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Yuri [45]
1 year ago
13

Ordinarily, which is the most significant audit objective and primary risk area for auditors in the examination of accounts paya

ble?
Business
1 answer:
Kisachek [45]1 year ago
8 0

Ordinarily, the most significant audit objective and primary risk area for auditors in the examination of accounts payable is:

Audit Objective: Completeness is the main goal of the accounts payable audit. Completeness suggests that the payable won't receive any significant future additions. Accounts payable are a significant source of operating cash flows in the drug wholesale industry because inventory turnover is very high.

Primary Risk Area:

1) Intentionally understated are expenses and accounts payable.

2) There are payments made to unsuitable vendors.

3 )Payments are made twice to vendors.

#SPJ4

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Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a
BigorU [14]

Answer and Explanation:

The computation of two different depreciation schedules is shown below:-

a. Using the Double-declining balance method

Year            Equipment Cost      Depreciation rate     Amount

2005                $90,000                     50%                  $45,000

2006                $45,000                      50%                  $22,500

2007                $22,500                      50%                  $11,250

2008 No depreciation as it is lower that straight line method that is $22,500 also we took the double rate of 25% so we consider 50%

b. Using the straight line method

Straight Line Depreciation Method:

$100,000 - $10,000

= $90,000

Year            Equipment Cost      Depreciation rate      Amount

2005                $90,000                     25%                      $22,500

2006                $90,000                      25%                     $22,500

2007                $90,000                      25%                     $22,500

2008                $90,000                      25%                     $22,500

Depreciation rate is

= 1 ÷ 4 years

=  25

2. The double declining method reduced the net income while the straight line method increased the net icnome

5 0
3 years ago
A C corporation earns $ 9.20 per share before taxes and the company pays a dividend of $ 4.00 per share. The corporate tax rate
alexgriva [62]

Answer:

The answer is $4.27

Explanation:

Solution

Given that:

AC corporation earns = $9.2 per share

Pays a dividend of =$4.00

The tax rate (Corporate ) is​ =39%

The tax rate on personal dividends is​= 15%

The tax rate for non-dividend personal  income is​ = 36%

Now,

We must find the after tax rate amount  of after tax rate an individual or a person would earn from the dividend

Thus,

The corporate tax =$9.40 * 39% = 3.67

Personal tax = $4.00 * 15% = 0.6

Now we find the total for the after tax rate

Total = $3.67 + $0.6

= $4.27

Therefore, the after tax rate an individual or a person would earn from the said divided is $4.27

6 0
3 years ago
Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located
vazorg [7]

Answer

The answer and procedures of the exercise are attached in the images below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.  

6 0
3 years ago
The accounts in the ledger of Seaside Furniture Company as of August 20Y5 are listed in alphabetical order as follows. All accou
musickatia [10]

Answer:

Cash $426,800.00

Debit side $6,500,000.00

Credit side $6,500,000.00

Explanation:

Preparation of the Unadjusted trial balance

SEASIDE Unadjusted Trial Balance

DEBIT SIDE

Cash 426,800.00

Accounts Receivable 660,500.00

Prepaid Insurance 21,600.00

Supplies 11,200.00

Land 1,850,000.00

Dividends 36,000.00

Wages Expense 2,950,000.00

Utilities Expense 82,000.00

Rent Expense 390,000.00

Supplies Expense 23,700.00

Insurance Expense 18,000.00

Miscellaneous Expense 30,200.00

TOTAL $6,500,000.00

CREDIT SIDE

Notes Payable 75,000.00

Accounts Payable 118,600.00

Unearned rent 12,000.00

Common stock 150,000.00

Retained Earnings 1,814,400.00

Fees Earned 4,330,000.00

TOTAL $6,500,000.00

CASH will be the balancing figure since the total of both Debit and Credit columns of trial balance must equal.

Therefore the Unadjusted trial balance be:

Debit side $6,500,000.00

Credit side $6,500,000.00

8 0
2 years ago
Mr. and Mrs. Garcia have a total of $100,000 to be invested in stocks, bonds, and a money market account. The stocks have a rate
Alexeev081 [22]

Answer:

Explanation:

Let y amount be invested in bonds

Let x amount be invested in money account

Let x amount be invested in stocks

x = y + 3x

10,000 = 12/100(y+3x) + 8/100*y + 4/100*x

10,000 = 12(y+3x) + 8y + 4x / 100

10,000 * 100 = 12y+36x + 8y + 4x

2500 * 100 = 3y + 9x + 2y + x

250,000 = 5y + 10x

50,000 = y + 2x.......................(1)

x + y + z = $100,000

y + 3x + y + x = $100,000

2y + 4x = 100,000

y + 2x = 50,000.......................(ii)

y = 50,000 - 2x

x = 50,000 + x

z = z

<u>2 Options are</u>

{(x,y,x), (x2,y2,z2)}

= (50000, 50000) (60000, 30000, 10000)

7 0
3 years ago
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