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2 years ago

When conducting an independent audit the accountant is to evaluate a company's financial statements and?

1 answer:

3 0

A financial statement audit is the examination of an entity's financial information and accompanying exposures by a liberated auditor.

<h3>What is the main objective of the audit of financial statements?</h3>

The purpose of an audit of financial statements is to enable the auditor to communicate an opinion on whether the financial statements are prepared, in all material respects, by an applicable monetary reporting framework.

External auditors are accountable for auditing the company's financial statements and delivering reasonable assurance that they are presented fairly and following GAAP and that they recollect a true representation of the company's financial position and end of operations.

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Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal conta

Nuetrik [128]

Answer: Please refer to Explanation.

Explanation:

1. Honesty.

State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".

2. Persistence.

You can be persistent on the phone if you detect deceit in the secretary's tone.

For instance,

" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".

If it still doesn't work, ask for a convenient time you can call back.

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3 years ago

Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end invento

Genrish500 [490]

Answer:

inventory impairment/cost of good sold (p/l) $500

Explanation:

IAS 2 requires that inventory be initially recognized at cost including cost of purchase and other necessary cost incurred in getting the inventory to the location where it becomes available for sale.

Subsequently, the item of inventory is carried at the lower of cost or net realizable value (NRV).

Quantity Unit Cost Unit NRV Lower of cost/NRV Amount

Model A 100 $100 $ 120 $100 $10,000

Model B 50 $50 $ 40 $40 $2,000

Model C 20 $200 $210 $200 $4,000

Adjustment required = 50 ($50 - $40)

=$500

This posted as

Debit inventory impairment/cost of good sold (p/l) $500

Credit Inventory account $500

5 0

3 years ago

Walsh Company sells inventory to its subsidiary, Fisher Company, at a profit during 2012. One-third of the inventory is sold by

Ivanshal [37]

Answer:

A. Retained earnings

Explanation:

At the end of the period, the temporary accounts are closed, their balance is transfer to retained earnings, so the COGS and the sales revenue involved in the intra-entity transfer are contained in the retained earnings account

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3 years ago

Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company

algol [13]

Answer:

b) Income is allocated on a pro rata basis

Explanation:

A partnership is an agreement between two or more people to oversee a business and share in the profit and losses made by the business.

In a partnership when income comes in it is shared.on a pro rata basis.

This means income is given based on the level of ownership of the business.

For example a partner that has 60% ownership of the partnership is expected to collect 60% of the business income.

Pro rata is also called proportional rate.

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3 years ago

At January 1, 2020, Windsor Company had plan assets of $303,000 and a projected benefit obligation of the same amount. During 20

Arte-miy333 [17]

Answer:

The answer is well illustrated as below

Explanation:

Remember: Five factors affects the Pension Liability and Plan assets.

1 & 2. Expenses which includes service cost and interest cost

The increase in expense always increases the pension liability so the entry would be:

Dr Service cost $27,100

Dr Interest Cost $30,300 ...... $303,000 Opening Pension Liability * 10%

Cr Pension Liability $57,400

3. Actual return increases the Plan Asset

The Actual return on investment received would increase the Assets worth, which means the journal entry must be passed which would increase the Investment Value (Plan Asset). So the entry would be:

Dr Plan Asset $25,700

Cr Actual return $25,700

4. Contributions made increases the Plan Asset because it is an increase in the investment.

So the journal entry would be:

Dr Plan Asset $20,000

Cr Cash Asset $20,000

5. The benefits paid to employees are decrease in both pension asset and the pension liability. (We had actually borrowed money from the employees and had invested that money so paying off the benefits actually decreases the pension liability and assets).

So the double entry would be:

Dr Pension Liability $17,700

Cr Pension Assets $17,700

Kindly input the above values in the following worksheet:

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3 years ago