A. The existence of loans. B. The completeness of loans. C. Related disclosures pertaining to assets pledged as collateral. D. The accuracy of interest expense recorded by the entity.
Q: The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Mi...
A: The excess overhead applied during a period of production over the actual overhead incurred during t...
Q: ACCOUNTING CYCLE: Complete the illustration Problem: On January 1 of the current year Josef Cacdac o...
A: Date Particulars Amount Jan-01 Cash a/c Dr 8000 To Capital 8000 Ja...
Q: answer if true or false 1. Merchandise or goods' ownership is transferred from the seller to the cus...
A: Sale of goods means when goods are transferred from one party to another party. Prepaid expenses are...
Q: Income statement information for Einsworth Corporation follows: Sales $280,000 Cost of goods sold 86...
A: The vertical analysis is a part of the comparative analysis. This analysis helps to analyze the perf...
Q: On January 1, 2010, WPK Co. sold a transportation equipment with a historical cost of P1,000,000 and...
A: Net cost of the equipment = Historical cost - Accumulated depreciation Present value of note = Face ...
Q: 2. ABC Corporation issued P1,000,000 in 8% bonds, maturing in ten years and paying interest semi-ann...
A: Solution Concept When the coupon rate of bond = market rate of interest , bond is called a par valu...
Q: In 2O2O Coca Cola reported net operating revenues of P18.2 billion and cost of goods sold for P0.8 b...
A: The gross profit rate indicates the percentage of the profit earned by the business after deducting ...
Q: On January 1, 2021 Asset of Matalino Company was P2,500,000 and its liabilities was P800,000. By Dec...
A: As per given information On January 1, 2021 Assets = P2,500,000 Liabilities = P800,000 On December ...
Q: For each account, identify whether it is included in a post- closing trial balance. Included in post...
A: All the temporary accounts like expenses, revenus and dividends are closed and are not shown in the ...
Q: true or false: 1. The matching principle states that expenses are recognized when incurred in genera...
A: Accounting principles are those rules, regulations and policies which are used for accounting, recor...
Q: antiago, Inc. has the following receipts during 2018: From service billings to client P400,000 Ad...
A: Solution Accrual basis of accounting Under accrual basis , the income is recorded when s...
Q: Required: Preparing the cash budget for 2022 on the months of July, August and September, with comm...
A: Data for the monthly cash budget preparation is given for the month of July, August and September. T...
Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which cos...
A: Monthly installments to be paid for 7 month P50,000 * 7 P350,000 Immediate down payment P100,000 Sa...
Q: Entity A operates in a hyperinflationary economy. Entity A has the following assets before restateme...
A: Investment in Bonds: It is a debt instruments in which bond holders receive interest periodical...
Q: Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2021. 1,465 x
A: Travel expense refers to those expenses which are incurred by the employees of the company at the ti...
Q: The generally accepted accounting principle that supports recording the value of a property at the p...
A: Monetary principle says that a business should only record transaction if it is measured in monetary...
Q: Wynn Company reported revenue of P6,000,000 under the cash basis for the year ended 2020. Additional...
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...
Q: On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a non-inte...
A: Non-interest bearing note is a debt instrument, for which there is no mandatory requirement or oblig...
Q: Work in process Inventory jan, 1 2009 Direct materials inventory, dec. 31,2009 Finished goods invent...
A: The direct costs are the costs that are directly related to production such as direct materials and ...
Q: The auto repalr shop of Quality Motor Company uses standards to control the labor time and labor cos...
A: The variance is the difference between the actual data and standard output of the production.
Q: considering expending into Eastern Canada. The expansion is estimated to cost $10,000,000 for a new ...
A: Flotation cost refers to the expenses bear by a company when it issues new shares in the market.
Q: August 31, 2024 Balance Account Title Debit Credit Cash 8,420 Accounts Receivable 5,000 Office Suppl...
A: The trial balance tells about the final balance of each account of the business. The trial balance i...
Q: After preparing and posting the closing entries for revenues and expenses, the income summary accoun...
A: Closing entries are made every year in order to ascertain the results. For a manufacturing concern...
Q: was P2,500,000 and its liabilities was P800,000. By December 31, 2021 Asset of Matalino Company was ...
A:
Q: On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a non-inte...
A: Present value of note receivable on December 31, year 1= Annual amount of payment x Present value fa...
Q: At the beginning of September, Helen Rojas started Rojas Wealth Management Consulting, a firm that o...
A: Statement of owner's equity = Capital + Net income - Withdrawals Net Income = Revenue - expenses As...
Q: 5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average ...
A: The FIFO stands for First in First out and LIFO stands for Last in first out. Using average method, ...
Q: For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation's liabili...
A: Number of outstanding ordinary shares = 800000
Q: Sheffield Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3 years. ...
A: The question is based on the concept of Operating Lease in Lease Accounting. Operating lease does n...
Q: Sage Hill Fashion Company enters into a lease arrangement with Highpoint Leasing for 5 years. Sage H...
A: Right-of-use assets will be recognized at the present value of minimum lease payment obligations.
Q: Your answer is incorrect. Splish Brothers Inc. wishes to lease machinery to Thiensville Company. Thi...
A: GIVEN Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The ...
Q: An employee is about to receive the sum of P300.00 at the end of each year for 5 years.One year prio...
A: given An employee is about to receive the sum of P300.00 at the end of each year for 5 years. One ...
Q: Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activit...
A:
Q: GBV Co. is preparing its November 30, 2015 bank reconciliation statement. The following information ...
A: Credit memos are those collections made by bank, which are not yet recorded in books of account. Thi...
