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1 year ago

which of these is not true regarding the special function performed by the external auditing profession?

Business

1 answer:

Vladimir79 [104]1 year ago

3 0

It serves the interests of client management rather than the public.

The special function performed by the external auditing profession is the attestation to the fairness of the financial statements of clients.

"The special function helps ensure the reliability and integrity of the financial reporting system. The auditing profession exists to serve the users of an organization's financial statements. Auditors need to remember that they are serving the public interest and not necessarily the interests of client management."

"The special function is a testament that the financial statements of their client are fair. This function serves all users of the financial statement, to ensure they all will be receiving reliable financial information."

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Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas

taurus [48]

The contractual standard for product safety and liability that says the buyer chose to make the purchases and knows the each purchase involves informed consent is often referred to as the standard of caveat emptor. This is simply a warning that lets the buyer know and understand the product is sold as is and is subject to all defects. Basically, another way of saying buyer be ware.

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3 years ago

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,200 units)

Semmy [17]

Answer:

Option A,$257,732 is correct

Explanation:

The computation of income from operations requires that the operating expenses(variable operating expenses and fixed operating expenses) be deducted in the current period as against charging a portion to closing inventory as it is obtainable under the absorption costing method:

Direct materials $180,100

Direct labor $238,100

Variable factory overhead $261,800

Total prime costs $680,000

Less closing stock(1900*$680,000/18200) ($70,989)

Costs of good sold $609,011

add:operating expenses:

variable operating expenses $126,500

Fixed operating expenses $49,900

Fixed factory overhead $97,900

Total expenses $883,311

income from operations=sales-total expenses

=$1,141,000-$883,311=$257,689

The $257,689 is closest to option A,$257,732 the difference could be due to rounding error

4 0

3 years ago

In January of 2018, the Phillips Company purchased a patent at a cost of $100,000. In addition, $10,000 in legal fees were paid

soldi70 [24.7K]

Answer:

The answer is: $113,000

Explanation:

By 2020, Phillips Company had already amortized $22,000 of the patent expenses (2 years x [10% x ($100,000 + $10,000)]). Since it lost its patent defense in 2020, it will now have to write off $113,000 ($88,000 pending amortization + $25,000 in legal fees) for the adjustment of its 2018 income.

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3 years ago

A stock had returns of 12 percent, 16 percent, 10 percent, 19 percent, 15 percent, and -6 percent over the last six years. What

OleMash [197]

Answer:

10.68%

Explanation:

Data provided in the question:

Returns on stock : 12%, 16%, 10%, 19%, 15%, -6%

Now,

Geometric average return on the stock is calculated as:

Geometric average return = $({(1 + r_1)\times(1 + r_2).......\times(1 + r_n)})^\frac{1}{n}- 1$

Thus,

For the given returns on stock

Geometric average return

= $[ (1 + 0.12)\times(1 + 0.16)\times(1 + 0.10)\times(1 + 0.19)\times(1 + 0.15)\times(1 + (- 0.06)) ]^{\frac{1}{6}}-1$

= $[ 1.12\times1.16\times1.10\times1.19\times1.15\times0.94 ]^{\frac{1}{6}}-1$

= $[1.8384056768]^{\frac{1}{6}}-1$

= 1.1068 - 1

= 0.1068

= 0.1068 × 100%

= 10.68%

6 0

3 years ago

Sheridan Company sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $4400, and selling and admini

Minchanka [31]

Answer:

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Income Statement

For the year ended December 31, 202x

Sales revenue $170,400

Cost of goods sold ($129,600)

Gross profit $40,800

Period costs ($24,000)

Operating income $16,800

cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit

COGS 2020 = 24 x $5,400 = $129,600

sales revenue = 24 x $7,100 = $170,400

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3 years ago