How would you know if all the necessary disclosures were prepared and contained correct information?

A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor investments (acquired for him by his now-deceased father). He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?

Hello! I need help with the following accounting principles question. It states that for each box, we can either select the question dislayed as being more likely asked by an external or internal user. Thank you in advance!

I am writing to seek advice from you with regards to numerous accounting issues. As you know most of our directors have limited accounting knowledge and they are bit confused with the accounting treatment for several items that has been proposed by our junior accountant. Our senior accountant is on sick leave, and we are unsure when she will be back. The directors want to make sure that the proposal by the junior accountant is in line with the requirements of the Australian Accounting Standards. They would also like to understand the reasoning behind the appropriate accounting treatments. A preproduction prototype has been developed for Aquadelight, another toy. Aquadelight is a toy meant to be used in the swimming pool and can also be used as a floatation aide. The amount incurred during the year for the preproduction prototype amounted to $55,000. The junior accountant says that there is a possibility that this amount can be recognised as an asset but has not been clear on how to…

You are a public accountant with many small business clients. During a recent visit to a client’s business, the bookkeeper approached you with a problem. The columns of the trial balance were not equal. You helped the bookkeeper find and correct the error, but believe you should go one step further. Write a memo to all of your clients that explains the purpose of the double-entry framework, the importance of maintaining the equality of the accounting equation, the errors that might cause an inequality, and suggestions for finding the errors.

An accounting firm creates financial statements for a large company. The accounting firm is creating the statements for an initial public offer that is likely going to be happening in the next month. The company gives the name of the underwriting firm and tells the firm to forward the end result to company to determine what their take of the offer should be, as well as to prepare the prospectus. After the offering, there is a major error uncovered, and the underwriting firm should have made a significantly different deal with the company. The underwriting firm sues the accounting firm. Is the underwriting firm likely to win in a state that employs the Primary Benefit Test? Group of answer choices     No, because there is no way to have foreseen the underwriting firm using the statements in the manner that they did.   No, because there was no privity of contract with the underwriting firm (the company was the client).   Yes, because the accounting firm knew the name of the third party,…

Which of the following would constitute an Agency Problem in the context of Business? Check all of the following that apply. Check All That Apply A manager authorizes a trip to Europe for himself at the company's expense even though he has no intention of doing any company business while on the trip. A manager makes a bad decision that costs the company tens of thousands of dollars, but he believes he is acting In the company's best interest rather than his own in making the decision. An employee takes home a box of pens for personal use without prior authorization, A manager turns down a project that analysis has shown to be profitable for the company because she is afraid of negative consequences for herself if something goes wrong.

answer these questions: step 1; Why do managers/accountants need to behave ethically? Explain. Step 2: Describe thestrengths and weaknesses of an accountant for icecream business. would they be good accountants?step 3:Compare and contrast manual accounting with computerized accounting, How are theydifferent?

Hi, I have an assignment and I was asked to the audit   Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare a audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment.    Week 2 - Identify the components/sections of a cash audit program for PSC.       Date General Journal  Debit  Credit Merchandise Inventory : $5,900 Account Payable Johns $5,900 Merchandise Inventory $330   Cash $330       Account Payable Johns $900 Merchandise Inventory $900   Account Payable Johns $5,000 Cash  $4,900 Merchandise Inventory  $100   Merchandise Inventory  $ 12,250 Account Payable Johns  $12,250   Account Payable Johns  $3,250 Merchandise Inventory   $3,250   Account…

Students will occasionally comment that they are studying to become accountants yet never mention Accounting Information Systems. Discuss the flaws in such reasoning.