Q: LOUD BASE WIRELESS sells a variety of mobile telephone accessories including several brands of Wirel...
A: Solution A Journal is an company's official book in which all business transactions are recorded in ...
Q: Merville is a dealer in real properties. Merville requires 20% downpayment, and the balance is payab...
A: Gross Income- Gross income refers to the combined income from all the different sources like salary,...
Q: In making a decision of whether to take on a new audit client, the auditor should perform all of the...
A: Acceptance decisions are critical since potential clients and/or contracts might jeopardize independ...
Q: At the beginning of September, Helen Rojas started Rojas Wealth Management Consulting, a firm that o...
A: The income statement is prepared to record the revenues and expenses of the current period. It tell...
Q: How does Declan's Designs' 2022 common stock issuance impact its 2022 Statement of Cash Flows? Qu...
A: Cash Flow statements are the statement of changes in cash in an organization. Any non-cash item will...
Q: An analysis of the cash book and other records of Byle Corporation data:
A: Net credit purchases during the year = Closing accounts payable + Payments on accounts payable durin...
Q: n 2014 Janice Martin fulfilled a life-long dream and moved her home-based cottage baking business to...
A: The contribution margin is excess of selling price over variable cost. While analyzing the decision ...
Q: the audit of loans payable, which of the following audit procedure would be most likely performed to...
A: Assertion is representation made by the management . it ensure that the financial records are accu...
Q: equired: Compute the activity rate for each activity using activity-based costing. . Compute overhea...
A: Solution Concept Under traditional method overhead are allocated using a single recovery rate Under ...
Q: Tamarisk Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 ...
A: Answer - Journal Entry in Lost Ark’s for 2019 - Date Particular Debit Credit Dec 31, 2019...
Q: What is Declan's Designs' 2022 total "Common Stock Issuance" to be reported on its Statement of Cash...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: 1.Sunland Company issues 31000 shares of $50 par value preferred stock for cash at $70 per share. In...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1...
A: Calculation of missing information: S1 total cost allocation to P2 = 100% - 10% - 20% ...
Q: What is the amount of sales under cash basis? What is the amount of purchases under cash basis? W...
A: Solution Note : as per the Q&A guideline we are required to answer the first three subparts only...
Q: after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? *
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of...
Q: Assume your organization has the following inventory changes during the year: Beginning inventory...
A:
During the review of loan contracts and agreements, the auditor would most likely figure out the following, except:
A. The existence of loans.
B. The completeness of loans.
C. Related disclosures pertaining to assets pledged as collateral.
D. The accuracy of interest
expense recorded by the
entity.
Step by step
Solved in 2 steps
- During the audit of Albert Eistein, what relevant assertion should be used to record loans receivable net of an allowance for loan losses when allowance should adequately cover any estimated losses inherent in the loan portfolio but not excessive losses? a. Existence or occurrenceb. Valuation or allocationc. Cutoffd. Rights or obligations Among the prescribed audit activities provided below, which of the following would effectively help Metro bank determine its proper allowance for loan losses? a. Make visits to the borrower's commercial business site periodically.b. Have procedures in place to identify problem loans in a timely fashion.c. Identify any weaknesses in the institution's lending process.d. Obtain additional collateral for a loan. When assessing the reasonableness of Metro Bank's allowance for loan losses as a whole, you discovered that his estimate differs from the recorded allowance and that the difference is immaterial. How should you address this finding in your audit?…In the audit of loans payable, which of the following audit procedure would be most likely performed to validate the existence assertion? Group of answer choices A. Vouching of subsequent payments of loans B. Sending loan confirmations C. Performing analytical procedures D. Review loan contractsDuring the review of loan contracts and agreements, the auditor would most likely figure out the following, except: Choices Related disclosures pertaining to assets pledged as collateral. The accuracy of interest expense recorded by the entity. The existence of loans. The completeness of loans.
- Which of the following audit procedures is least appropriate for addressing the assertion of valuation of liabilities? a. Confirm with creditors b. Test for unrecorded liabilities. c. Perform analytical procedures. d. Verify accounts payable trial balanceWhich of the following audit objectives ensure that if accounts receivable is pledged as security for debt, such information should be revealed in the financial statements? a. Ownership b. Disclosure c. Occurrence d. Rights and obligationsif the auditor want to assure that Receivables have not been sold. What assertion he or she want to test : Select one: a. Existence b. Completeness c. Rights and obligations d. Valuation and allocation
- In the examination of interest-bearing debt, auditors identify audit objectives, and then determine appropriate procedures. a. List the audit objectives for substantive tests of interest-bearing debt. b. List seven substantive tests for interest-bearing debt to help the auditors meet the audit objectives.The primary reason for preparing a reconciliation between interest-bearing obligations outstanding during the year and interest expense in the financial statements is toa. Evaluate internal control over securities.b. Determine the validity of prepaid interest expense.c. Ascertain the reasonableness of imputed interest.d. Detect unrecorded liabilities.discuss the process of auditing the following:• Revenue• Receivables• Expected Credit Loss (ECL)
- Auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts would most likely yield the highest level of evidence? a. Accounts receivable. O b. Interest expense. O c. Travel and entertainment expense. O d. Accounts payable.n the examination of interest-bearing debt, auditors identify audit objectives, and then determine appropriate procedures. a. List the audit objectives for substantive tests of interest-bearing debt. b. List seven substantive tests for interest-bearing debt to help the auditors meet the audit objectives.identify the primary audit objective for anaccrued liability such as Bankrates SEM accrual. what circumstances relevent to accrued liabilities can prove to be particularly challenging for auditors?
