of accounting B. Compliance with contractual agreements C. Specified accounts elements of accounts or items in a financial statement D. Financial statements prepared in accordance with PFRS
- A special purpose auditors’ report is used in connection with the independent audit of the following financial information, EXCEPT A. Financial statements prepared in accordance with a comprehensive basis of accounting B. Compliance with contractual agreements C. Specified accounts . elements of accounts or items in a financial statement D. Financial statements prepared in accordance with PFRSWhich of the following is the most important responsibility of the external auditor? a. To ensure that financial statements comply with applicable financial reporting framework b. To ensure compliance with laws and regulations applicable to the entity c. To design, implement and maintain a system of internal control d. To express an opinion on a true and fair view of the financial statementsAuditing standards are:a. Ways to obtain / collect proof of transactionb. A collection of rules that must be obeyed by public accountants in carrying out auditsc. Measures regarding the quality of work (audits) of auditors recognized by the International Federation of Accountantsd. The requirements governing the types of audit evidence that the auditor must collect in performing the audit
- Which of the following should an auditor obtain from the predecessor auditor prior to accepting an audit engagement? O All matters of continuing accounting significance O Facts that might bear on the integrity of management O Analysis of balance sheet accounts O Analysis of income statement accountsAn audit strategy memorandum containsa. Specifications of auditing standards relevant to the financial statements being audited.b. Specifications of procedures the auditors believe appropriate for the financial statements under audit.c. Documentation of the assertions under audit, the evidence obtained, and the conclusions reached.d. Reconciliation of the account balances in the financial statements with the account balances in the client’s general ledger.The date of the CPA’s opinion on the financial statements of the client should be the date of the: Select one: a. submission of the report to the client. b. closing of the client’s books. c. finalization of the terms of the audit engagement d. completion of all important audit procedures
- The Responsibilities principle underlying AICPA auditing standards includes arequirement that(1) field work be adequately planned and supervised.(2) the auditor’s report state whether or not the financial statements conform togenerally accepted accounting principles.(3) professional judgment be exercised by the auditor.(4) informative disclosures in the financial statements be reasonably adequate.To do an audit of a company's financial statements, there must be several key elements and procedures including all of the following except: O A. Quantitative information in a verifiable form that can be checked by the auditor. O B. Some standards or criteria by which the auditor can evaluate the information, which are generally accepted accounting principles or International Financial Reporting Standards. C. Determining the degree of correspondence between information and established criteria using some kind and amount of evidence. O D. None of the above.Accounting Discuss the main types of auditing according to its objectives with giving examples for each type. Your answer for each type should include its purpose, to whom it is provided and who is eligible to conduct it. Ar Ski
